Explained: What is Economic Survey, and why is it important?

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News: The Economic Survey for 2019-2020 will be tabled in Parliament on Friday (January 31).

Facts:

About the Economic Survey

  •  It is a report the government presents on the state of the economy in the past one year, the key challenges it anticipates, and their possible solutions.
  • It is prepared by the Economic Division of the Department of Economic Affairs (DEA) under the guidance of the Chief Economic Advisor (currently Dr Krishnamurthy Subramanian.)
  • The first Economic Survey was presented in 1950-51

Significance:

  •  Crucial document as it provides a detailed account of the state of the economy, prospects and the policy challenges.
  •  Carries sectorial overviews and comments on reform measures that are required.
  • Survey’s outlook serves as a marker about future policy moves.

Note: Government is not constitutionally bound to present the Economic Survey or to follow the recommendations that are made in it.