Finance Minister Nirmala Sitharaman will table the Union Budget 2026 in Parliament on February 1. The Budget shows how the Centre plans to raise revenue and spend public funds for the upcoming financial year. Before the Budget is placed in Parliament, the Finance Ministry presents the Economic Survey, which reviews the country's economic performance and trends.
What Is The Economic Survey?
The Economic Survey is a yearly report prepared by the Ministry of Finance, usually by the Department of Economic Affairs, with help from the Chief Economic Adviser (CEA). It looks at how the country's economy has performed over the past year and reviews important areas like agriculture, industry, services, exports, and jobs.
Unlike the Budget, which explains how the government will spend and collect money, the Economic Survey is more of a review and guide. It includes facts, figures, trends, and predictions for the year ahead. It also points out problems, achievements, and suggestions that the government can use while making the Budget.
Why The Economic Survey Is Presented Before Budget
The Economic Survey is usually presented in Parliament one day before the Union Budget. It is done this way for several reasons.
- The survey helps guide policy decisions. It reviews the economy and points out areas that need attention or reform. Policymakers can use this information to make decisions about taxes, spending, and economic changes in the Budget.
- The survey shows the achievements and challenges of the economy, which helps explain why certain policies or spending plans are proposed.
- The survey provides transparency. It allows Parliament and the public to understand the government's view of the economy, including growth trends, fiscal health, inflation, jobs, and sector performance.
- The survey encourages discussion. Experts, opposition members, and the media can debate the economy before the Budget is finalised. These discussions can sometimes influence the final Budget proposals.
Features Of The Economic Survey
- Covers macro-economic indicators like GDP growth, inflation, fiscal deficit, and current account balance.
- Examines sectoral performance, such as agriculture, industry, and services.
- Highlights social and developmental indicators, including health, education, and employment.
- Provides policy recommendations, often reflecting government priorities for reforms or investments.
- Uses a mix of data, charts, and narratives to explain complex economic trends in a simple format.
