Economic Survey 2020: How much does it translate into actionable ideas?

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FM Sitharaman has arrived at the North Block where the Ministry of Finance is housed. Minister of State for Finance, Anurag Thakur, was earlier seen offering prayers at his residence. FM Sitharaman will begin her Budget 2020 speech at 11 am on February 1 in the Parliament.

The annual Economic Survey is usually presented a day before the finance minister tables the Union Budget in the Parliament. Prepared by the economic division of the Department of Economic Affairs, it serves as the official report of the economy.

The document comprises Volume I, Volume II and the statistical appendix. Tabled in both Houses of the Parliament, it reviews the developments that took place in the Indian economy over the past financial year.

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It gives a detailed account of the state of the economy, prospects and the policy challenges. It carries sectoral overviews and comments on reform measures that are required. The survey’s outlook serves as a marker about future policy moves.

The survey puts out economic growth forecasts, giving out detailed reasons why it believes the economy will expand faster or decelerate. Commentary on topics such as GDP growth, job growth and GST collection is expected in the Economic Survey 2020.

Authored by Chief Economic Adviser Krishnamurthy Subramanian and his team, the survey serves as the official report of the economy and as a policy guide. The government is not bound to follow these recommendations.

The survey, in the past, has favoured policy moves that come into conflict with the official line of thinking of the government in power. These do not necessarily serve as pointers to what to expect in the Budget. On many occasions, policy changes recommended in the document have not found a place in Budget proposals.

With the economy reeling under one of its worst slowdowns in decades, the finance minister is expected to pull out all available measures to give a boost to flailing consumer demand and investment. Meanwhile, personal income tax rate cuts along with some relief for rural and agriculture sectors may also be on the cards.