Budget 2023: What is Economic Survey & how does it impact the Union Budget plan?

The Indian Ministry of Finance is all set to present the last full budget of Prime Minister Narendra Modi-led government's second term. The Economic Survey, a comprehensive document which provides a review of the Indian economy of the current financial year, will be tabled in both houses of the Indian Parliament on January 31.

The document will be tabled by Union Finance Minister Nirmala Sitharaman and will summarise the performance of India’s primary development projects in addition to forecasting the growth of GDP. The economic survey will be used by the government to highlight important economic indicators and the areas that need to be focused on in the next fiscal year.

According to the Indian Ministry of Finance, the survey highlights economic trends in the country and subsequently facilitates the government in the mobilisation and allocation of resources. The survey also takes into consideration the trends of expenditure in industrial production, agriculture, infrastructure, exports, imports, prices and foreign exchange reserves.

Budget Session-2023 is to be held in two parts

The Budget Session with the PM Modi-led government's heavy financial agenda is set to be held in two parts. The session will begin with President Droupadi Murmu's customary address to the joint sitting of both Houses - Lok Sabha and Rajya Sabha - in the Central Hall of Parliament. Following this, the Economic Survey will be tabled. The first part of the session is scheduled to be held from January 31 till February 13.   

Ahead of the budget announcement, the country’s defence sector is expected to get a big boost in fund allocation. According to data from the Indian Ministry of Defence, the government has increased the procurement of indigenous defence products from 50% to 68% in recent years. Estimates suggest that the figure is expected to rise to 75 to 80% in FY 2023.  

Meanwhile, the second part of the session will begin on March 13 and will culminate on April 6. During this, demands from individual departments and ministries for grants will be up for discussion. Additionally, the discussions will also include Performance and Outcome Budgets, and Annual Reports by the respective ministries and departments.