Budget 2026: What is the Economic Survey?: India's Economic Survey is essentially an annual report card on the state of the economy. It assesses the government's economic policies and suggests further reforms.
The Economic Survey is a crucial government document prepared by the Government of India that provides a detailed analysis of the state of the economy, key trends, challenges, and future prospects of the previous financial year. This report is typically presented in Parliament a day before the Union Budget, allowing Members of Parliament, policymakers, investors, and the general public to get a clear and fact-based picture of the economy before the budget is presented.
The main objective and importance of the Economic Survey:
It highlights the economic achievements, weaknesses, and emerging risks of the past year. The survey assesses the government's economic policies and suggests further reforms, although it does not announce any new policies. It helps in understanding the collection and proper allocation of resources. It provides context to budget proposals and helps in understanding their impact. Government expenditure, revenue, growth rate, inflation, etc., are examined based on economic and functional classifications, such as investment in capital formation and transfer payments (grants, subsidies, etc.).
The Economic Survey discusses these areas:
Gross Domestic Product (GDP) and growth rate
- Performance of agriculture, industry, and service sectors
- Inflation, prices, and monetary policy
- Employment, labor market, and unemployment
- Infrastructure development
- Imports-exports, trade balance, and foreign exchange reserves
- Fiscal deficit, public debt, and financial stability
- Other indicators such as investment, consumption, FDI, etc.
Who prepares the Economic Survey report?
The Economic Survey is primarily prepared by the Department of Economic Affairs, under the leadership of the Chief Economic Advisor. Currently, this responsibility rests with V. Anantha Nageswaran. The team comprises several economists and experts. In recent years, efforts have been made to make the survey more concise and simpler. For example, a few years ago, it was reduced from two volumes to one volume to make it less complex and more accessible to the general public.
The Economic Survey is the 'annual report card' of the country's economic health. It is the most reliable source for the government, Parliament, experts, investors, and ordinary citizens to understand the direction of the economy. Its role is crucial in determining the framework and priorities of the upcoming Union Budget.
