India is soon going to witness one of its key economic decisions which will determine its future taxation and growth. The Union Budget for 2024 in India is expected to be unveiled on February 1st. However, this year’s budget will not have an Economic Survey being presented a day prior. Here is why:
What is an Economic Survey?
Before the presentation of the budget, the government of India is supposed to provide an Economic survey that gives a year-on-year comparison of previous government policies and their impact. The Economic Survey is always presented a day before the day of the budget presentation. The purpose of the Economic Survey is to provide an accurate assessment of the Indian economy for the previous 12 months. The survey has been released one day ahead of the Union Budget on average since 1964.
Why is an Economic Survey important?
The Indian economy’s progress during the preceding 12 months is examined in the Economic Survey. It presents the government’s policy initiatives, provides an overview of significant development program performance, and illustrates the economy’s growth expectations. Usually, the Chief Economic Advisor delivers it.
Why India won’t have an economic survey presented in 2024?
India is also all set to have its Lok Sabha elections in April and May of 2024. The elections will be conducted to elect the next prime minister. In such a case, due to the upcoming elections, the budget that will be presented will not be final.
India’s Finance Minister therefore be unveiling an interim budget and not a final budget, on February 1, 2024. As a result, on January 31, 2024, there won’t be an Economic Survey presented in India. Until elections are held and a new central government takes office, the interim budget serves as a short-term financial plan to finance central government spending.
What will be presented instead of the economic survey?
Though India won’t see an Economic Survey this time, the government is planning to release an alternative report instead. The government instead plans to release a report named ‘Indian Economy–A Review’.
The report will be a consolidation of India’s progress over the last ten years and will be presented a day before the budget release. The office of the CEA V Anantha Nageswaran has prepared the study, which also provides a preview of the economy’s prospects in the upcoming years.
Additionally, the study makes it very evident that it is not the Economic Survey of India, which it states will be unveiled following the general elections along with the entire budget.
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