Budget 2026: What is a mini budget & why is it presented?

Union Budget 2026 is approaching, and everyone is eyeing the new taxation and expenditure changes. Finance Minister Nirmala Sitharaman will reveal the new financial roadmap of the Indian economy on Sunday, February 1, at 11 AM. 

The Union Budget is often seen as a once-a-year financial event, but India’s budgetary system includes an important variation as well. The Mini Budget, formally known as the Interim Budget. It reflects how fiscal policy adapts to democratic realities.

What is a mini budget?

A Mini Budget is a temporary financial statement presented when a full Union Budget cannot be laid out. It is usually presented in an election year. Its purpose is to ensure the smooth functioning of the government by seeking Parliament’s approval for essential expenditure through a Vote on Account. Unlike a full Budget, it avoids major tax changes, new schemes, or long-term policy commitments, leaving such decisions to the incoming government. In essence, a Mini Budget maintains fiscal continuity while respecting democratic norms during political transitions.

Who presented India’s first mini budget?

India’s first Mini Budget was presented in 1952 by C.D. Deshmukh, the country’s first Indian Governor of the Reserve Bank of India and then Union Finance Minister. The timing was significant as India was preparing for its first general elections, and the government required parliamentary approval to continue essential spending without making long-term commitments that could bind an incoming administration.

Why was a mini-budget needed?

In a democracy, major economic decisions are expected to reflect the elected government's mandate. With elections approaching, the outgoing government limited itself to an Interim Budget, which only focused on maintaining administrative continuity rather than announcing new policies. This ensured that the next government would have full freedom to shape economic priorities.

What does a mini budget contain?

Unlike a full Union Budget, a Mini Budget:

 - Seeks approval for essential expenditures through a Vote on Account

- Updates fiscal numbers and revenue estimates

- Continues existing schemes and commitments

- It avoids major tax changes, large policy reforms, or ambitious spending announcements.

Are mini budgets still relevant today?

The framework introduced by C.D. Deshmukh in 1952 set a lasting precedent. Even today, Interim Budgets are presented in election years to balance fiscal responsibility with democratic ethics.