Union Budget 2025: What is Economic Survey? When is it presented?

The Economic Survey offers a comprehensive review of India's economic performance over the past fiscal, covering various sectors such as agriculture, industry, and services.

The Union Budget for 2025 is set to be presented on February 1, with the Ministry of Finance releasing the much-anticipated Economic Survey 2025 just a day before. The Economic Survey plays a key role in shaping the upcoming Union Budget by offering valuable insights into India's economic health and outlining key themes of the government's financial planning.

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As preparations for the budget are in full swing, understanding the Economic Survey's nature, its content, and its importance becomes crucial:

What is the Economic Survey?

The Economic Survey offers a comprehensive review of India's economic performance over the past fiscal, covering various sectors such as agriculture, industry, and services. The document includes extensive statistical data on key economic indicators, including GDP growth, inflation, employment rates, fiscal deficit, and other relevant metrics. Additionally, it presents policy recommendations aimed at addressing economic challenges and promoting growth, which significantly influence the development of the Union Budget. The Economic Survey is prepared by the Economic Division of the Department of Economic Affairs (DEA) within the Union Ministry of Finance, under the supervision of Chief Economic Advisor (CEA) V Anantha Nageswaran. Once finalised, the document undergoes scrutiny by the Finance Secretary before receiving approval from the Finance Minister.

The Economic Survey is divided into two main sections. Part A offers a detailed review of India’s economic health, highlighting major developments and key economic indicators from the current fiscal year. Part B, on the other hand, focuses on socio-economic issues such as education, poverty, climate change, human development, and social security. With projections on GDP growth, forex reserves, trade deficits, and inflation, the Economic Survey remains a vital pre-budget document. This year, the Survey's theme is expected to focus on deregulation.

Why is the Economic Survey important?

Beyond its role in informing the Union Budget, the Economic Survey is vital for guiding policy decisions and shaping long-term economic strategies. By offering an impartial assessment of the economy, it helps hold government policies accountable while providing transparency. The Survey also serves as an essential tool for stakeholders like investors and businesses, equipping them with vital economic data to inform decision-making. Furthermore, it acts as a benchmark to evaluate the current state of the economy and set goals for future growth. Traditionally, the Finance Minister presents the Economic Survey in Parliament, with Nirmala Sitharaman expected to do so this year.

Historically, the Economic Survey was presented alongside the Union Budget from 1950 to 1964. However, after 1964, it became a standalone document and has since been tabled a day before the Union Budget each year. The Economic Survey continues to be a crucial document in shaping the government’s economic policy and providing a transparent view of India’s economic landscape.