Union Finance Minister Nirmala Sitharaman confirmed that her upcoming budget announcement on February 1, 2024, will not feature any groundbreaking measures, as it is intended to serve as a vote on account ahead of the general elections.
During the CII Global Economic Policy Forum, she emphasized that the real fiscal plans for the 2024-25 fiscal year would be unveiled in July by the newly elected government post the April-May general elections.
Sitharaman clarified, “The February 1, 2024, budget will be a mere vote on account, addressing the government’s essential expenses until the new administration takes charge. While I don’t want to dampen expectations, the truth is that no extraordinary announcements are anticipated during this vote on account. The eagerly awaited substantial measures will be disclosed after the new government assumes office and presents the comprehensive budget in July 2024.”
In response to inquiries about the possibility of a “supercharged budget” in February, she assured that such ambitious plans would be deferred until the subsequent full budget announcement. Historically, vote on account sessions do not witness significant policy revelations, with governments opting to save major announcements for the comprehensive budget presentation.
Notably, the last interim budget in 2019 was presented by Piyush Goyal, who temporarily took charge of the Ministry of Finance due to Arun Jaitley’s illness. While Goyal introduced measures like a Rs 6,000 per year cash dole to 12 crore farmers, tax benefits for the middle class, and a full tax rebate for individual taxpayers with an annual income of up to Rs 5 lakh, Sitharaman’s approach for the upcoming vote on account remains focused on essential fiscal responsibilities.
Traditionally, vote on account sessions do not feature the customary pre-budget Economic Survey, which typically precedes the comprehensive budget presentation. This survey provides an in-depth analysis of the economic landscape and sets the stage for the government’s financial strategies. Such comprehensive insights are typically reserved for the July presentation of the full budget in Parliament.
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