Economic Survey and Budget 2022

The Economic Survey 2021-22 was submitted to the Lok Sabha by India’s Minister of Finance, Nirmala Sitharaman, on Monday. The pre-Budget Economic Survey forecast an 8-8.5 percent GDP growth in the fiscal year starting in April, indicating that India has the fiscal space to do more to support the economy. As a result, India will continue to hold the title of having the major economy that is expanding at the fastest rate in the world. 

According to a report published by the PTI, India is on track to wrest the title of world-beating economy tag this fiscal with a forecast growth of 9.2 percent, and the extensive coverage of vaccines, supply-side reforms, and relaxing of regulations are going to back it in the next. According to the Economic Survey, the level of economic activity has returned to where it was before the pandemic. In addition to this, it noted that the economy is in a strong position to face challenges in 2022 and 2023. Robust rise in exports as well as the availability of fiscal headroom to increase capital spending in order to boost growth in the following fiscal year.When speaking to the media, Principal Economic Advisor Sanjeev Sanyal stated that exports have been a major driver of growth and that they are now very significantly above the pre-Covid levels, but that imports have also been very strong. Sanyal noted that exports have increased by a very large amount since the beginning of the Covid. In general, GDP is now 1.3 percentage points higher than it was before the pandemic.

What is an Economic Survey?

The Economic Survey of India is a publication that is produced on a yearly basis by the Ministry of Finance under the Indian government. The Survey is presented before the Parliament on an annual basis by the Department of Economic Affairs within the Ministry of Finance, right before the Union Budget is introduced. It is being compiled with the assistance of India’s Chief Economic Adviser at this time. 

During the Budget Session, this paper is given to both the House of Representatives and the Senate.As a part of the Union Budget for the financial year 1950–1951, the first Economic Survey of India was given. After 1964, it was removed from the Budget and presented independently during the Budget Session each year before the Budget was presented. The document is not legally binding in any way. Despite this, it is built and displayed annually because of the significance of the event.

Meaning of Economic Survey

The Economic Survey is similar to an annual report card that is given out regarding the state of the economy. It is delivered the day before the budget and analyses the performance of each and every industry before making recommendations for potential next steps. In 1964, the Economic Survey was separated from the Budget and presented beforehand in order to offer background information for the latter document. Each survey is organised around a central topic. The topic of saving lives and livelihoods was the focus of the event the year before. The Economic Survey for 2017–2018 featured a pink cover in honour of its topic, which was the empowerment of women. It is divided into two sections: the first discusses the difficulties the nation is having economically, and the second examines the previous year in detail. The poll is also helpful in providing a better knowledge of the Union Budget by comprehending the country’s priorities for the following fiscal year and determining which sectors would require more concentration.

The Central theme of Economic Survey 2022

A recent event that took place was the presentation of the Economic Survey 2021-22 to both Houses of Parliament by the Finance Minister shortly after the President’s address to both houses. The “agile approach” is being emphasised to a significant degree throughout this year’s Economic Survey. The survey conducted this year offers a variety of case studies to illustrate how satellite imagery and geospatial data may be used to represent the expansion of the nation’s infrastructure.

The Key points of Economic Report for 2021 and 2022

Current Economic Situation (Percentage of Growth in GDP):

• Following a decline of 7.3 percent in 2020-21, it is anticipated that the real size of the Indian economy would expand by 9.2 percent in the following year, 2021-22, according to the most recent initial advance projections.
• It is anticipated that the Gross Domestic Product (GDP) will expand by 8-8.5 percent in real terms in the years 2022-23.
• A projection that is equivalent to the most recent projections of real GDP growth made by the World Bank and the Asian Development Bank, which are, respectively, 8.7 percent and 7.5 percent for 2022-23.
• According to the most recent World Economic Outlook projections from the International Monetary Fund,  India’s real GDP is projected to grow at a rate of 9 percent in 2021-22 and 2022-23 and at a rate of 7.1 percent in 2023-2024. If these projections come to fruition, India will hold the title of having the fastest growing major economy in the world for each of these three years.

Conclusion

Every year, in the weeks leading up to the presentation of the Union Budget, the Department of Economic Affairs within the Ministry of Finance gives a report to Parliament entitled the Economic Survey of India. During the Budget Session, this paper is given to both the House of Representatives and the Senate. The Economic Survey is a comprehensive report that analyses the state of the Indian economy over the course of the preceding year. It describes the progress made on significant development programmes, highlights the policy efforts of the administration, and outlines the growth expectations for the economy. In most cases, the Chief Economic Advisor will be the one to present it (CEA). However, the Principal Economic Advisor Sanjeev Sanyal is the one who worked on it this year (2022), therefore it reflects his work.