Interim Budget vs Union Budget 2019: What to expect from Arun Jaitley's suitcase this time?

An Interim or Provisional or Short Term Budget is an outgoing government’s financial proposal for seeking approval on its expected expenditure for its remaining tenure.

Arun Jaitley will present an Interim Budget 2019 for the months April, May, June and July. (Image: PTI)

Budget 2019: If Interim Budget 2019 is a new term ringing in your ears, then be wary that as the name suggests, an Interim or Provisional or Short Term Budget is an outgoing government’s financial proposal for seeking approval on its expected expenditure for its remaining tenure. As the General Elections 2019 will be held from May 2019 onwards, Finance Minister – Arun Jaitley will present an Interim Budget 2019 for the months April, May, June/July 2019 only. Interim Budget 2019 vs Budget 2019-20 Who decides what? While Interim Budget 2019 will be presented by the ruling NDA government, it’ll be bereft of any new schemes, tax benefits on direct taxes, changes in indirect taxes, or corporate taxes, as well as any sops to the agrarian sector or industries. The Interim Budget 2019 will be delivered to only get a Vote-on-Account on the incumbent’s estimated expenditure for the first four months of the next fiscal year. A full-fledged Budget 2019-20 will be presented by the new government that will come into power after the results of General Elections 2019 will be declared. If the Modi-government is brought back to power for the next 5 years then restructuring of Direct as well as Indirect taxes can be on cards, as hinted by the Prime Minister in a recent interview with ANI, while continuing with its current schemes for skill development of youth, electrification and sanitation in rural India, healthcare for poor, amongst others. On the other hand, if a new government takes the centre with the grand alliance defeating BJP, then a total GST reboot including other populous measures could be on cards to deliver on poll promises. NDA or UPA? Budget 2018 was dubbed as a “farmer-friendly, common citizen friendly, business environment-friendly and development friendly” budget that “will add to ease of living,” by Prime Minister Narendra Modi. However, the BJP was left red-faced in the recent state elections at 5 states viz Madhya Pradesh, Rajasthan, Telangana, Chhattisgarh and Mizoram; majorly due to the agrarian crisis and anti-incumbency in MP, Rajasthan and Chhattisgarh, KCR’s stronghold in Telangana, and MNF’s clean sweep at Mizoram. While the opposition parties in Madhya Pradesh and Rajasthan played on agriculture debt waivers, the BJP distanced itself from providing any such relief to the farmers who had been holding agitations for more than two years now. It is only to wait and watch who will deliver the full-fledged Budget 2019-20 speech and what it’ll have in store for India Inc.