Budget 2023- What is Economic Survey, Its Significance and Who Prepares it?

Union Finance Minister Nirmala Sitharaman will present Budget 2023 on wednesday. After President Droupadi Murmu addresses the joint sitting of Parliament on Tuesday, the Union government will table the Economic Survey of India. What exactly is the Economic Survey? Why is it significant? Who makes it? Here's a quick explanation.

What is the Economic Survey and its significance?

The survey, also known as the union government's official report card, provides a road map for the country's economy and points the way forward. The Economic Survey summarises the country's annual economic development during the fiscal year.

The annual survey examines trends in infrastructure, agricultural and industrial production, employment, prices, exports, imports, money supply, foreign exchange reserves, and other economic and fiscal factors in India.

The survey also forecasts economic growth and provides justification and detailed reasons for why it believes the economy will grow faster or slower. It may also advocate for specific reform measures at times.

Who prepares the economic survey?

The Ministry of Finance creates the Economic Survey of India document. The document is specifically written by the Economic Division of the Department of Economic Affairs under the expert supervision of the Chief Economic Adviser.

When was the First Economic survey conducted?

The first economic survey was conducted as part of the budget documents in 1950-51. In the 1960s, it was separated from the Budget documents and presented on the day before the Union Budget.

Why is an economic survey prepared?

The Economic Survey reflects the state of the Indian economy and provides detailed statistical data on various sectors and how they performed the previous year. This data is critical for policymakers who use it to suggest strategies to help boost the economy.