Finance Minister Nirmala Sitharaman will announce the government's Union Budget 2024 next week on July 23. This is her sixth full budget since the NDA alliance won a majority in the 2024 Lok Sabha elections that ended in June. The last leg of preparations for the Budget announcement began on July 16 with the commencement of the Halwa ceremony at the Finance Ministry's North Block. The halwa ceremony is conducted before the 'lock-in' process of the officials involved in the budget preparation, the ministry said.
nonetheless the Economic Survey is another important document to be announced before the Budget announcement, which will be released a day before on July 22 (Monday). Let's take a look at the significance of the Economic Survey 2024, what it entails and how it differs from the Union Budget.
What is Economic Survey?
The Economic Survey is a comprehensive review or annual report of the Indian economy for the previous financial year. It is prepared by the Department of Economic Affairs, Ministry of Finance, under the guidance of the Chief Economic Advisor (CEA) of India.
It will be released by CEA V Anantha Nageswaran on July 22, a day ahead of this year's budget announcement.
It serves as a summary of the government's economic performance, major development programs and policy initiatives, and provides a perspective for the upcoming fiscal year.
The Economic Survey document has two parts - the first part or Part A includes a broad overview of the country's economic developments and challenges and the economy; the second part B analyses the last financial year on specific issues such as social security, poverty, education, healthcare, human development and climate change.
Why is the Economic Survey important?
The Economic Survey document is a comprehensive review of India's development in the last financial year - analysing and providing detailed statistics of all sectors, industries, agriculture, employment, prices, exports, etc.
It also helps in giving a holistic view ahead of the budget as to which sectors need more allocation, policy support and government programmes by providing a "priority list" for the next financial year.
When is the Economic Survey presented?
As the general elections are due this year, the Economic Survey will not be tabled on January 31. According to parliamentary convention, the current government is not required to present the Economic Survey along with the Interim Budget presented in an election year.
Thus, the survey document was moved to July to align it with the full budget to be presented after the elections.
How is the Economic Survey different from the Budget?
The Union Budget is the annual financial statement of the Government of India, setting out the expenditure and receipts for the coming financial year (FY 2024-25), from 1 April 2024 to 31 March 2025.
The main differences between the two are:
The Economic Survey has been released ahead of the Budget and provides a complete economic review of the previous year with non-binding proposals for the previous financial year. But the budget describes the achievements of the government in the last financial year and outlines the targets and allocation for the coming financial year.
The survey document contains analysis, data, research and recommendations based on the previous financial year, while the budget aims to meet the requirements of policies, allocations and plans.
The survey serves as a detailed statistical report for journalists, teachers, researchers, and students, while the budget is more broad in the sense that it affects ordinary people and corporates alike. Copy Paraphrase
