Budget 2019: What Is Economic Survey? Here Are 5 Things To Know
The Economic Survey, which is released ahead of Budget, summarises the annual economic development in the country. It facilitates a better appreciation of the mobilisation of resources and their allocation in the Budget. The government is due to present the interim budget in Parliament on February 1 this year. That will mark the last budget before the general election due by May this year. From economists to common public, all eyes remain on Budget announcements for any signs of changes in policy in the coming period.
Here are 5 things to know about Economic Survey:
1. The Economic Survey analyses the trends in agricultural and industrial production, infrastructure, employment, money supply, prices, imports, exports, foreign exchange reserves and other relevant economic factors which have a bearing on the Budget.
2. It is presented in the Parliament ahead of the Budget for the ensuing year.
3. The flagship document of the finance ministry, the Economic Survey, provides detailed statistical data covering all aspects of the economy.
4. For a better appreciation of the impact of government receipts and expenditure on the other sectors of the economy, it is necessary to group them in terms of certain economic magnitudes, for example, how much is set aside for capital formation, how much is spent directly by the government and how much is transferred by the government to other sectors of the economy by way of grants, loans, etc. This analysis is contained in the Economic and Functional Classification of the central government Budget which is brought out separately.
5. The Economic Survey usually provides policy perspective for the Union Budget.
