Amid speculations that the Centre might go ahead with a full budget, the Ministry of Finance on Wednesday clarified only a Vote on Account will be released by interim finance minister Piyush Goyal on Friday.
The ministry added that the term “full budget” or “Union budget” was used only for the purpose of communication since there is no official term for an interim budget.
The provisional calendar released by the Lok Sabha categorised the event on February 1, as Interim Budget. Presenting a full budget would have been seen as a deviation from the tradition and listing big moves for the economy in this session.
The full budget is typically presented in July by the central government, in this case, a newly elected government after the general elections.
Yashwant Sinha, the former finance minister, on Monday, said it would be “entirely improper and unconstitutional” if the Modi-led government presents a full budget ahead of the Lok Sabha polls, as he asked it to stick to the convention of outgoing dispensations presenting an interim budget.
Meanwhile, Arun Jaitley had earlier hinted that a farm relief package for distressed farmers may be a part of the interim budget.
BJP has been facing the wrath of farmers as they have not got the right price for their farm produce. The increase in the minimum support price to one and a half times the cost of production announced in the last budget has not been implemented effectively.
An interim budget, or Vote on Account, is a budget meant for three or four months before a new government is formed after the Lok Sabha elections.
In the past, some governments had made use of the interim budget to make important announcements, however, an interim budget cannot be converted into a full budget.
This is because the outgoing government has to present a Vote on Account, which is essentially taking permission from Parliament to run the expenses of the government for the next few months.