ECONOMIC SURVEY 2022

ChinmayaIAS Academy - Current Affairs February 1, 2022 GS3 Leave a comment 693 Views

Recently, the Economic Survey 2021-22 was tabled in Parliament by the Finance Minister soon after the President’s address to both Houses of Parliament.
The central theme of this year’s Economic Survey is the “Agile approach”.
This year’s survey uses various examples to highlight the use of satellite and geospatial data to reflect the infrastructural growth in the country.

What is the Economic Survey?

The Economic Survey of India is an annual document released by the Ministry of Finance.
It contains the most authoritative and updated source of data on India’s economy.
It is a report that 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 Economics Division of the Department of Economic Affairs (DEA) under the guidance of the Chief Economic Advisor.
It is usually presented a day before the Union Budget is presented in the Parliament.
The first Economic Survey in India was presented in the year 1950-51. Up to 1964, it was presented along with the Union Budget. From 1964 onwards, it has been delinked from the Budget.

Key Points Of The Economic Survey 2021-22

The Indian economy is estimated to grow by 9.2% in real terms in 2021-22 (as per first advance estimates) subsequent to a contraction of 7.3% in 2020-21.
The Gross Domestic Product (GDP) projected to grow by 8-8.5% in real terms in 2022-23.
Projection comparable with World Bank and Asian Development Bank’s latest forecasts of real GDP growth of 8.7% and 7.5% respectively for 2022-23.
According to the International Monetary Fund’s latest World Economic Outlook projections, India’s real GDP is projected to grow at 9% in 2021-22 and 2022-23 and at 7.1% in 2023-2024, which would make India the fastest growing major economy in the world for all 3 years.
Combination of high Foreign Exchange Reserves, sustained Foreign Direct Investment, and rising export earnings will provide an adequate buffer against possible global liquidity tapering in 2022-23.
Tapering is the theoretical reversal of quantitative easing (QE) policies, which are implemented by a central bank and intended to stimulate economic growth.
Sustained revenue collection and a targeted expenditure policy has contained the Fiscal Deficit for April to November, 2021 at 46.2% of Budget Estimates.
The revenue receipts from the Central Government (April to November, 2021) have gone up by 67.2% YoY(Year on Year) as against an expected growth of 9.6% in the 2021-22 Budget Estimates.
Gross Tax Revenue registers a growth of over 50% during April to November, 2021 in YoY terms.
This performance is strong compared to pre-pandemic levels of 2019-2020 also.
Tax Revenue forms part of the Receipt Budget, which in turn is a part of the Annual Financial Statement of the Union Budget.
During April-November 2021, Capex (Capital Expenditure) has grown by 13.5% (YoY) with focus on infrastructure-intensive sectors.
With the enhanced borrowings on account of Covid-19, the Central Government debt has gone up from 49.1% of GDP in 2019-20 to 59.3% of GDP in 2020-21, but is expected to follow a declining trajectory with the recovery of the economy.
Buoyant tax revenues and government policies have created “headroom for taking up additional fiscal policy interventions”.
Stressing the need to continue the focus on capital expenditure, it has indicated that the government is on course to achieve the fiscal deficit target of 6.8% of GDP for the current year (2021-22).

Social Infrastructure:

Expenditure on social services (health, education and others) by Centre and States as a proportion of GDP increased from 6.2% in 2014-15 to 8.6% in 2021-22 (BE)
Total Fertility Rate (TFR) came down to 2 in 2019-21 from 2.2 in 2015-16.
Infant Mortality Rate (IMR), under-five mortality rate and institutional births have improved in 2019-21 over year 2015-16.
Under Jal Jeevan Mission (JJM), 83 districts have become ‘Har Ghar Jal’ districts.
Increased allotment of funds to Mahatma Gandhi National Rural Employment Guarantee Scheme (MNREGS) to provide buffer for unorganised labour in rural areas during the pandemic.
In addition to the National Health Mission, Union Budget 2021-22, announced Ayushman Bharat Health Infrastructure Mission, a new Centrally Sponsored Scheme to develop capacities of primary, secondary and tertiary Health Care Systems, strengthen existing national institutions, and create new institutions to cater to detection and cure of new and emerging diseases.
India is among the few countries producing Covid vaccines. The country started with two made in India Covid vaccines. In line with India’s vision of Atmanirbhar Bharat, India’s first domestic Covid -19 vaccine, Whole Virion Inactivated Coronavirus Vaccine (COVAXIN), was developed and manufactured by Bharat Biotech International Limited in collaboration with National Institute of Virology of Indian Council of Medical Research (ICMR).
The progress of vaccination should be seen not just as a health response indicator, but also as a buffer against economic disruptions caused by repeated pandemic waves.

SOURCE: THE HINDU,THE ECONOMIC TIMES,MINT

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