Economic Survey 2022-23 for UPSC CSE

Categories: Miscellaneous, Published: 4th Feb, 2023

Economic Survey is a report pertaining to the State of the Economy of the Past year Presented by the Government (Ministry of Finance, Government of India). The report also highlights the anticipated challenges and the Possible Solutions to resolve those Challenges. It is presented one day before the Union Budget is tabled in the Parliament by the Union Finance Minister.

The Economic Survey is the most authenticated annual Financial Document Prepared by the Department of Economic Affairs, Ministry of Finance; Under the Guidance of the Chief Economic Advisor. Present Chief Economic Advisor is Mr Venkataramanan Anantha Nageshwaran. It should be noted that CEA is the head of the Economic Division of the Department of Economic Affairs, under the Ministry of Finance, GOI).

This year the Economic Survey of 2022-23 was presented on 31^st January 2023 by the Union Minister of Finance & Corporates Affairs Smt. Nirmala Sitharaman.

Major Highlights of Economic Survey (2022-23): Let us briefly summarize the summary of the Economic Survey, important for UPSC CSE Aspirants.

The Report Predicts that India may witness GDP growth of (6 – 6.8) % in the upcoming Financial Year 2023-24. Today the entire world has become a Global village and any unfortunate event in other countries have an immense effect on our Economy as well. In addition to it, the Political Development and trajectory of the Economy are significant factors in fluctuating the Growth Rate.
The Survey Projects a baseline GDP growth of 6.5 % (Real terms) in the upcoming financial year 2023-24.
India has witnessed a growth of 8.7 % in the previous financial year 2021-22. The growth rate for the current Financial Year (2022-23) has been estimated to be 7 % in real terms.
The contribution of MSMEs is crucial for Indian Economy as it is significant in boosting the Indian Economy. More than 11 Crores of People are employed in this Sector. It is important to note that on average during Jan -Nov 2022, the Credit Growth to MSMEs has been over 30.5 Percentage.
For a Growing Economy like India, it is important for the Government to invest or allocate significant Funds under Capital Expenditure. Capital Expenditure refers to investment in Infrastructure such as Roads, Railways, Bridges, Educational Institutions, Hospitals and others.
Such Expenditure strengthens the Economy and enables the Country to grow faster in terms of GDP. The Survey states that Capital Expenditures have increased by 63.4 % in the first eight months of the Current Financial Year 2022 -23.
The Fiscal Deficit for the current financial year (2022-23) would be 6.4 % as per the Economic Survey Report. It should be noted that the Fiscal deficit is the amount that the Central Government borrows in order to meet its Expenditure / Investment. A fiscal deficit would be good if it is for Capital Expenditure.
The Economic Survey has also mentioned the forecast of Global trade by the World Trade Organization which states that Global trade would depreciate from 3.5 % (2021-22) to 1 % (2022-23).
Private Consumption as a Percentage of GDP was 58.4 % in the Second Quarter of the Financial Year 2022-23, which has been high among all the second Quarters since 2013-14.
The rate of Inflation would be 6.8 % in the current financial year, Projected by RBI. There are many factors that influence inflation within an Economy. Global unfortunate Events like Russia – Ukraine Crisis has also its own repercussion on Inflation.
The Gross Tax revenue registered on year-on-year growth of 15.5 % in the first eight months of the Current Financial year ( 2022-23).
The net Tax revenue to the Central Government after allocation to state Governments rose to 7.9 Percentage a year -on a -a yearly basis.
Digitalization of Economic Transactions and reforms like the introduction of GST have helped further in the formalization of the Economy. As a result of this, there has been increasing in the Tax net and enhanced Tax Compliance. It has eventually led to revenue growth much faster than GDP growth.
There has been increasing in the number of GST taxpayers and in fact, it has just doubled from 70 lakhs (2021-22) to 1.4 Cr (2022-23). The gross GST collections were 13.40 lakh Crore during the first eight months of the Current Financial year.
The Survey highlighted that the Indian Economy has been robust and its financial Performance has been resilient despite Russia – Ukraine Crisis & Covid Pandemic repercussions. It was only possible due to a recovery in economic activity and buoyancy in the revenue.