Budget 2025: What is Economic Survey, Why is it Presented Before the Union Budget?

An important event for the whole nation, the Indian Union Budget lays out the government's financial roadmap for the next fiscal year, including the forecasts for revenue and expenditure, policy priorities, and economic policies. Before the Budget, an equally important precursor is presented which is known as the Economic Survey.

The Economic Survey is like a detailed report card that gives a thorough analysis of the country's performance in the last year. This survey considers various key indicators such as GDP, growth, inflation, employment and other trends. It also draws attention to new economic possibilities and concerns, providing a data-driven viewpoint that influences policy choices.

Understanding the Economic Survey is important since it provides significant data on the state of the economy as a whole, setting the stage for the Budget. It helps stakeholders that includes, legislators, corporations, investors, and citizens to anticipate the government's fiscal strategy and goals for the upcoming year and give policy suggestions with a reliable foundation.

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What is the Economic Survey?

The Economic Survey is prepared by the Department of Economic Affairs which is a divison of the Ministry of Finance. The purpose of the research is to offer a comprehensive assessment about India's economic performance in the previous financial year. It assesses significant economic indicators and offers statistics on major sectors, services, and agriculture, including:

• GDP Growth: It is a measure of the country's overall financial health and economic production.
• Inflation Rates: Purchase power is impacted by changes in the cost of goods and services, which are measured by inflation rates.
• Employment Trends: This survey also monitors unemployment rates, labor market conditions, and job creation.
• Fiscal Deficit: The difference between government revenue and expenditure is assessed in this survey. 

In addition to these fundamental indicators, this survey looks at progress in the social and infrastructure sectors as well as outside economic influences. 

The Economic Survey is typically structured into two sections: 

• Part A focuses on macroeconomic trends, fiscal developments, and sectoral performance. 
• Part B addresses socio-economic challenges such as poverty, healthcare, education, environmental concerns, and financial projections, including trade balance and foreign exchange reserves. 

More than just an assessment, the survey serves as a guiding document, offering policy suggestions to tackle economic challenges and support sustainable growth. Its insights are crucial in shaping the Union Budget, which follows its release.

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When and Where to Watch the Economic Survey?

The Economic Survey is traditionally presented a day before the Union Budget, and today, January 31, 2025, marks its unveiling. Finance Minister Nirmala Sitharaman is scheduled to present the Economic Survey in the Lok Sabha at 12 PM, followed by its presentation in the Rajya Sabha at 2 PM.

The presentation will be live-streamed on Sansad TV and the PIB India channels. Additionally, updates will be shared via the Ministry of Finance's Facebook page and their official X handle (@FinMinIndia). After its release, the Economic Survey can be downloaded from the India Budget website. The previous Economic Survey for the 2023-24 fiscal year was presented by Nirmala Sitharaman on July 22, 2024.

What is the History of the Economic Survey? 

In 1950–51, the first Economic Survey of India was introduced, initially as a component of the Union Budget documents. It was separated from the Budget in 1964 and has been presented separately ever since, usually during the Budget Session of Parliament, one day prior to the Union Budget. 

Why is the Economic Survey Presented Before the Union Budget?

The Economic Survey is presented before the Union Budget due to several reasons: 

• Detailed Economic Context: This survey offers a thorough assessment of the country’s economic landscape so that budgetary decisions can be made on current financial situations. 
• Identifying Key Issues: The Economic Survey helps analyse the economic trends and also various challenges such as unemployment and inflation. 
• Enhancing Policy Discussions – Lawmakers, economists, and industry stakeholders receive the survey in advance, allowing for well-informed debates and discussions before budgetary allocations are finalised.

Who Prepares the Economic Survey?

The Economic Survey is compiled by the Economic Division of the Department of Economic Affairs, under the leadership of the Chief Economic Advisor (CEA). It is typically presented by Nirmala Sitharaman just before the Union Budget. The CEA, along with a team of economists and analysts, collects data from various government departments, research bodies, and international organisations to create a detailed report. Once completed, the survey is presented in Parliament a day prior to the Budget announcement. After its presentation, the CEA usually holds a press conference to discuss the key findings and respond to any questions.

In conclusion, the Economic Survey is a cornerstone of India's fiscal architecture, offering a thorough assessment of the economy and guiding the Union Budget's formulation. Its presentation before the budget ensures that fiscal policies are informed, targeted, and responsive to the nation's economic needs. 

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