The word ‘interim’ means in the intervening time. Thus, an interim budget is a budget for a specific intervening time.

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.