The upcoming Parliament Budget session, scheduled to take place from January 31 to February 9, is poised to be a significant event on India’s political and economic calendar. Finance Minister Nirmala Sitharaman is expected to present the Interim Budget for the financial year 2024-25 on February 1, marking a crucial moment in the government’s fiscal policy.
President Droupadi Murmu is slated to address both houses on the opening day of the session, officially inaugurating the budget proceedings in the parliament. The budget session holds immense importance as it sets the financial agenda for the upcoming year and outlines the government’s priorities and allocations.
One of the anticipated proposals in the Interim Budget is the possibility of doubling the PM Kisan Samman Nidhi for female farmers. If implemented, this move is estimated to cost the government an additional ₹12,000 crore. The proposal aligns with the government’s focus on supporting and empowering female farmers, recognizing their significant contribution to the agricultural sector.
Unlike previous years, this year’s budget will be an interim one, given the upcoming Lok Sabha elections scheduled within the next two or three months. An interim budget is presented by the ruling government in an election year or when there is insufficient time for a full-fledged budget. The responsibility of drafting the comprehensive annual budget falls on the new government that assumes office post-elections.
The decision to present an interim budget reflects the constitutional and procedural norms, ensuring the continuity of government functioning while allowing the incoming administration to shape the long-term fiscal policy. The interim budget typically addresses immediate financial needs and ongoing government programs, deferring major policy decisions to the full budget presented by the new government.
This year’s budget session is expected to differ from previous years in terms of the Economic Survey. Instead of an extensive Economic Survey as seen in earlier sessions, a concise report on the status of India’s economy for the fiscal year 2024-25 is anticipated to be presented just before the Interim Budget on February 1. The streamlined approach aims to provide essential economic insights without overshadowing the primary focus on budgetary allocations.
The finance ministry has initiated preparations for the budget session by soliciting expenditure proposals for the second and final batch of Supplementary Demands for Grants from various ministries and departments. This step precedes the Budget session, likely to commence in the last week of January. The second batch of Supplementary Demands for Grants for 2023-24 is expected to be placed before Parliament during the ensuing Budget session.
Given that this is the last session of the 17th Lok Sabha before the general elections, the government will seek expenditure approvals through a vote on account. The vote on account is a mechanism through which Parliament approves government expenditures for a specified period, allowing the administration to meet essential financial requirements until the new government presents a comprehensive budget.
The upcoming Budget session holds significance not only due to the presentation of the Interim Budget but also in light of the supplementary demands, which will shape government expenditures for the coming months. The financial decisions made during this session will impact various sectors and contribute to the broader economic trajectory as India navigates through evolving global and domestic challenges.
