1. Budget 2024: What is the Economic Survey? All You Need To Know

Budget 2024: What is the Economic Survey? All You Need To Know

blog author image

Upstox

blog verification badge

4 min read • Updated: January 23, 2024, 2:50 PM

Facebook PageTwitter PageLinkedin Page

Summary

As per Parliamentary convention, the Economic Survey is not presented by the incumbent government in an election year. The Economic Survey is presented by the new government that takes over after the Lok Sabha elections.

H20230910138642.JPG
Finance Minister Nirmala Sitharaman is set to table the Budget on 1 February.

Ahead of the Union Budget, the government releases another important document that gives an overall analysis of the country’s economy. It’s the Economic Survey, an annual report on the state of the economy.

The Economic Survey, released by the Chief Economic Advisor, is usually presented in the Parliament by the Finance Minister a day before the Union Budget.

The survey is prepared by the Economic Division of the Department of Economic Affairs under the Ministry of Finance. It provides an overview of the economy of the country.

The Economic Survey was introduced in 1950-51 and it was a part of the Union Budget. However, in 1964, it was demerged from the Budget.

What Is The Economic Survey?

The Economic Survey is a detailed yearly report about the state of the national economy in the financial year that’s going to end. It summarises all the major development projects, and initiatives undertaken by the government in the preceding fiscal year. Additionally, it outlines the various policy initiatives of the government and indicates sectoral growth trends.

The Economic Survey consists of two major parts-- A and B. Part A features details about the economic development and provides a broad review of the state of the economy. Part B of the Economic Survey is an analysis of the year gone by, covering areas like social security, health, education, climate, human development and poverty.

The Economic Survey used to be presented in just one volume, focusing on key economic areas including agriculture, service and manufacturing. However, from 2010-11 to 2020-21, it adopted a two-volume method before going back to a single-volume format in the last Budget.

The survey helps in better comprehension of the Union Budget by highlighting the country's priority and key areas to focus on during the upcoming financial year. It must be noted that the recommendations of the economic Survey are not binding on the Union Budget.

When Will the Economic Survey Be Presented This Year?

Finance Minister Nirmala Sitharaman is set to table the Budget on the floor of Lok Sabha on 1 February. While the Economic Survey is traditionally tabled in the Parliament a day before the Union Budget on January 31, this year it won't happen. As per Parliamentary convention, the Economic Survey is not presented by the incumbent government in an election year. The Economic Survey is presented by the new government that takes over after the Lok Sabha elections.

However, it is expected that the government may present a document similar to the Economic Survey, carrying a report on the state of India’s economy.

Key Highlights of Economic Survey 2022- 2023

  • The Economic Survey projected a growth rate of 6 to 6.8% in FY 2023-24.
  • The survey highlighted UNDP's 2022 report on the Multidimensional Poverty Index, which revealed that 41.5 crore people exited poverty in India from 2005-06 to 2019-20.
  • Private Investment in agriculture rose to 9.3%.
  • India committed to Net Zero Pledge to achieve a net zero emission target by 2070.
  • The budgeted expenditure by the central and state governments on the health sector was 2.1% of GDP in FY23 (Budget Estimates) and 2.2% in FY22 (Revised Estimates) against 1.6% in FY21.
  • Social sector expenditure (Centre and states combined) increased to ₹21.3 lakh crore in FY23 (BE) from ₹9.1 lakh crore in FY16.
  • Investment of ₹47,500 crore was made under the PLI schemes in FY22- 106% of the designated target for the year
  • UPI-based transactions grew 121% in value and 115% in volume terms, between 2019 and 2022.
  • The country's merchandise exports stood at $332.8 billion for April-December 2022.