New Delhi: The Finance Ministry has clarified that the Government would indeed be presenting the Interim Budget this Friday. Earlier, reports had suggested that the Government was likely to present a full-fledged Budget instead of a vote-on-account. (Also read: Chadrababu Calls For Boycott of Budget, Says Centre Cheated State)
In a press conference, acting Finance Minister Piyush Goyal said this Budget will be called Interim Budget 2019-20.
The tradition in an election year is to present an Interim Budget or Vote on Account. The full Budget is presented by the new government after the elections.
The Government does not introduce any new service nor does it bring the Finance Bill or present the Economic Survey in an Interim Budget.
Goyal would be presenting the Interim Budget this Friday, February 1, as he has been given the additional charge of Finance after Arun Jaitley left for the US for medical treatment.
The Centre has scrapped the colonial-era tradition of presenting the budget at the end of February. With the advancement of the Budget, ministries are now allocated budgeted funds from the start of the financial year beginning April.
This gives the government departments more time to spend as well as allows companies to adapt to business and taxation plans.
Previously, when the budget was presented at the end of February, the three-stage Parliament approval process used to get completed sometime in mid-May, weeks ahead of the onset of monsoon rains. This meant government departments would start spending on projects only from August-end or September after the monsoon season ended.