Why is Economic Survey relevant before the Union Budget?

Economic Survey 2022: Finance Minister Nirmala Sitharaman today tabled the Economic Survey for 2021-22 in Lok Sabha. It was tabled in the Parliament soon after the President’s address to both Houses of Parliament. 

The Economic Survey is an annual report card of the country’s economy which examines the performance of each and every sector and then suggests future moves. Every year the Economic Survey is presented by the Finance Minister just a day before the budget presentation.

This annual document is prepared by the Ministry of Finance under the guidance of the Chief Economic Advisor (CEA) and it provides a summary of annual economic development across the country during the particular financial year.

What Is Economic Survey?

It is an annual document related to the economy and presented by the Finance Ministry a day before the Budget.

The report examines the performance of each and every sector and then suggests future moves to the Centre.

This annual document is prepared by the Ministry of Finance under the guidance of the Chief Economic Advisor.

Economic Surveys have a particular theme every year and last year the theme was saving lives and livelihoods.

For 2017-18, the Economic Survey, which consists of two parts, was pink as the theme was women empowerment.

One part includes the economic challenges the country is facing and the second is the analysis of the year gone by.

Why is Economic Survey Significant?

The Economic Survey is the projection of the Gross Domestic Product (GDP) for the next fiscal.

The Economic Survey contains crucial insights into the country’s economic condition.

It carries significance as it reviews the economic development of the country over the past financial year.

The Economic Survey analyses and provides detailed statistical data of all the sectors of the economy.

This data includes industrial, agricultural, industrial production, employment, prices, exports, among others.

It helps in giving a better understanding of the Union Budget by comprehending the country’s priority.

The survey helps understand the priority for the next financial year and which sectors need more emphasis.

Who prepares the Economic Survey?

The Economic Survey document is usually prepared by the Chief Economic Advisor (CEA). 

This year it was done by the Principal Economic Adviser and other officials as the post remained vacant.

Chief Economic Advisor Krishnamurthy Subramaniam’s term ended in December 2021.

The Economic Survey has been presented in two volumes in the past few years.

The practice started since Arvind Subramaniam took over as CEA and was continued by his successor KV Subramaniam.