An interim Budget is created by the Finance Ministry of the government that’s in power before the elections.

An interim Budget refers to the budget of a government that is undergoing a transition period. 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.

Two different governments will have different plans to maintain fiscal deficits and hence, the incumbent government’s budget is cut short and a new budget is created by the new government in power. The interim Budget helps the government continue its daily functioning by spanning the transition time between the old government leaving office and the new office assuming one.

As we head in to general election in May 2019, the Narendra Modi-led NDA government will be presenting its interim budget as the new government will announce its own budget post elections.