Union Budget 2025: As India prepares for the Union Budget 2025, the Economic Survey 2024-25 emerges as a key document, offering crucial insights into the country’s economic landscape. Scheduled for release on January 31, just a day before the budget, this in-depth report offers a thorough analysis of India’s economic performance and sets the stage for the government’s fiscal strategy and policy decisions. It provides a comprehensive overview of the country’s economic performance during the previous financial year and outlines the challenges and opportunities for the upcoming year.
The Economic Survey analyses trends in various sectors, including agriculture, industry, and services, and provides policy recommendations to promote economic growth and development.
Key Components of the Economic Survey:
- Economic Overview: A summary of the country’s economic performance, including GDP growth, inflation, and fiscal deficit.
- Sectoral Analysis: In-depth analysis of various sectors, including agriculture, industry, and services.
- Challenges and Opportunities: Identification of challenges facing the economy and opportunities for growth and development.
- Policy Recommendations: Suggestions for policy interventions to promote economic growth and development.
Who prepares the Economic Survey?
The Economic Survey is prepared by the Economic Division of the Department of Economic Affairs (DEA) within the Union Ministry of Finance. This process is overseen by the Chief Economic Advisor (CEA), currently V Anantha Nageswaran. Once the survey is finalised, it’s reviewed by the Finance Secretary to ensure its accuracy and relevance. After passing this scrutiny, the document receives final approval from the Finance Minister before being presented to both houses of Parliament, typically just before the Union Budget.
The Economic Survey is structured into two volumes: Part A provides an in-depth analysis of India’s economic performance, examining current fiscal trends, macroeconomic indicators, and the overall economic landscape. Part B delves into pressing socio-economic concerns, including education, poverty alleviation, climate change, and social security. Additionally, the survey presents key projections for the upcoming year, encompassing GDP growth, inflation rates, foreign exchange reserves, and trade deficits.
Its Role in Shaping the Budget
- Insights from the survey help policymakers set realistic revenue and expenditure targets for the budget.
- The survey highlights pressing economic challenges, such as unemployment, inflationary pressures, or global economic uncertainties. The Union Budget addresses these challenges through targeted policies and resource allocation.
- Based on the Survey, the government prioritises sectors requiring immediate intervention or incentivization in the budget.
- It outlines a fiscal roadmap, including revenue and expenditure trends, debt sustainability, and the fiscal deficit trajectory. This serves as a foundation for the budget’s fiscal planning.
- By analysing global economic trends, the survey helps align India’s policies with international developments. This ensures the budget is responsive to global challenges, such as trade disruptions or geopolitical tensions.
- The Economic Survey sets the tone for public and market expectations by providing a transparent overview of the economy. This helps in managing reactions to budget announcements.
In essence, the Economic Survey acts as a blueprint that informs and shapes the Union Budget, ensuring that fiscal policies are aligned with the nation’s economic realities and aspirations.
