Introduction and About:

- In a historic move, the Indian government has decided to diverge from the customary practice of presenting the Economic Survey prior to the Union Budget. The year 2024 will witness this unprecedented divergence owed to it being an election year in the country.

- The Finance Minister Nirmala Sitharaman is set to present an interim budget, often called a vote-on-account, on February 1st, breaking away from the long-held norm.

Why is it in the news?

- The decision to refrain from presenting the Economic Survey was made to avoid any potential politicisation that might hamper the usual Budget proceedings due to the upcoming general elections with the prospects of a government change.

- This year, the Ministry of Finance under the guidance of Chief Economic Advisor V. Anantha Nageswaran, has put forth a report titled "Indian Economy – A Review". This report serves as an alternative, providing insights into the economic trajectory of India, but does not replace the Economic Survey.

New Occurrence:

- The report "Indian Economy – A Review", although not an official substitution for the Economic Survey, provides a comprehensive analysis and prospect of Indian Economy over the past ten years, and predicts its expected future course.

- The conventional Economic Survey is expected to be presented only after the general elections following the formation of the new government.

Geography and History:

- The tradition of presenting Economic Survey can be traced back to 1950-51. The survey was usually presented before the Union Budget to provide a comprehensive picture of the annual economic development of the country.

- The Ministry of Finance, under whose authority the Economic Survey is prepared, was established on 29th October 1946.

Importance:

- The Economic Survey serves as a significant benchmark, providing an exhaustive and meticulous outline of the Indian economy, which in turn plays a pivotal role in formulation of the Union Budget.

- The step can be viewed as an attempt to insulate the nation's budgetary processes from potential partisan impacts during an election year.

Additional Notes:

- An interim budget or a vote-on-account is presented by the current government if its tenure does not align with the fiscal year. This ensures continuous running of the government till the next government is formed and a full-fledged budget is presented.

- Breaking from the customary practice of annual economic survey discloses a significant shift in the fiscal policies of the Indian government. It's a unique move aimed at preventing potential implications of the upcoming general elections on economic reviews and budget decisions.