Months before the 2024 Lok Sabha elections, Finance Minister Nirmala Sitharaman presented an interim budget in February to manage the government’s immediate financial needs. After the BJP-led NDA returned to power for a third term, she unveiled the comprehensive Union Budget for the financial year 2024-25 on July 23. While both budgets play a significant role in the nation's fiscal planning, their objectives and scope are different.

An interim budget is a temporary financial plan put forward in an election year, aimed at securing Parliament’s approval for essential government expenditures during the transition period until a new government assumes office. Its purpose is to maintain government functionality without disruption, but it does not include major policy changes or long-term reforms, as the new government may have different priorities. Unlike a full budget, an interim budget is not subjected to in-depth scrutiny or debate in Parliament. Instead, it mainly seeks a vote-on-account to cover immediate expenses and maintain financial stability during the transition.

In contrast, a full Union Budget is a detailed financial document that outlines the government's revenue sources, expenditure plans, and policy priorities for the fiscal year. This budget is presented annually and goes through extensive discussion and examination in both houses of Parliament. Significant announcements like new tax proposals, welfare schemes, and allocations for various ministries are made in the full budget. In 2024, the full Union Budget was presented by Nirmala Sitharaman on July 23, reflecting the government's spending and economic strategy for the coming year.

In essence, the interim budget serves as a short-term arrangement to cover government expenses during the election period, while the full budget sets the financial direction and policy framework for the entire year.