The Union Finance Ministry is expected to release the single volume Economic Survey for 2021-22 on January 31, 2022. This year's Economic Survey will likely project a growth rate of around 9 per cent for the next financial year i.e. FY22-23.
Last year, Economic Survey for 2020-21 had projected a GDP growth of 11 per cent during the current fiscal year which is coming to an end on March 31, 2022.
What is the Economic Survey?
The Economic Survey is an annual financial document that reviews the economic development in India over the past financial year by analysing and providing detailed statistical data of all the sectors-industrial, agricultural, industrial production, employment, prices, exports, among others. It also analyses trends in other factors that have an impact on the Indian economy such as money supply and foreign exchange reserves.
The Economic Survey is released a day before the Union Budget is presented in the Parliament. This year, Finance Minister Nirmala Sitharaman will present the Budget 2022 in Parliament on February 1.
The Survey is prepared by the Economics Division of the Department of Economic Affairs of the Finance Ministry under the overall guidance of the Chief Economic Adviser (CEA). It is only released after it is approved by the FM.
However, this year the Economic Survey is being prepared by the Principal Economic Advisor and other officials in absence of the Chief Economic Advisor (CEA). The previous CEA KV Subramanian had completed his three-year term as CEA on December 6 last year.
Why is Economic Survey significant?
The Economic Survey is regarded as the flagship annual document of the Union Ministry of Finance. It is also seen as the report of the Union Government for the financial year under review.
The Economic Survey provides a summary of all the economic development across the country that happened in a particular financial year. Apart from analysing the macroeconomic situation of the country over the past financial year, it also provides an outline for the next financial year.
The survey maps out a roadmap for India's economy going into the next financial year. It provides detailed reasons and justifications for why it believes the government should enact certain economic reforms for managing the economy.
When was the first Economic Survey of India presented?
The first Economic Survey was tabled in the year 1950-51. Up to 1964, it was presented along with the Union Budget. From 1964 onwards, it has separated from the Budget.
Why is the Economic Survey presented before the Budget?
As the Economic survey reviews the overall performance of the economy during the year, it helps in giving a better understanding of the Union Budget. The survey primarily helps to comprehend the country's priority for the next financial year and what sectors would need more emphasis in the Union Budget. The Economic Survey was de-linked from the Budget in 1964 and unveiled in advance in order to provide a context of the latter.
What do the Economic Survey documents contain?
The Economic Survey consists of two parts-- one includes the economic challenges the country is facing and the second is the analysis of the year gone by.
Is the govt bound to present the Economic Survey?
The government is not bound to present the Economic Survey as it nowhere mentioned in the Constitution. However, it is now part of the government's practice to present the survey every year before the budget.
The Economic Survey is released a day before the Union Budget is presented in the Parliament.The survey's document is available in PDF form on the finance ministry's website--finmin.nic.in or on the website particularly designed for the Union Budget--indiabudget.nic.in.
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