Economic Survey 2022-23

Context: The Union Finance Minister, recently tabled the Economic Survey for the Financial Year 2022-23, after the President’s address, on the first day of the Union Budget Session 2023-24. The Economic Survey said that India’s economic recovery from the pandemic is complete and the economy is expected to grow in the range of 6% to 6.8% in the coming financial year 2023-24.

About Economic Survey:

• The Economic Survey is a detailed report of the state of the national economy in the financial year that is ending.
• It is prepared by the Economic Division of the Department of Economic Affairs (DEA) under the guidance of the Chief Economic Advisor.
• Once prepared, the Survey is approved by the Finance Minister.
• The first Economic Survey was presented for 1950-51 and until 1964, it was presented along with the Budget.

• For the longest time, the survey was presented in just one volume.
• Between 2010-11 and 2020-21, the survey was presented in two volumes.
• Economic Survey 2022 reverted back to a single volume format.
• Even though it comes just a day before the Budget, the assessment and recommendations carried in the survey are not binding on the Budget.

About Chief Economic Advisor (CEA):

• The chief economic advisor, is equivalent to the rank of Secretary in the hierarchy, advises the government on economic matters.
• He scripts the Economic Survey of India which is presented in Parliament by the finance minister.

Source: The Hindu

Previous Year Questions

Q.1) With reference to the Indian economy, consider the following statements:

1. If the inflation is too high, Reserve Bank of India (RBI) is likely to buy government securities.
2. If the rupee is rapidly depreciating, RBI is likely to sell dollars in the market.
3. If interest rates in the USA or European Union were to fall, that is likely to induce RBI to buy dollars.

Which of the statements given above are correct? (2022)

1. 1 and 2 only
2. 2 and 3 only
3. 1 and 3 only
4. 1, 2 and 3

Q.2) The money multiplier in an economy increases with which one of the following? (2021)

1. Increase in the Cash Reserve Ratio in the banks.
2. Increase in the Statutory Liquidity Ratio in the banks
3. Increase in the banking habit of the people
4. Increase in the population of the country