Budget 2021: What is Economic Survey? Here’s what you need to know

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Finance Minister Nirmala Sitharaman will present the Union Budget 2021 in the Lok Sabha on February 1. Sitharaman, who will present her third and Narendra Modi-led NDA government’s eight consecutive budget, is expected to roll out a plan to revive India’s economy post the pandemic.

Prior to the Budget, the Economic Survey of India will be released by the government on January 29, 2021. This document is submitted to both houses of parliament during the Budget session.

For anyone who doesn’t know the importance, relevance or need of the Economic Survey, read below to find out.

What is an Economic Survey and who presents it?

The Economic Survey of India is the flagship document of the Finance Ministry. It is presented by the Department of Economic Affairs in parliament. The survey reviews the growth of Indian economy over the last 12 months and highlights the expectations from the upcoming financial year.

This report gives an elaborate glance at the government’s key policy initiatives and its impact over the country’s overall performance. It also provides detailed statistical data of every aspect of the economy and analyses trends of relevant economic factors.

The document is presented by the Finance Minister and prepared under the guidance of Chief Economic Advisor (CEA). K.V. Subramanian is the current CEA to the central government.

Why is the Economic Survey important?

Besides analyzing the country’s overall economic performance in the previous year, Economic Survey puts a spotlight on the major policy initiatives taken by the government.  It also predicts India’s GDP growth in the upcoming fiscal year.

The data and trends observed in the Economic Survey often provide a rich policy perspective for the Union Budget. It also points towards significant gaps that Budget aims to fill in terms of investments, consumption, unemployment, etc.

What does the Economic Survey include?

The Economic Survey is released in two parts:

• Volume I: Includes conceptual and analytical issues
• Volume II: Talks about state of economy with focus on current issues and statistical data

The Economic Survey shall be presented in the lower house of parliament post the address by President Ram Nath Kovind.

It is important to note that for the first time since independence, Union Budget will go paperless this year. Due to the pandemic protocols, printing of the budget has been cancelled. Instead, soft copies of the budget will be made available to everyone.

Watch out for the Economic Survey on January 29 and the Union Budget on February 1.