Finance Minister Nirmala Sitharaman presented the Economic Survey 2021 of the country on the first day of the budget session in Parliament. With this, the proceedings of the Lok Sabha have been postponed till 1 February. The country’s general budget is also to be presented on 1 February. Today we will tell you in this report what is an economic survey? Mainly, the Economic Survey report gives an account of how the country has developed in the last 12 months. It is mentioned in the Economic Survey that what effect the policies made by the current government or whatever development programs were carried out. The Economic Survey 2020-21 is composed by Chief Economic Advisor Krishnamurthy Subramanian.
What is Economic Survey?
To put it simply, the Economic Survey is the annual official report of the economy. This document is presented in both houses of parliament during the budget session. In it, all the information about future plans and challenges in the economy is given. This survey estimates the economic development of the country.
It is informed in the Economic Survey that the economy of the country will pick up or slow down in the coming financial year. The announcements in the budget are made by the government on the basis of the survey itself, although the government is not legally bound to follow these recommendations. The practice of presenting the Economic Survey before the budget is in the country for years. It was first introduced in the Lok Sabha in the year 1950-51, along with the Union Budget. This year, the Economic Survey was presented three days before the budget was presented.
According to the estimates of the Economic Survey presented in Parliament on Friday before the General Budget, India’s economic growth rate will reach 11 percent in the next financial year and V-shaped after the economic contraction due to the epidemic (the rapid aging of the dive). Will see improvement of With this, a record 7.7 percent decline in gross domestic product (GDP) has been projected during the current financial year ending 31 March 2021.
Earlier in India, the GDP contraction was 5.2 percent in 1979-80. The Economic Survey 2020-21 states that the agriculture sector continues to grow, while the services, manufacturing and construction sectors were the worst hit due to the lockdown imposed to prevent the Kovid-19 epidemic. “India’s real GDP is projected to grow at 11.0 percent in 2021-22 and 15.4 percent at current market prices following an estimated 7.7 percent contraction in 2020-21 due to the epidemic,” the survey said. ”
The survey said that with the introduction of vaccines and normalization of economic activity, these estimates may increase. The survey noted that due to easing regulations and reforms, the supply side is accelerating, increasing investment in infrastructure sector, boosting manufacturing sector through production-linked incentive schemes, increasing service sector and increasing discretionary consumption This will support economic growth.
In addition, the growth will be supported by the increase in debt due to the introduction of the vaccine and lower interest rates and sufficient cash. The survey presented in Parliament by Finance Minister Nirmala Sitharaman said that the financial slippage during the current year is estimated to be based on the available trends from April to November 2020. Also, after 17 years, India can see surplus in current account in the current financial year.
India recorded a surplus of 3.1 percent of GDP in the first half of the current year, largely due to a strong growth in services exports. According to the survey, given the import trends of both goods and services, it is expected that India will have an annual current account surplus of at least two per cent of GDP after a period of 17 years. According to the survey, a 7.7 percent contraction in GDP is expected in the current financial year due to the epidemic, but India could become the fastest growing economy in the next two years.
Let us tell you that President Ramnath Kovind’s address was made at the beginning of the budget session of Parliament on Friday. During this, he said, ‘In all its decisions, my government has also presented a unique example of the collective power of the federal structure. This coordination between the central and state governments has strengthened democracy and strengthened the prestige of the Constitution. ‘