Economic Survey and Union Budget 2024: Finance Minister Nirmala Sitharaman is set to announce the government’s Union Budget 2024 next week, on July 23. This is her sixth full Budget and comes after the NDA coalition won majority in the 2024 Lok Sabha Elections which concluded in June.
Final stages of preparation for the Budget announcement have begun with the Halwa ceremony commencing at the Finance Ministry’s North Block on July 16. The halwa ceremony is performed before the ‘lock-in’ process of officials involved in the budget preparation, as per the ministry. The ceremony, has Sitharaman serve officials and staff involved in budget preparation with the traditional sweet and then all are locked inside the basement of the ministry building to ensure there is no leakage of the budget document.
However, before the Budget announcement, is another key document that will be released a day ahead on July 22 (Monday) — the Economic Survey. We explain the significance of the Economic Survey 2024, what it covers and how it differs from the Union Budget.
What is the Economic Survey?
The Economic Survey is a comprehensive review or annual report of Indian economy during the closed financial year. Prepared by the Economics Division of the Department of Economic Affairs of the Finance Ministry under the guidance of the India’s Chief Economic Advisor (CEA).
This year’s document will be released by CEA V Anantha Nageswaran on July 22, a day ahead of the Budget announcement.
It functions as a summary of the government’s economic performance, major developmental programmes, and policy initiatives; besides also providing an outlook for the upcoming financial year.
The Economic Survey document consists of two parts — the first part or Part A includes the country’s economic developments and challenges and a broad review of the economy; and second Part B, analyses the past financial year over specific topics such as social security, poverty, education, healthcare, human development, and climate.
Why is the Economic Survey Significant?
The Economic Survey document is a comprehensive review of India’s development over the past financial year — based on analysing and providing detailed statistical data of all the sectors, industries, agriculture, employment, prices, and exports among others.
It also helps in giving a holistic view ahead of the Budget by providing a “priority list” for the next financial year and what sectors would need more allocation, policy support and government programmes.
The Economic Survey is the most authoritative and comprehensive analysis of the economy that is conducted from within the Union government. However, recommendations and assessment in the document are not binding on the Union Budget.
“The document serves the purpose of stock-taking. Further, it holds significance as it acquaints citizens with the state of the economy and informs them of key economic decisions of the government which have a bearing on their lives,” Nageswaran wrote for Mint.
“The publication reviews the overall economic development over the past financial year by analysing and providing detailed statistical data on all aspects and sectors of the economy, ranging from industry, agriculture and services to the external sector, financial sector, prices, physical and social infrastructure, etc. While each ministry/department/regulator has its annual report, which offers an overview of their respective activities over a year, the Economic Survey pulls them together in one ‘master’ document. It serves as a go-to resource for many,” he noted.
When is the Economic Survey Presented?
This year the Economic Survey was not presented on January 31, as is the norm, due to the general elections. As per the Parliamentary convention the incumbent government is not supposed to present the Economic Survey with the Interim Budget presented in the election year.
Thus, the Survey document was pushed back to July to align with the full Budget being presented post the elections.
How is Economic Survey Different from Budget?
The Union Budget is an annual financial statement from the Central Government which outlines its proposed expenditures and revenues for the upcoming fiscal year (FY2024-25) — from April 1, 2024 to March 31, 2025.
While the topics covered may be similar to the Economic Survey, there are key difference between the two:
- The Economic Survey is released ahead of the Budget, providing a complete economic overview of the past year with non-binding suggestions for the financial year ahead. But the Budget outlines the government’s achievements of the past financial year and outlines goals and allocations for the financial year ahead.
- The survey document consists of analysis, data, research and recommendation based on the past financial year, while the Budget aims to meet requirements for policies, allocations and plans for the financial year ahead.
- The Survey serves as a detailed statistical report for journalists, educators, researchers and students, while the Budget is more broad in the sense that it impacts the common everyday man and corporates alike.