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Explained: What is an Economic Survey And Why is it Important?
This year, the Economic Survey will be of particular significance as the country is trying hard to come out the coronavirus pandemic.
New Delhi: Ahead of Budget 2021 presentation, Union Finance Minister Nirmala Sitharaman will on Friday present Economic Survey 2020-21 in Parliament. Soon after the presentation of the Economic Survey, chief economic adviser (CEA) KV Subramanian will address a press conference at 2:30 PM to give further details. Moreover, the presentation of the Economic Survey 2020-21 will set the tone for this year’s Budget 2021.
What is the Economic Survey?
The Economic Survey presents a detailed report on the performance or state of the economy during the previous year, future challenges and the way forward. It is typically presented a day before the Union Budget. While the Budget and Economic Survey are usually tabled a day apart, this year it might be different.
According to updates, the Economic Survey 2020-21 will be presented in both the Houses of Parliament. Notably, the documents of Economic Survey 2020-21 comprise two volumes — Volume I and Volume II — and a statistical appendix.
The document of Economic Survey 2020-21details the country’s performance in the last one year. It also relays key challenges that lie ahead along with measures to deal with them. It essentially lays the groundwork for the presentation of Budget.
Moreover, the Economic Survey 2020-21 puts out economic growth forecasts, giving out detailed reasons why it believes the economy will expand faster or decelerate.
Why Economic Survey is important?
Every year, the Economic Survey is prepared by the finance ministry’s department of economic affairs headed by the CEA.
At this coronavirus pandemic time, Nirmala Sitharaman is going to present her third budget this year, which is touted to be one of the most challenging one this year.
In this regard, the finance minister is being assisted by a team of advisers and secretaries in preparing the Budget 2021 tasked with the mission to pull the economy from the deep abyss.
The documents of Economic Survey not only puts in perspective the country’s economic condition but also analyses trends in money supply, agricultural and industrial production, infrastructure, prices, employment, exports, imports, foreign exchange reserves as well as other relevant economic factors, serving as a prequel to the Budget. The Economic Survey 2021 will be of particular significance as the country comes out of the pandemic-hit year.