Budget 2024: Finance Minister Nirmala Sitharaman will announce her sixth Budget on February 1. However, this will be an interim Budget, and a full-fledged one will be presented after the Lok Sabha elections later this year.
The last interim budget for India was presented in 2019 by then Finance Minister Piyush Goyal. While interim Budgets are said to have no major policy changes, let us take a look at some key announcements Goyal made in Interim Budget 2019.
Interim budget 2024: 5 key announcements in previous interim budget
Income tax relief
The interim budget proposed substantial income tax relief for the middle class by increasing the income tax exemption limit from Rs 2.5 lakh to Rs 5 lakh.
Also Read: Budget 2024: FM Sitharaman takes part in 'halwa ceremony'; what is it?
Also Read: Budget 2024: FM Sitharaman takes part in 'halwa ceremony'; what is it?
Pradhan Mantri Kisan Samman Nidhi (PM-KISAN) scheme
The budget introduced the PM-KISAN scheme, aiming to provide direct income support to small and marginal farmers. Under this scheme, eligible farmers would receive Rs 6,000 per year in three instalments directly into their bank accounts.
It was launched later that month by Prime Minister Narendra Modi.
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Standard deduction for salaried
The standard deduction for salaried employees was increased from Rs 40,000 to Rs 50,000, providing additional tax relief to the salaried class.
Hike in gratuity limit
The gratuity limit, which represents the maximum amount payable as a gratuity to an employee, was doubled from Rs 10 lakh to Rs 20 lakh.
Pradhan Mantri Shram Yogi Maandhan scheme
The Pradhan Mantri Shram Yogi Maandhan scheme was introduced, offering a pension of Rs 3,000 per month for workers in the unorganised sector after the age of 60.
What is interim budget?
An interim budget is a budget presented by the government, typically in an election year or when the general elections are due.
The main intention behind the interim budget is to meet the government's expenditure for a short period until the new government presents a full-fledged budget.
It is also known as a "vote-on-account". According to the Constitution of India, a "vote-on-account" seeks the approval of Parliament for essential government spending and the withdrawal of funds from the Consolidated Fund of India.
How is an interim budget different from a full-fledged budget?
An interim budget is a temporary financial arrangement presented in the context of elections. On the other hand, a full-fledged budget is a comprehensive document that outlines the government's financial strategy for the entire financial year.
The interim budget focuses on continuity and essential expenditures. However, the full-fledged budget provides a platform for announcing new policies and presenting a detailed financial plan.
