What Is Economic Survey? What Importance Does It Hold?

An economic survey is a document published every financial year a day before the union budget is offered in both the houses of the parliament.

Prepared under the guidance of the Chief economic advisor, the economic survey gives an idea about the economy’s rate of growth in the past financial year. It is entirely dependent on the economic condition of the country.

What is an Economic Survey?

The economic survey has statistical data regarding all the sectors of the economy. The finance ministry prepares it to review the performance of government in every sector of the economy. It tells about the development rate of the agriculture, manufacturing, industrial, and educational sectors to name a few.

The economic survey reviews the vital initiatives taken by the government and compares its performance with the previous situation for both the short and long term. It also offers a slight peak into the current position of the economy.

In the past years, the economic survey has been given out in the house of parliament in two volumes. The economic survey of 2018-19 was one such example. The first volume had a detailed analysis and research regarding the Indian economy, On the other hand, the second volume had an explanation of all the major sectors of the economy and their development in the financial year. 

History of Economic Survey:

Although it is not a rule to present the economic survey in the parliament, it is like a ritual to present it in the house of parliament. Here is a brief history of how the economic survey started:

The economic survey until 1964 was presented along with the union budget. It got discontinued later to give a better insight into the proposals of the union budget.

Later in the financial year 1950-1951, the economic survey was presented individually in the house of parliament.

Before, the government used to present the railway budget first, then the economic survey, and later the union budget.

But with time, due to the rise in the infrastructure, the government discontinued the railway budget and decided to give it adjacent with the union budget after they gave out the economic survey.

Interestingly the economic survey is also a way to focus on many social issues. The 2018 economic survey was presented by Arvind Subramanian, then CEA presented it in the colour Pink to focus on gender equality.

The significance of the Economic Survey

The economic survey holds a lot of significance in the Indian economy. Although it is not a binding document to the government, it is still presented due to its importance. It has become an integral part of the union budget over time making it impossible to ignore.

The economic survey gives the people a complete idea about the development of each sector of the economy. The survey shows the economic growth of each sector. It gives out data on the growth or decline of any in any sector and justifies the different reasons for the decline. 

The survey also gives a detailed analysis of the money supply in the market. It also holds importance because it is easy to be understood by the common people. 

It gives a brief idea to people on what the union budget holds for them. It also gives a chance to the members of the parliament to give feedback on the work done by the government in the last fiscal year which helps the government make any changes in the budget if absolutely necessary.

In all the economic survey is a very vital element for the government as well as the people of the country and as time is passing it has become a very creative way to highlight various social issues going on in the country.

Written By - Priyasha