The Economic Survey 2020 will be tabled in the Parliament on Friday, paving way for the announcement of the Union Budget 2020 a day after by finance minister Nirmala Sitharaman. The Economic Survey of India is an annual document presented by the government mainly to review the state of the economy in the previous one year, while throwing light on its short-to-medium term prospects.
Why is it significant?
The Economic Survey document is equally, if not more, important than the main Union Budget as it not only lays the premise for key policy decisions that need to be taken to take the economy forward but also assesses the impact of the previous decisions through detailed statistical data.
Who prepares it?
The Economic Survey is prepared by the Economic Division of the Department of Economic Affairs (DEA) in the Union finance ministry under the overall guidance of the chief economic adviser (CEA). The final version of the document is scrutinized by the finance secretary and then finally approved by the finance minister.
What information does it provide?
The Economic Survey is divided into three parts. The first and the most important part gives an overview and opinion of the CEA on key issues pertaining to the economy, which can give a peak into the government’s stance on the financial state of the country. The second part comprises data and figures on different sectors of the economy provided by their respective departments and ministries. And the third part deals with national income, production, employment, inflation, balance of trade and export-import trade, among other macro statistics covering all aspects of the economy.
In the past, the Economic Survey has sometimes gone beyond numbers and data to give weight to some important issues -- like the effect of climate change and gender-gap on the overall economy. For instance, the Economic Survey for 2018-2019 was pink in colour to highlight the need of gender-neutral policies.
Some interesting facts
The first Economic Survey of India was presented in 1950-51. Till 1964, the document was presented along with the Union Budget. But, 1964 onwards, it was separated and presented prior to the budget announcement.
Also, the government is not constitutionally bound to present the Economic Survey. The practice has been adopted over the time due to the importance and significance of the document.
In fact, even the recommendations of the survey are not binding on the government and can be rejected fully.
Because of its detailed assessment, the Economic Survey is a popular read among researchers, policy makers and students among others. And a copy of the document can always be bought from several online bookstores as well.
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