What you’ve read is an important news. Finance Minister Arun Jaitley made this announcement at a media event.

Before I explain what this news means, let’s understand what an interim Budget is in the first place.

An interim Budget refers to the budget of a government that is undergoing a transition of power. These budgets are common in democracies where one political party (or a coalition) is voted out of power and another political party (or coalition) is brought into power.

Usually, interim budgets are merely election rhetorics. These are not the budgets wherein the government will announce any new tax sops or new social schemes. It will more-or-less be the government talking about its achievements in the past year and how it will finance the next few months.

The reason for the same is that the interim budget will be in effect only until the incumbent government holds office. Once the new government takes over, it will announce its own policies and tax structures. Thus, it makes no practical sense for any government to announce any blockbuster changes to the Budget merely a few months before another government comes to power.

However, with Finance Minister Arun Jaitley’s comment that the interim Budget may go beyond vote-on-account, it seems likely that the government is treating the upcoming budget like a full-year budget.

This means that the government may move from election-year convention to meet the challenges that the Indian economy is facing.

While Finance Minister Jaitley said that it is convention that election-year Budget be an interim Budget (and hence, no important financial proposals), he added that the larger interest of the nation dictates what will be a part of the interim Budget.