Union Budget 2021: What is Economic Survey and why is it important? All you need to know
New Delhi | Jagran Business Desk: Finance Minister Niramala Sitharaman will present her third budget on February 1 in the Lok Sabha, with focus on reviving the growth in the aftermath of the pandemic. A day prior to the annual budget presentation, the Department of Economic Affairs of the Ministry of Finance will present the Economic Survey -- a flagship annual document that reviews the development in the Indian economy over the past fiscal year and presents a holistic preview of the Budget. The document holds an additional significance this year for it pertains to a year marked by the coronavirus pandemic and economic slowdown.
Ahead of the beginning of the Budget session, here's all you need to know about the Economic Survey:
The survey is prepared by the country's Chief Economic Advisor and tabled in both houses of Parliament a day prior to the budget presentation on January 31. As is customary, the current CEA Krishnamurthy Subramanian and his team will hold a press conference ahead of the budget presentation and discuss the document .
Why is it important?
Besides reviewing the development of the Indian economy over the past year, the document also summarises the performance on major development programs and highlights the policy initiatives of the central government. It also projects India's GDP growth in the next fiscal. For instance, the Economic Survey had projected the Indian economy will grow by 6 to 6.5 per cent in 2020.
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The projection, however, was disrupted following the outbreak of the coronavirus pandemic. For boosting growth, it had called for new ideas for manufacturing such as 'assemble in India for the world' which will create jobs. t also called for improving governance in public sector banks and the need for more disclosure of information to build trust.
The initial economic surveys were presented as part of the Union Budget itself. The government started the practise of presenting the Economic Survey a day prior to the budget only after 1964.
Posted By: Lakshay Raja