All about the Economic Survey: Who Prepares It, How Is It Different From Union Budget
Finance Minister Nirmala Sitharaman presented the Economic Survey 2025–26 in Parliament earlier today, marking the formal start of the Union Budget exercise. The annual document offers a detailed assessment of India’s economic performance, challenges, and prospects, and lays the analytical groundwork for the Budget that follows. Traditionally, the Economic Survey is released a day before the Union Budget, setting the tone and context for budget proposals and fiscal policy decisions.
What is the Economic Survey?
It is the government’s flagship annual report on the state of the Indian economy. It reviews major economic developments over the past year, analyses key trends and challenges, and provides policy-oriented insights ahead of the Union Budget.
Who prepares the Economic Survey?
The Economic Survey is prepared by the Chief Economic Adviser (CEA) and the Economic Division of the Department of Economic Affairs under the Ministry of Finance. While drafted by economists, it reflects the government’s official assessment of the economy.
When was the first Economic Survey of India presented?
The first Economic Survey of India was presented in 1950–51. Initially, the Survey was released along with the Union Budget. However, from 1964 onwards, it began to be presented separately, ahead of the Budget announcement, a practice that continues to this day.
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How is the Economic Survey different from the Union Budget?
The Economic Survey and the Union Budget serve distinct but complementary roles in India’s fiscal process.
The Economic Survey is an analytical document that reviews the economy’s performance, highlights challenges, and offers policy insights. It does not announce tax changes, spending plans, or fiscal measures.
The Union Budget, on the other hand, is the government’s official financial statement. It details proposed revenues, expenditures, taxation measures, and overall fiscal strategy for the coming financial year.
Simply put, the Economic Survey explains the “why” behind economic policy thinking, while the Union Budget lays out the “what” in terms of concrete fiscal decisions.
What is its importance?
The Survey provides the analytical foundation for the Union Budget. It highlights economic strengths, identifies risks, and outlines policy priorities, helping Parliament, policymakers, businesses, and citizens understand the government’s economic thinking.
What period does the Economic Survey 2025–26 cover?
The Survey primarily reviews developments during FY 2025–26 (April–March) and also presents an outlook for the next financial year, making it both a review of the past year and a guide to the year ahead.
How is the Economic Survey structured?
The Economic Survey is divided into three broad parts, each focusing on a different dimension of the economy.
The first section offers an overall review of key economic issues and presents the Chief Economic Adviser’s perspective on growth, reforms, global challenges, and policy direction.
The second section provides sector-wise analysis, drawing on data from various ministries and departments. It covers sectors such as agriculture, industry, services, infrastructure, and social sectors.
The third section focuses on macro-economic indicators, including: National income, Production and employment, Inflation trends, Balance of trade, Export and import performance
Together, these indicators offer a data-driven snapshot of India’s overall economic health.
(With inputs from ANI)