Finance minister Nirmala Sitharaman will current the Financial Survey for 2021-22 in Parliament on January 31, Monday, at some point earlier than she tables Union Funds 2022. The Financial Survey is anticipated to be a single quantity report this 12 months, projecting a progress of round 9 per cent for the subsequent monetary 12 months.
Right here’s a lowdown on the importance of the doc and what might be anticipated this 12 months
What’s the Financial Survey
The doc comprises an in depth account of the state of the economic system, its prospects and coverage modifications. The Financial Survey carries sectoral overviews and feedback on reform measures wanted. The Survey’s outlook serves as a marker for future coverage strikes as properly.
It places out financial progress forecasts and offers detailed account of why the economic system will speed up or decelerate. At instances, it additionally argues for particular reform measures.
The Financial Survey was first introduced in 1950-51, and till 1964, was tabled within the Lok Sabha together with the Union Funds. Since 1964, the Financial Survey has been launched yearly on the eve of Funds presentation. The one aberration was 2021 when the Survey was introduced two days earlier than the Union Funds.
Who Prepares the Financial Survey
The Financial Survey is historically authored by the Chief Financial Adviser. However this 12 months, the doc is being ready by Principal Financial Advisor and different officers because the place of CEA was stuffed, by V Anantha Nageswaran, simply a few days earlier than the presentation of the Financial Survey and Union Funds. The CEA is a Secretary-rank official connected to the Finance Ministry.
Even the primary Financial Survey of the Narendra Modi authorities, introduced by then finance minister Arun Jaitley in July 2014, was ready by senior financial advisor Ila Patnaik.
At the moment, the submit of the CEA was vacant following the appointment of Raghuram Rajan as RBI Governor. Later, Arvind Subramanian moved in as CEA in October 2014. Anantha Nageswaran’s fast predecessor KV Subramanian accomplished his three-year time period as CEA on December 6 final 12 months.
What to Anticipate in Financial Survey This 12 months
Financial Survey 2021-22 is prone to challenge a progress of round 9 per cent for the subsequent monetary 12 months. The Indian economic system, as per the advance estimates of the Nationwide Statistical Workplace (NSO), is anticipated to file a progress of 9.2 per cent in the course of the present fiscal, decrease than 9.5 per cent projected by the RBI.
The economic system had contracted by 7.three per cent throughout 2020-21 following the Covid-19 pandemic and the next nationwide lockdown to test the unfold of the virus. The affect of Covid-19 on the economic system was comparatively much less in the course of the present monetary 12 months as lockdowns had been native in nature and didn’t trigger large-scale disruption in financial exercise.
The Financial Survey 2020-21, launched in January final 12 months, had projected GDP progress of 11 per cent in the course of the present monetary 12 months ending March 2022.
Are the Suggestions Binding?
The federal government will not be certain to comply with the suggestions made within the Financial Survey because the doc serves extra as a coverage information. The Financial Surveys previously have favoured coverage strikes seen as contradicting the political ideology of the get together in energy.
These don’t essentially function tips about what to anticipate from the Funds doc. On many events, coverage modifications really helpful within the Financial Survey discover no place in Funds proposals.