Economic Survey 2023: On Wednesday, February 1, the Union Budget for this year will be presented. Finance Minister Nirmala Sitharaman will deliver the Union Budget. It will be intriguing to see how the government manages expectations and addresses the fiscal deficit targets in the last full Budget of being power.
What is Economic Survey?
The Economic Survey is an annual report that underscores the condition of different sectors of the economy and suggests reforms that should be undertaken to accelerate growth.
Significance of the Economic Survey
The Economic Survey projects the Gross Domestic Product (GDP) for the next financial year and further includes crucial insights into India's economic condition.
Who prepares the Economic Survey?
The Economic Survey is prepared by the Chief Economic Advisor (CEA), however, this time, the report was drafted by the principal economic adviser and other officials after Krishnamurthy Subramaniam's term ended in December 2021.
For the past few years, the Economic Survey has been presented in two volumes, but this year it is clubbed in a single volume.
Why is Economic Survey tabled a day before the Budget?
Since India's Independence in 1947, the Economic Survey was presented alongside the Budget, but was delinked in 1964 and was presented in advance, a practice that continues to date.
It is to be noted that it is not mandatory for the government to present the Economic Survey and the recommendations presented in the first volume are not binding on the government.
When was the Economic Survey presented for the first time?
The first Economic Survey of India was presented between 1950-51. Until 1964 the Economic Survey was presented along with the general budget of the country. Later, it started being presented a day before the budget.
The highlights from the Year 2022 Economic Survey are:
1- The Economic Survey has predicted 8 to 8.5% GDP growth in FY23 (April 2022 to March 2023). For the ongoing FY22, the GDP growth has been projected at 9.2%.
2- The total consumption is estimated to have grown by 7.0% in 2021-22 with significant contributions from government spending.
3- Agriculture and allied sectors are expected to grow by 3.9% in 2021-22.
4- The Services sector is estimated to grow by 8.2% in the ongoing financial year.
4- The Economic Survey 2021-22 details the state of different sectors of the economy as well as reforms that should be undertaken to accelerate growth.
5- The GDP contracted by 7.3% in 2020-21.
6- Furthermore, the Economic Survey focuses on supply-side issues to improve the resilience of the Indian economy.