As every government has a term of five years, the budget in the last year of a government being in power will be an interim budget. This is because a budget is a proposal of how the government intends to utilise its finances, but no government can propose changes for another government. The new government, up on coming to power, will have to pass its own budget.

Thus, with the Narendra Modi-led NDA government’s tenure ending on May 26, 2019, the government will be announcing an interim budget, i.e. a budget before the next government comes to power.

Usually, interim budgets are staid and unadventurous. These are not the budgets wherein the government will announce any new tax sops or new social schemes. 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.