What Is Economic Survey And Its Significance?

by Shatakshi Gupta

A document is presented in Parliament before the budget is presented, it is called the Economic Survey. It is the one-liner definition of economic survey. But, what is an economic survey?  How important is it? Let us see in this article.

What is this economic survey?

We live in a country where the number of middle class people is very high. Usually in our homes a diary is made which keeps full accounts of expenses. After the end of the year, when we look, how much we spent? How much we saved? Based on this interpretation we decide how we have to spend in the coming year. How much to save? And other financial decisions we make on this.

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Similarly, Economic survey is just like the diary of our house. This shows the state of our country’s economy? The Economic Survey contains the accounts of the past year and the suggestions, challenges and solutions for the coming year. The Economic Survey is presented one day before the budget.

Who prepares an economic survey?

 Department of Economic Affairs under the Ministry of Finance prepares an economic survey under the supervision of the Chief Economic Advisor. The CEA doctor at present is Krishnamurthy Subramanian. The first economic survey was presented in 1950-51. Till 1964 it was introduced along with the budget. However, it was later introduced a day before the budget. However, this time the Economic Survey is presented two days before the budget.

Source: ANI News

Why is an economic survey necessary?         

This is necessary in many ways.  The Economic Survey in a way acts like a direction for our economy. Because this shows how our economy is doing and what we need to do to improve it? The economic survey shows the trend of the economy. Based on this, suggestions are made to the government. As suggested in last year’s Economic Survey, if India is to become a $ 5 trillion economy by 2025, $ 1.4 trillion needs to be spent on infrastructure.

Is it necessary for the government to table it in parliament?

No, it is not necessary. The government is not obliged to table the Economic Survey and accept the suggestions or recommendations made in it. If the government wants, it can reject all the suggestions given in it. Nevertheless, it is important because it gives an account of the economy of the previous year.

Economic survey comes in two volumes

Source: ANI News

Earlier economic survey was prepared in a single volume.  However, from 2014–15 it was introduced in two volumes. The first volume usually focuses on the challenges of the economy and the second volume reviews all the specific sectors of the economy. Apart from this comes statistical appendix, which contains many types of statistics regarding Indian economy.