Union Finance Minister Arun Jaitley will set the tone for the Union Budget by tabling the Economic Survey in Parliament on Tuesday. Authored by Chief Economic Adviser Arvind Subramanian, the annual survey is expected to shed light on the policy priorities of the government and give a detailed account of the state of the economy especially in the wake of demonetisation drive.
What is Economic Survey and What does it feature?
The Economic Survey projects the official version of the state of the economy and is generally presented in Parliament a day before the presentation of the annual Budget. It acts as a precursor to the budget. It discusses the outlook, prospects and challenges of the economy while recommending reform measures that are essential to propel and thrive the economy.
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Things to watch out in the Survey
The annual survey is expected to deliberate in depth on the economic logic behind demonetising higher denomination notes of Rs 1,000 and Rs 500 and its repercussions for the economy. It is also expected to project a economic growth trajectory especially after the International Monetary Fund shaved its growth projection for India to 6.6% for 2016-17 and 7.2% in 2017-18 in view of the demonetisation fallout. It is widely said that the survey will also be dealt with Universal Basic Income, which guarantees a minimum income to every citizen. In addition, it is expected to mention in detail the policy around various measures and the capacity of the economy to adjust to the new measures.
Are these recommendations mandatory for the government to follow ?
These recommendations serve only as a policy guide as the government is not bound to follow them. Earlier, suggestions laid out in the economic survey were not followed in budget proposals on many occasions.
Earlier on Monday, Congress painted a grim picture of the economy with former finance minister P Chidambaram saying he doesn’t expect the economy to grow higher than 6.5 per cent in the next two financial years. He warned the ruling dispensation from projecting a “rosy picture” of the economy.