The interim budget to be announced on Monday could bring some cheer to consumers and investors, as acting finance minister Pranab Mukherjee may use the opportunity to announce one more stimulus package in the form of targeted tax incentives.

Acting Finance Minister Pranab Mukherjee will present interim spending plans for the 2009/10 fiscal year starting April 1 but they may have a limited shelf life since nationwide elections in the world’s biggest democracy must be held by mid-May.

In its five budgets since 2004, UPA  has raised spending on health, education and rural employment but analysts say the economy has suffered due to a lack of economic reforms.

Normally, propriety would demand that an outgoing government not announce any major policy decisions or changes in the tax structure in an interim budget. But, given the global economic crisis and its impact on India, the UPA has the opportunity to argue that it cannot remain a silent spectator and allow things to drift for months till the new government can assume office.