Union Budget 2025: What Is The Economic Survey, When Is It Presented?

The Economic Survey 2024-25, scheduled for release on January 31, will provide a detailed analysis of India's economic performance over the past financial year. Released a day before the Union Budget 2025, the report will highlight key trends across sectors like agriculture, industry and services while offering policy recommendations to address challenges and promote growth. 

The Budget session in Parliament will start on January 31 and will conclude on April 4. Nirmala Sitharaman will present her eighth straight Budget on February 1.

What is the Economic Survey?

The Economic Survey is a critical document released by the Ministry of Finance ahead of the Budget. It provides a detailed analysis of economic trends in the country and aids in understanding how resources are mobilised and allocated in the Budget. 

It is prepared by the Economic Division of the Department of Economic Affairs under the Chief Economic Advisor (CEA) and is divided into two parts. Part A reviews the country's economic performance, focusing on fiscal trends and macroeconomic indicators, while Part B explores socio-economic issues like education, poverty, and climate change, along with projections for GDP growth, inflation and trade.

The Economic Survey evaluates key economic indicators such as agricultural and industrial production, infrastructure, employment, money supply, prices, imports, exports and foreign exchange reserves. It facilitates a comprehensive understanding of factors influencing the economy and their impact on the government's fiscal strategy.

Why is the Economic Survey presented before the Budget?

The Economic Survey is released before the Budget to give a clear picture of the economy.

While the Budget outlines the government's receipts and expenditures, it also serves as a significant policy document. The Economic Survey complements this by offering an in-depth view of how these fiscal measures are shaped by the broader economy. 

The Ministry of Finance releases a Functional Classification of the Budget, analysing expenditures in terms of economic priorities like capital formation and sectoral transfers through grants and loans.

The Survey helps policymakers:

• Set realistic revenue and expenditure targets

• Address challenges like unemployment and inflation

• Prioritise sectors needing immediate focus

• Align policies with global trends

• Manage public and market expectations by offering a transparent economic outlook