From finance experts to laymen, every eye is on the Interim Budget presentation that will happen on 1 February. Predictions and speculations are rife, and it is important that taxpayers remain informed about significant documents like Economic Survey. The Economic Survey generally lays down upcoming Budget’s policy perspective and is unveiled one day before the Budget launch.
As a summary of the country’s annual economic growth, it enables a better appreciation of resource deployment and how they are allocated in the Budget.
Here are 6 things you should know about the Economic Survey
1. The Economic Survey is announced in the Parliament one day prior to presenting the Budget for the coming year.
2. It examines how the agrarian and industrial production has fared and how it will impact the Budget. It contains elaborate facts and figures, covering all economic factors.
3. The Survey will also look into the infrastructure, employment, cash flow, expenditures, cost of imports and exports and foreign exchange reserves among other pertinent economic factors will affect the Budget.
4. Dividing expenditures and receipts based on how the funds are utilized is vital to help the government understand the previous Budget’s impact. Example, separating amount reserved for capital formation from what the government has spent directly and how much they allocated to different economic sectors (grants, interest, loans, etc.).
5. This Economic Analysis is included in the Economic and Functional Classification of the Budget allocated for the Centre.
6. The Economic Survey is one of the primary documents released by the Ministry of Finance annually.