It highlights the reforms regime brought in by current Govt
The Economic Survey is a policy document that gives a diagnostic report regarding the state of the economy and growth prospects. The survey for 2022-2023 (based on nearly nine months of economic data for the fiscal) is far more insightful on the tone of the eco-political narrative, which is going to play out in the run up to the mother of all democratic processes, the national general elections of 2024.
In a somewhat break from past Economic Surveys, this year’s economic survey seems more of a political document, highlighting through charts, graphs and illustrations, the economic welfare agenda of the current government starting from 2014. It was expected to be in the budget, but with the economic survey grabbing many of those, easy to grasp charts, suggests that the Modi government is really gearing up for pushing India to be the third largest world economy in about a decade’s time (caveat that is two new governments, one or both of which is unlikely to have Mr Modi leading the country from the front).
The Economic Survey highlights the reforms regime brought in by the current government immediately after it came to power, which were aimed at enhancing the overall structural efficiency and fundamentals of the economy. The finance ministry’s press statement read: “With an underlying emphasis on improving the ease of living and doing business, the reforms after 2014 were based on the broad principles of creating public goods, adopting trust-based governance, co-partnering with the private sector for development, and improving agricultural productivity.”
Some examples of those reforms included improved fiscal transparency and realistic revenue assumptions in the budget bringing down extra budgetary borrowings for the government to nearly nil for fiscal year 2023. The major reforms from previous budget documents highlighted in the economic survey included reduction in non-plan expenditure in the budget, thereby, efficiently streamlining government’s expenditures towards targeted sectors, while sticking to a fiscal discipline.
The merger of the railways budget with the main budget since fiscal year 2018 helped the government have better management of finances and allowed the finance ministry to focus more money on the integrated infrastructure divisions of railways, roads and ports more efficiently. The Economic Survey did not mention that this smart move brought an efficiency in railways governance, which prior 2014, has been used as a separate vote bank, since some of the most visible and sought after government jobs are in the railways. Finally, the Economic survey does highlight that advancing the general budget to February 1 gives an additional month for all departments of the government for better planning and implementation of the budget schemes.
It is important to understand that the Economic survey presents a macro narrative for the political economy. This document has tons of easily digestible data. The Survey for the first time includes chapters on social sector and climate change and environment, two themes very close to the Prime Minister’s inclusive sustainable economic growth agenda. The preface reads, “These chapters highlight how the use of technology has enhanced the quality of life for citizens to ensure the reach of social sector schemes to intended beneficiaries, especially during the pandemic. The transformations in the lives of the citizens happening through the Aspirational Districts Programme, Direct Benefit Transfers, use of Aadhaar and various initiatives in the education, health and basic infrastructure availability are highlights of the chapter.”
Clearly the economic report card of Modi government’s two consecutive terms is out, and much to the innovative thinking of the current bunch of policy makers, who have pushed it out even before the opposition parties have asked for it. This sets the agenda and helps the political class to take the lead in the perception game. It is up to the various political players within the ruling dispensation to take advantage.
((The author is a foreign affairs commentator)