The Union government will not release the Economic Survey or have a full-fledged budget on February 1 this year.
Finance Minister Nirmala Sitharaman will present an interim budget, also known as a vote-on-account.
The year 2024 is an election year in India, and the Economic Survey gives an analysis of the past year’s performance and future outlook.
Since this is an election year, the document could get politicised due to the potential change in government after the elections. This could disrupt the smooth functioning of the regular Budget process, which typically follows the survey presentation.
The Economic Survey is a comprehensive annual report analysing the performance of the Indian economy over the past year and offering insights into its prospects.
It is typically presented by the Chief Economic Advisor (CEA) in the lead-up to the Union Budget, providing a critical backdrop for the government’s financial plans.
Although there will be no Economic Survey this year, but the Union Finance Ministry has released a report titled ‘Indian Economy — A Review’ saying the Indian economy is expected to grow at a rate above 7% in coming years.
The Review consists of two chapters and takes stock of the state of the Indian economy and its journey in the last 10 years and offers a brief sketch of the outlook for the economy in the coming years.
The growth will be riding on the strength of its financial sector and other recent and future structural reforms and can aspire to become a $7 trillion economy by 2030.
“In the next three years, India is expected to become the third-largest economy in the world, with a GDP [gross domestic product] of $5 trillion. The government has, however, set a higher goal of becoming a ‘developed country’ by 2047,” said the report.
Importantly, the report indicates continuity in economic reforms if the Modi government comes to the power for a third-term.