Union Budget 2024: Govt is all set to table Economic Survey 2023-24 today; What is it?
Union Budget 2024: As the nation gears up for the Union Budget 2024, all eyes on Union Finance Minister Nirmala Sitharaman as she is all set to present her vision for India’s economic future.
This budget holds significant importance as it sets the tone for the country’s fiscal policy amidst global economic uncertainties and domestic challenges.
A day ahead of the full Budget presentation from 2024-25, the Union government is set to table the Economic Survey 2023-24 in both houses of Parliament today.
Economic Survey 2023-24: Date and Time
The Economic Survey 2023-24 will be presented in Lok Sabha at 1 pm and in Rajya Sabha at 2 pm, followed by a press conference by Chief Economic Adviser Anantha Nageswaran.
What is an Economic Survey?
The Economic Survey document, prepared by the Economic Division of the Department of Economic Affairs in the Ministry of Finance and formulated under the supervision of the chief economic adviser, will give insights into the state of the economy and various indicators of 2023-24 (April-March) and some outlook for the current year.
The Economy Survey document may also give some idea about the tone and texture of the actual Budget for 2024-25, to be presented on Tuesday.
Significance of the Economic Survey
Economic Survey provides an exhaustive review of the highs and lows of the Indian economy, offering insights derived from the previous year’s budget implementation. This document plays a pivotal role in shaping expectations and strategies for the upcoming fiscal year.
The first economic survey reportedly came into existence in 1950-51, when it used to be a part of the budget documents. In the 1960s, it was separated from the Budget documents and presented the day before the Union Budget.
The Survey document also adds new need-based chapters that need focus.
India’s growth projections for 2024
The Reserve Bank of India (RBI) has revised its GDP forecast for 2024-25 to 7.2 percent from 7 percent, citing robust domestic demand. Similarly, the International Monetary Fund (IMF) increased India’s 2024 growth projection from 6.8 percent to 7 percent, solidifying India’s position as the fastest-growing economy in emerging markets.
The IMF’s previous projections for 2024 were 6.5 percent, later revised to 6.8 percent, and now to 7 percent. Official data shows India’s GDP grew by 8.2 percent in 2023-24, following growth rates of 7.2 percent in 2022-23 and 8.7 percent in 2021-22.
However, the RBI projects inflation at 4.5 percent for 2024-25. Food inflation nearly doubled year-on-year in June to 8.36 percent from 4.63 percent, driving overall retail inflation higher. Although within the RBI’s 2-6 percent comfort range, it exceeds the ideal 4 percent. Since May 2022, the RBI has raised the repo rate by 250 basis points to curb inflation, acknowledging that prolonged high food inflation is no longer transitory