The Economic Survey presented ahead of the budget, is basically a summary of the annual economic development in the country throughout the year. It is the flagship annual document of the Ministry of Finance and reflects an allocation of resources in the Budget. The government will present Budget 2021 on February 1 this year. Last year, the Economic Survey 2019–20 was presented during the Budget session in the parliament on January 31 by Finance Minister Nirmala Sitharaman and prepared under Krishnamurthy Subramanian, the Chief Economic Advisor to the Government of India. Economic surveys are prepared under the guidance of the Chief Economic Advisor to the government. Economists and the common public are eyeing budget announcements this year for any signs of relief in policy changes amid the ongoing COVID-19 crisis.
Here are the top five significant things to know about the Economic Survey:
1. The Economic Survey analyses trends in money supply, infrastructure, agricultural and industrial production, employment, prices, exports, imports, foreign exchange reserves as well as other relevant economic factors that have a major focus on the Budget.
2. The flagship document of the Finance Ministry provides detailed statistical data covering all aspects of the economy.
3. The Economic Survey is presented in the Parliament ahead of the Budget for the developing year.
4. A proper analysis is presented in the Economic and Functional Classification of the central government Budget, which is brought out separately. Economic magnitudes are grouped in the economic survey, such as how much is set aside for capital formation, how much is spent directly by the government, how much is transferred by the government to other economic sectors by way of grants, loans, etc. This results in a better appreciation of the impact of government receipts and expenditure on the other sectors of the economy.
5. The data and analysis of the Economic Survey usually provides a policy perspective for the Union Budget.