New Delhi: The budget session of Parliament will begin with the customary presidential speech on January 31, followed by the presentation of the budget by Union Finance and Corporate Affairs Minister Nirmala Sitharaman on February 1.
The first Economic Survey was also presented along with the Union Budget in the backdrop of the adoption of the Constitution of India in January 1950. Till 1964, the document was issued during the time of budget. It was separated from the Union Budget to provide a better understanding of the budget proposals.
Just a day before the presentation of the budget, the Economic Survey usually prepared under the guidance of the Chief Economic Adviser (CEA) is released.
The Center is likely to present the Economic Survey in Parliament on January 31.
While the first part of the budget session will continue from January 31 to February 11, it will resume on March 14 and will go on till April 8. However, the second half will be subject to government exigencies.
This will be the 10th budget of the Narendra Modi-led BJP government since coming to power in 2014.
What is Economic Survey?
The Economic Survey generally sets the context for the Union Budget. Giving a preview of the trends across various sectors, the Economic Survey tracks the state of the economy over the past year. The major challenges expected and the way out are shown in the document.
Known as the flagship publication of the Ministry of Finance, the document is prepared by the Economic Division of the Department of Economic Affairs (DEA) under the guidance of CEA. Once the documents are ready, the survey has to be approved by the Finance Minister.
The Economic Survey over the years has been presented in two volumes. For example, in 2018-19, Section 1 focused on research and analysis of the challenges facing the Indian economy, while Section 2 provided financial year information covering all major sectors of the economy.
Ever since Arvind Subramaniam took over as CEA, it became a two-volume report. However, his successor KV Subramaniam continued the practice.
The Economic Survey for 2021-22 is expected to have only one section, due to the absence of a full-time chief economic advisor, reports the Times of India. This will mostly include data for the financial year across various industry verticals and will not include policy formulations that are part of the Core Volume-1 (CEA).
What is the importance of economic survey?
Considered as one of the important documents, it provides insight into the economic condition of the country. The Economic Survey takes into account key trends in money supply, infrastructure, agricultural and industrial production, employment, prices, exports, imports, foreign exchange reserves, among other economic factors that may have a bearing on the budget. The document also focuses on key concerns of the economy. It also reviews the allocation of resources in the budget.
It is interesting to note that in 2018 the Economic Survey presented by the then CEA Arvind Subramaniam was printed in pink to focus on the cause of gender equality. Its aim was to support women victims of violence and to emphasize greater gender equality. Apart from changing the color of the document, Subramaniam reshaped the entire document by making it more interesting with quotes and additional information.
Is it mandatory to submit Economic Survey?
This will be the third Economic Survey to be presented in the shadow of COVID-19. The government is not constitutionally bound to submit a survey or follow the recommendations of the survey. It is entirely up to the government whether it wants to choose or reject the suggestions listed in the document. The Center may not be obliged to submit the survey, but it is submitted because of its importance. The document is seen as the report card of the economy and CEA reforms are introduced to take the document forward through ideas.
The document can be accessed in PDF form on the website of the Ministry of Finance–finmin.nic.in or on the website specially designed for the Union Budget–indiabudget.nic.in.
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