Budget 2024: Finance Minister Nirmala Sitharaman is scheduled to present the Union Budget on February 1, 2024. Since 2024 is an election year, an interim budget will be presented instead of a full budget. Alongside the Union Budget, the Ministry of Finance (MoF) presents another crucial document to the Parliament a day before the budget presentation – the Economic Survey of India. The Economic Survey is an annual report that offers an overview of the Indian economy for the preceding year. Let's look into what the Economic Survey is and understand its significance.
What is Economic Survey?
The Economic Survey is traditionally presented on January 31 each year, a day before the Union Budget. The Finance Minister presents the Economic Survey in Parliament. Serving as a crucial annual report from the Finance Ministry, it is often referred to as an account of the economic well-being of the country. It serves as a comprehensive review of the nation's economic development in the previous fiscal year. The survey provides insights into the economic performance of the nation over the past year and serves as a key foundation for the subsequent budget. It acts as a primary means through which the government communicates the economic state of the country.
The Economic Survey is presented in two parts. The first part provides information about the state of the Indian economy, while the second part contains details of key economic indicators.
What is included in the Economy Survey?
The Economic Survey is a report that provides information on the implementation of various government schemes. It highlights trends in economic growth, detailing the amount of investment in different sectors and presenting key economic indicators and sector-wise economic trends. The report aims to assess the economic situation of the country and offer insights into the direction of the economy in the upcoming fiscal year. It includes details of major economic figures and sector-specific trends, serving as an independent reference for understanding the economic policies of the government and their impact.
What is the importance of Economic Survey?
The Economic Survey of India plays a crucial role in assessing the performance of diverse sectors, including agriculture, services, industries, public finance, and infrastructure. By providing a comprehensive overview of the economic landscape, it aids the government in developing informed strategies for the upcoming year. Policymakers leverage the insights gained from the survey to identify key challenges and obstacles that may be hindering economic growth, allowing for targeted interventions and policy adjustments. Overall, the Economic Survey serves as a valuable tool for evidence-based decision-making and policy formulation.
Who prepares Economic Survey?
The Economic Survey is prepared by the Economic Division of the Ministry of Finance. It is a document that outlines the main economic adviser's perspective. Before its release, it requires approval from the Finance Minister. The Economic Survey is presented by the Finance Minister in the Parliament. Following that, the Chief Economic Adviser presents an overview of the current financial year.
