Budget 2019: DECODED - What is Economic Survey | Its importance

Budget 2019 and Economic Survey: A day before the presentation of General Budget by Finance Minister, Economic Survey is tabled in both the Houses of Parliament as an annual document that reviews developments in the economy over the previous 12 months. The survey analyses the prospects of the economy in the short to medium-term, besides summarising the performance of major development programmes and highlights the government's policy initiatives. The Economic Survey also facilitates better appreciation of the mobilisation of resources and their allocation in the Budget. It usually provides a policy perspective for the Union Budget.

As the Finance Minister Nirmala Sitharaman the Union Budget for 2019-2020 on July 5, the survey will also be tabled in both the Houses of Parliament a day before i.e, July 4. The other significant aspects of the annual document is given below:

1. The Economic Survey is prepared by the Department of Economic Affairs, which comes under the Finance Ministry, and it is released under the guidance of the Chief Economic Advisor (CEA).

2. Since it is a useful policy document, it contains policy ideas, key statistics on economic parameters and in-depth research on macro and sectoral trends. It is a policy guideline for the Union Budget, but the recommendations made by it are not binding on the government. Therefore, the policy recommendations presented in the document may not find their way into the Budget.

4. The government, however, considers the Economic Survey “useful for policymakers, economists, policy analysts, business practitioners, government agencies, students, researchers, the media, and all those interested in the development in the Indian economy”.

5. During the earlier Modi government, the Economic Survey was presented in 2015, 2016, 2017, and 2018. The 2015 survey is stated to have been inspired by the International Monetary Fund's World Economic Outlook, as it focused on the schemes like Jan Dhan, Aadhaar and Mobile, together known as JAM.