Economic Survey and Union Budget 2024: Finance Minister Nirmala Sitharaman is scheduled to present the government’s Union Budget 2024 next week on July 23. This will be her sixth budget and will be presented after the NDA coalition won a majority in the 2024 Lok Sabha elections that ended in June.
The final phase of preparations for the budget presentation began with a halwa ceremony at the North Wing of the Ministry of Finance on July 16. According to the ministry, the halwa ceremony will take place before the “lock-in” process of officials involved in the budget preparation. The ceremony will see Sitharaman serve traditional sweets to officials and staff involved in the budget preparation, after which they will lock everyone in the ministry’s basement to ensure that there is no leakage of budget documents.
Get cash in minutes!
Apply instantly for the best personal loan with lowest interest rate
But before the Budget announcement, there is another important document – the Economic Survey – that will be released on Monday, July 22. Here we explain the importance of the Economic Survey 2024, what it contains, and how it differs from the Union Budget.
What is an Economic Survey?
The Economic Survey is a comprehensive review or annual report of the Indian economy during the ended financial year. It is prepared by the Economic Affairs Division, Department of Economic Affairs, Ministry of Finance under the guidance of the Principal Economic Adviser (CEA) of India.
This year’s document will be released by CEA V Anantha Nageswaran on July 22, a day before the budget presentation.
It serves as an overview of the government’s economic performance, major development programmes and policy initiatives, and also provides an outlook for the coming financial year.
The economic research document consists of two parts. The first part or Part A contains the country’s economic developments and challenges and a broad review of the economy. The second part B analyses the past financial year on specific topics such as social security, poverty, education, healthcare, human development and climate.
Why is economic research important?
The Economic Survey document is a comprehensive review of India’s development during the past financial year based on analysing and providing detailed statistical data on all sectors, industries, agriculture, employment, prices, exports etc.
It also helps provide a holistic view ahead of budget preparation by providing a “priority list” for the next financial year and indicating which sectors require further allocations, policy support and government programmes.
The Economic Review is the most authoritative and comprehensive economic analysis conducted within the Federal Government, however the recommendations and assessments within the document are not binding on the Federal Budget.
“The document serves a summary purpose. Moreover, it is significant in keeping the public informed of the state of the economy and major economic decisions of the government that will affect their lives,” Nageswaran wrote in Mint.
“The publication reviews the overall economic development for the past financial year by analysing and providing detailed statistical data on all aspects and sectors of the economy, from industry, agriculture and services to external sector, financial sector, prices, physical and social infrastructure and more. While each ministry/department/regulatory agency has its annual report providing an overview of their respective activities for the year, the Economic Survey brings them together in one ‘master’ document, which serves as the go-to resource for many,” he pointed out.
When will the Economic Survey be released?
Due to the general election this year, the Economic Survey was not released on January 31 as usual. As per parliamentary practice, the incumbent government is not supposed to release an Economic Survey along with the interim budget presented in an election year.
The research paper has therefore been postponed to July in line with the full budget to be presented after the election.
What is the difference between an economic survey and a budget?
The Union Budget is an annual financial statement from the central government that outlines proposed expenditure and revenue for the coming financial year, which runs from April 1, 2024 to March 31, 2025 (Fiscal Year 2024-25).
Although the topics covered may be similar to economic research, there are important differences between the two.
The Economic Survey is released ahead of the Budget and provides a complete overview of the economy over the past year and non-binding proposals for the upcoming financial year. The Budget, on the other hand, provides a summary of the government’s achievements in the past financial year and outlines the goals and allocations for the upcoming financial year. The Survey document consists of analysis, data, research, and recommendations based on the past financial year, while the Budget aims to meet policy, allocation, and planning requirements for the upcoming financial year. The Survey serves as a detailed statistical report for journalists, educators, researchers, and students, while the Budget is more far-reaching in the sense that it affects both the general public and businesses.
36 million Indians visited our site in a single day and it has become the undisputed platform for Indian General Election Results. Check here for the latest updates.
Topics you may be interested in
Source link
