Interim Budget

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The Interim Budget is a financial statement that is presented by the government of India before the general elections. It is a statement of the government’s financial position and its plans for the coming year. The Interim Budget is usually presented in February or March, just before the general elections.

The Interim Budget is important because it gives voters an idea of what the government plans to do if it is re-elected. It also gives investors an idea of the government’s economic policies.

The Interim Budget for 2022-23 was presented by Finance Minister Nirmala Sitharaman on February 1, 2022. The budget focused on providing relief to the common man and boosting the economy.

Some of the key highlights of the Interim Budget include:

  • A direct tax relief of Rs. 1.5 lakh for individuals with an annual income of up to Rs. 15 lakh.
  • A 30% tax deduction for new manufacturing companies set up in India.
  • A 10% tax on long-term capital gains from equity investments.
  • A Rs. 6,000 per year pension for women aged 60 years and above.
  • A 3% interest subvention for loans taken by farmers for the purchase of tractors and other agricultural equipment.

The Interim Budget was well-received by the public and the markets. It is expected to boost the economy and help the government win the general elections.

Frequently Asked Questions

  1. What is the Interim Budget?

The Interim Budget is a financial statement that is presented by the government of India before the general elections. It is a statement of the government’s financial position and its plans for the coming year. The Interim Budget is usually presented in February or March, just before the general elections.

  1. Why is the Interim Budget important?

The Interim Budget is important because it gives voters an idea of what the government plans to do if it is re-elected. It also gives investors an idea of the government’s economic policies.

  1. What were the key highlights of the Interim Budget for 2022-23?

Some of the key highlights of the Interim Budget include:

  • A direct tax relief of Rs. 1.5 lakh for individuals with an annual income of up to Rs. 15 lakh.
  • A 30% tax deduction for new manufacturing companies set up in India.
  • A 10% tax on long-term capital gains from equity investments.
  • A Rs. 6,000 per year pension for women aged 60 years and above.
  • A 3% interest subvention for loans taken by farmers for the purchase of tractors and other agricultural equipment.
  1. What is the impact of the Interim Budget on the economy?

The Interim Budget is expected to boost the economy and help the government win the general elections. The direct tax relief and the tax deduction for new manufacturing companies are expected to boost investment and create jobs. The tax on long-term capital gains from equity investments is expected to attract more investors to the stock market. The pension for women aged 60 years and above is expected to help improve their financial security. The interest subvention for loans taken by farmers is expected to help them purchase tractors and other agricultural equipment.

  1. What is the impact of the Interim Budget on the markets?

The Interim Budget was well-received by the markets. The Sensex and the Nifty both rose by more than 2% after the budget was presented. The markets are expecting the Interim Budget to boost the economy and help the government win the general elections.

MCQs

  1. The Interim Budget is presented by the government of India before the:
    (A) General elections
    (B) State elections
    (C) Local body elections
    (D) None of the above

  2. The Interim Budget is a statement of the government’s:
    (A) Financial position
    (B) Economic policies
    (C) Both (A) and (B)
    (D) None of the above

  3. The Interim Budget is usually presented in:
    (A) February
    (B) March
    (C) April
    (D) May

  4. Some of the key highlights of the Interim Budget for 2022-23 include:
    (A) A direct tax relief of Rs. 1.5 lakh for individuals with an annual income of up to Rs. 15 lakh.
    (B) A 30% tax deduction for new manufacturing companies set up in India.
    (C) A 10% tax on long-term capital gains from equity investments.
    (D) All of the above

  5. The Interim Budget is expected to:
    (A) Boost the economy

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