The Union Budget is nearing -- and so is the Economic Survey which will be presented a day earlier on January 31. Just like the economy, the Economic Survey too has had a rich and colourful journey. Here's all you need to know about it.
What is the Economic Survey?
The Economic Survey offers more than just a snapshot of the various sectors of the economy and the overall economic scenario. It also highlights the prospects of the economy and suggests policy changes the government should explore.
Who prepares it?
The Economic Survey is prepared by the Chief Economic Advisor and his team and presented in both houses of Parliament a day before the announcement of the Union Budget.
Why is it presented before the budget?
The first Economic Survey was presented in the year 1950-51. Until 1964, it was presented along with the Union Budget. It was subsequently delinked and made a standalone exercise.
Is there a fixed format to present the survey?
No. Usually, it is presented in two volumes. The first gives an overview and the opinion of the CEA on key issues and solutions pertaining to the economy while the second consists of data from various departments and ministries, indicating the current state of the economy.
However, the new survey need not necessarily follow the same old format. As former Chief Economist Arvind Subramanian wrote, quoting poet T.S. Eliot, “For last year’s words belong to last year’s language. And next year’s words await another voice.”
The CEA who prepares it can even add his/her own colour to the document. For instance, the 2017-18 survey which was prepared by Subramanian was coloured in pink to underline its emphasis on gender issues.
He also peppered the survey with quotes and additional information, drawing from famous personalities like John Maynard Keynes, Aravind Adiga and Amitabh Bachchan.
Likewise, the current CEA Krishnamurthy Subramanian, who prepared the 2018-19 survey, decided to stay in step and used YouTube for the first time to present chapter wise videos.
Why is it important to you?
The main significance of the Economic Survey is to raise awareness among citizens about economic policies by providing data and analysis in a comprehensive way.
Is it mandatory for the government to follow the recommendations?
The most important part of the Economic Survey is the CEA's views on the present state of the economy and his insights on the government's plans and what is necessary for the growth of the economy.
However, it is not mandatory for the government to follow the recommendations. On many occasions, the proposals in the Economic Survey have not been reflected in the budget.
Where can you find the Economic Survey?
The document is available in PDF format on the website of the Ministry of Finance and the website specifically designed for the Union Budget. It can be downloaded free of cost from these websites. Alternatively, if you wish to have a hard copy, you can purchase it from most online bookstores.