The interim budget is likely to highlight the government’s achievements as well as draw a picture of what it has planned for the next five years.
Keeping with the convention, Finance Minister Arun Jaitley will present an interim budget for fiscal year 2019-20 in February as the Modi government goes to polls a few months after. This puts an end to speculations that the Modi government could present a full-fledged budget a few months before the 2019 General Elections. The interim budget is likely to highlight the government’s achievements as well as draw a picture of what it has planned for the next five years, The Economic Times said while quoting a senior official.
The interim budget, which is also referred to as vote-on-account, for FY20 will be presented on February 1, 2019. Discussion on this will begin after different central ministries present their inputs to the Finance Ministry for Jaitley’s sixth budget speech. Earlier this week, the Finance Ministry wrote to other ministries, asking them to submit their inputs by November 30. The budgetary exercise for 2019-20 was started last month.
As per the practice, a vote-on-account presented during an election year takes approval for essential government expenditure for a limited period, which is usually four months, but presents the budget estimates for the entire financial year. A full-fledged budget is presented by the new government later in the year, where it can even alter the estimates.
Arun Jaitley could also include some tax measures in his upcoming budget speech, the report said. While interim budgets usually keep tax rates unchanged, there have been instances of tax proposals being presented in transition budgets.
Since all indirect taxes have been subsumed in the Goods and Services Tax (GST), any changes in their rates can be done by the GST Council only. This means that Jailtey might announces some changes related to custom duties and direct taxes.
Source- Business Today.