Ram Nath Kovind, India’s president, left, greets Nirmala Sitharaman, India’s minister of defense, during a swearing in ceremony for the prime minister and other members of the cabinet at the Presidential Palace in New Delhi, India. (Photographer: T. Narayan/Bloomberg)

Budget 2019: Finance Ministry May Retain Allocations Made In Interim Budget

The Finance Ministry has indicated that it will retain the interim budget allocations made to ministries and departments, in the final budget for the current financial year, to presented in the Lok Sabha on July 5.

In run-up to the Lok Sabha elections, the finance ministry came up with an interim budget in February, authorising government expenditure for a limited period.

With the new government in place now, a full-year budget will be presented by the Finance Minister Nirmala Sitharaman.

In a circular, the finance ministry also said it will only consider additional allocations towards "unavoidable commitments" for which funds have not been earmarked in the interim budget.

“Allocations projected in the Interim Budget 2019-20, will not be altered,” said the finance ministry circular.

Also read: What Should Be The Economic Priorities Of Finance Minister Sitharaman

However, if there are any requirement on account of unavoidable commitments that have not been fully provided for in the February budget, "Ministry/Department may propose the same for consideration for inclusion in the Regular Budget 2019-20, with suitable justification" by Friday, it added.

Sitharaman's budget team comprises Minister of State for Finance Anurag Singh Thakur and Chief Economic Advisor Krishnamurthy Subramanian.

The official team is led by Finance Secretary Subhash Chandra Garg, Expenditure Secretary Girish Chandra Murmu, Revenue Secretary Ajay Bhushan Pandey, Department of Investment and Public Asset Management Secretary Atanu Chakraborty, and Financial Services Secretary Rajiv Kumar.

In her budget, the 59-year-old Jawaharlal Nehru University alumnus, Sitharaman will have to address slowing economy, financial sector troubles like rising nonperforming assets and liquidity crisis in non-banking finance companies, job creation, private investments, exports revival, agrarian crisis and raise public investment without compromising on fiscal prudence.

The first session of the newly elected 17th Lok Sabha will be held from June 17 to July 26.

The Economic Survey for 2019-20 will be tabled on July 4, followed by the presentation of the budget on the next day.

Also read: India’s New Finance Minister Nirmala Sitharaman Has Her Work Cut Out