Union Budget 2024: What is Economic Survey and why it is important

Budget 2024: The Economic Survey is the official report card of the country's economy and is tabled in Parliament by the finance minister a day before the presentation of the Budget

Budget 2024: Finance Minister Nirmala Sitharaman will present the Union Budget on February 1, 2024. While the Budget is of great significance, the Ministry of Finance (MoF) also presents another important document before the Parliament a day before the presentation of the Union Budget. This document, known as the Economic Survey of India, is an annual report that provides an overview of the Indian economy for the preceding year.

Let's take a look at what Economic Survey is and why it is important.

Union Budget 2024: What is Economic Survey?

The Economic Survey of India is a flagship document that is presented before the Parliament every year ahead of the Union Budget. This document essentially reviews the development of the country's economy over the previous fiscal year, summarises the performance of major development programmes of the government, highlights the government's policy initiatives, and provides an outlook of the prospects of the Indian economy in the short to medium term.

What is the importance of Economic Survey? 

The Economic Survey of India is of great significance as it helps the government in analysing the performance of various sectors such as agriculture, services, industries, public finance, and infrastructure. This is then useful in formulating economic strategies for the coming year. The Economic Survey also assists policymakers in identifying the major impediments to economic growth.

When was the first Economic Survey presented?

The first Economic Survey of India was presented in 1950-51 as a part of the Union Budget. However, since 1964, the Economic Survey has been decoupled from the Budget presentation. Since then, it has become customary to release the Economic Survey just a day prior to the presentation of the Union Budget.

Who prepares the Economic Survey?

The Economic Survey is prepared by the Chief Economic Advisor (CEA) under the Ministry of Finance (MoF), who is appointed by the prime minister. Currently serving as Chief Economic Advisor of India is Dr V Anantha Nageswaran.

What is included in the Economy Survey?

The Economy Survey includes the state of India's economy in the current fiscal year i.e. 2023-24.

The survey is divided into two parts: Part A and Part B. The first part usually consists of the major economic developments in the year as well as a broad review of the economy. Meanwhile, the second part covers specific topics such as social security, poverty, education, healthcare, human development, and climate.

Insights like India's GDP growth outlook, inflation rate and projection, forex reserves, and trade deficits are also included in the Economy Survey.

How to access Economic Survey?

The survey can be accessed and downloaded from 'www.indiabudget.gov.in/economicsurvey '. It will be available in the public domain once it has been presented in the Parliament.

What did last year's Economic Survey include?

The Economic Survey for 2022-23 presented in Parliament said that the economy will likely grow 6.0-6.8 per cent in 2023-24, with a baseline real GDP growth rate of 6.5 per cent, owing to a rebound in private consumption, higher capital expenditure, strengthening of corporate balance sheets and near-universal vaccination coverage, enabling spending on contact-based services.