FAQs on Interim Budget 2019-2020

What is an interim budget? An interim budget as the name itself literally suggests it’s the budget presented in an interim fashion, it is not an actual full-fledged budget it is something presented as a temporary solution. This is generally done during the time of the year when in there is an election, a general election close by as it is now. Therefore, an interim budget is not really a full-fledged budget but a mini version of it. What is the difference between an interim budget and a vote on the account? An interim budget would be talking a lot about the past expenses and past revenues, also something around the future expenses and revenues that the government expects at least for the next couple of months till the general Lok Sabha elections are conducted whereas, a vote on account, on the other hand, has the first part intact it will talk about the past revenue and expenses but at the same time it will also focus majorly around the expenses that the government would be making and not so much around the sources of income or the revenues per say. The government generally during election years can choose to present one of these. This year the finance ministry explicitly mentioned that it would be presenting an interim budget. How is the interim budget different from the final budget? Final Budget actually consists of a lot more than an interim budget, it talks about the past and the future years revenue and expense in detail, however, an interim budget obviously cannot really talk much about the sources of revenue in future, neither about the expenses that it expects to, the current government expects to incur over an entire year so it is somewhat an apprised version of a full budget. Generally a full budget can include several important measures like certain tax changes, policy changes while the interim budget can also introduce a few policy changes, the election commission of India has certain guidelines to ensure that the interim budget is not presented in a way that you know unfairly influenced the voting section of the society, so that is the basic difference between an interim and a full budget. Does interim budget 2019 hold any value? All budgets do hold value and the interim budget would actually be indicative of what the current government is willing to do, having said that it is not necessary that it does everything that it mentions in the interim budget but it actually explains the mindset and the framework with which the current government expects you to know run the economy if re-elected so that offers some more insight and perspective and apart from that, while it does not hold any significant value for the longer term it does have a deep impact on the sentimental and emotional fronts on the Indian population so by that measure it does have a certain degree of importance. Speaker Info: Nirav Karkera is the Head of Research at MyWay Wealth. He is known to look beyond just numbers and identify wealth-creation opportunities in the Indian capital markets. A former U.S. Oil & Gas, Chemicals credit analyst with a globally-renowned credit rating agency, he has a penchant for translating dynamic economics into wealth propositions. Nirav specialises in generating risk-optimal wealth for investors through strategic as well as tactical play with equity and fixed income assets. He is up, anytime, for an intellectual debate around anything that pertains to business, economics & wealth. He can be reached at [email protected] Download android app: http://bit.ly/2OMEWvn Download ios app: https://apple.co/2PVqN2C Check out our Facebook Page: https://www.facebook.com/mywayw/ Check out our website: http://mywaywealth.com/