Budget 2024: What will the market look for in Vote on Account?
General Elections. Union Finance Minister Nirmala Sitharaman while addressing CII Global Economic Policy Forum 2023 Summit on Thursday, December 7, said that the Union Budget 2024 scheduled to be presented on February 1 is unlikely to make any "spectacular announcements". “I don’t want to be a spoilsport, but the 1st February Budget is just a Vote on Account; a Budget to meet expenditure till the next government comes to power.
No spectacular announcements. You will have to wait till after the General Election," Sitharaman said. Also Read: Budget 2024: Upcoming Budget just a vote on account, says FM at CII Summit 2023 Unlike the full Budget, a Vote on Account contains just the government's expenses.
A vote on account is an advance grant to the government from the Consolidated Fund of India to cover short-term expenditure requirements. Before the General Election, the government seeks a Vote on Account to meet essential expenses. After the elections, the new government is responsible for presenting the full budget.
Notably, the vote on the account cannot impact the tax regime. Also Read: Budget 2024: What is Vote on Account? Significance and more… Experts do not expect big announcements in Vote on Account on February 1. They say the full Budget for the next financial year will come in July which will be a significant event for the market.
Deepak Jasani, Head of Retail Research at HDFC Securities pointed out that the Vote on Account cannot impact the tax regime. "A Vote on Account is merely an interim authorisation to spend money, as opposed to a full Budget that includes details of expenditures and receipts, including tax changes and government policies. Hence, we do not expect policy changes from the Vote on Account,"
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