New Delhi:  The Budget Session of Parliament will start on January 31 with the customary presidential address, followed by Budget on February 1 to be presented by the Union Finance and Corporate Affairs Minister Nirmala Sitharaman. 


The first Economic Survey was also presented along with the Union Budget against the backdrop of India adopting its Constitution in January 1950. Until 1964, the document was released during the time of the Budget. It was separated from the Union Budget to offer a better understanding of the Budget proposals.


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Just a day prior Budget being presented, the Economic Survey usually prepared under the guidance of the Chief Economic Advisor (CEA) is released.


The Centre is expected to present the Economic Survey in Parliament on January 31.


While the first half of the budget session will be operational from January 31 to February 11, it will reconvene on March 14 and continue till April 8. However, the second half will be subject to government exigencies.


It will be the 10th budget for the Narendra Modi-led BJP government since it came to power in 2014.


What is the Economic Survey?


The Economic Survey typically sets the context for the Union Budget. Giving a preview of the trends of various sectors, the Economic Survey tracks the state of the economy in the past year. The document showcases the key challenges expected and the way out.


Known as the flagship publication of the finance ministry, the document is prepared by the Economic Division of the Department of Economic Affairs (DEA) under the guidance of the CEA.  After the document is prepared, the Survey has to get approval from the finance minister.


In the past few years, the Economic Survey has been presented in two volumes. For instance, in 2018-19, Volume 1 was focussed on research and analysis of the challenges facing the Indian economy, while Volume 2 gave an insight of the financial year, covering all the major sectors of the economy.


Since Arvind Subramanian took over the reigns as CEA, it became a two-volume report. However, the practice was continued by his successor K V Subramanian.


The Economic Survey for 2021-22 is expected to have only one volume due to the absence of a full-time chief economic advisor, according to Times of India report. It will mostly comprise the data for the fiscal year across different industry verticals and will not involve the policy prescriptions that are part of the main Volume-1 (CEA).


What is the importance of Economic Survey?


Considered as one of the critical documents, it offers an insight into the country’s economic condition. The Economic Survey takes into consideration key trends in money supply, infrastructure, agricultural and industrial production, employment, prices, exports, imports, foreign exchange reserves besides other economic factors that may have a bearing on the Budget. The document also focuses on key concerns of the economy.  It also reviews the allocation of resources in the Budget.


It is interesting to note that in 2018 the Economic Survey presented by the then CEA Arvind Subramanian was printed in pink to focus on the cause of gender equality. It was aimed on supporting women who suffer violence and to push for more gender equality. Bsides the change in document colour, Subramanian reshaped the whole document by making it more interesting with quotes and additional information.


Is it mandatory to present the Economic Survey?


It will be the third Economic Survey to be presented under the shadow of Covid-19. The government is not constitutionally bound to present the Survey or to abide by the recommendations of the survey. It depends entirely on the government if wants to choose or reject the suggestions listed in the document. Even as the Centre is not obliged to present the Survey, it is presented owing to its significance. The document is seen as the report card of the economy and CEAs have been projecting the document to push through reform ideas.


The document can be  accessed in PDF form on the Ministry of Finance's website--finmin.nic.in or on the website specifically designed for the Union Budget--indiabudget.nic.in.