No ‘spectacular announcement’ likely in February 1 budget, says finance minister
New Delhi: Finance Minister Nirmala Sitharaman on Thursday said the budget to be presented on February 1, 2024 would not have any “spectacular announcement” as it would be a vote on account in run up to the general elections.
“It is a matter of truth that February 1, 2024 budget that will be announced will just be a vote on account because we will be in an election mode. So the budget that the government presents will just be to meet the expenditure of the government till a new government comes to play,” she said.
Speaking at the CII Global Economic Policy Forum, Sitharaman said the country would be preparing for the Lok Sabha elections which are due in the summer of 2024.
Hence the February 1 budget, following the British tradition, is called vote on account.
“No spectacular announcements come in that time (in vote on account). So you will have to wait till after new government comes in and presents next full Budget in July 2024,” Sitharaman said.
On February 1, 2024, Sitharaman will present an interim budget for 2024-25 fiscal, beginning April 1, 2024, in the Lok Sabha.
The interim budget which is also known an a vote on account will allow the incumbent government to undertake expenditures till a new government is formed after general elections.
Levying border adjustment tax to meet green commitments morally wrong: Finance Minister said any move on imposition of cross-border adjustment tax by developed countries to meet their green commitments is morally wrong and goes against the interest of developing countries of ‘Global South’.
“The single mono-sided decision of imposition of border adjustment tax …the logic just goes against the concern of the Global South…
“But cross-border imposition (of tax) and that money going towards somebody else’s green agenda, if anything, is not moral at all,” Sitharaman said at the CII Global Economic Policy Forum.
“But cross-border imposition (of tax) and that money going towards somebody else’s green agenda, if anything, is not moral at all,” Sitharaman said at the CII Global Economic Policy Forum.
The minister said every country will need to generate resources to meet the green commitments made globally.
Her comments come in the backdrop of the European Union’s announcement to impose carbon tax on imports from certain sectors.
The CBAM (Carbon Border Adjustment Mechanism) or carbon tax (a kind of import duty) will come into effect from January 1, 2026, but from October 1 this year, domestic companies from seven carbon-intensive sectors, including steel, cement, fertiliser, aluminium and hydrocarbon products, will have to share data with regard to carbon emissions with the EU.
In her address, Sitharaman said the base energy requirements of a country cannot be filled by renewable energy sources, but it is possible to think in terms of spreading renewable energy in such a way that individual participation is ensured.
India is rapidly moving in the renewable energy space, particularly in solar, and is in talks with many countries for a grid connectivity across the world by the ISA members.
