Budget 2024: FM tables Economic Survey FY24 before D-Day

Finance Minister Nirmala Sitharaman presented the Economic Survey 2023-’24 (or FY24) in the Lok Sabha on Monday, a day before tabling the Union Budget 2024 for FY25.

The Economic Survey report is created by the Department of Economic Affairs of the finance ministry, under the supervision of India’s Chief Economic Advisor, V. Anantha Nageswaran.

WHAT IS ECONOMIC SURVEY

The Economic Survey is a detailed annual report that outlines the state of the nation’s economy during the concluded fiscal year (in this case, FY24), reviewing the economic performance of the Centre by discussing policies and salient developmental programmes implemented. The Economic Survey also acts as a preview of the government’s economic plan of action for the fiscal year ahead.

Specifically in terms of the Union Budget, the Economic Survey provides a comprehensive idea of the upcoming Budget (in this case, for FY25), by offering a detailed list of what is being deemed important for the next financial year and which sectors require extra attention.

The Economic Survey is prepared in two parts. Part A analyses the economy, dissected in terms of challenges and development. Part B looks at the government’s economic performance in the past fiscal year in terms of issues that concern the country, such as healthcare, education, poverty, human development, security and climate concerns.

Here are the salient issues that the Economic Survey FY24 highlighted

GDP FORECAST

The survey estimates the growth rate of India’s real GDP to be around 6.5 and 7 per cent in the financial year 2024-’25, or FY25. The rate is in sync with that of the International Monetary Fund (IMF), which has predicted India’s GDP will grow at 7 per cent.

“The survey conservatively projects a real GDP growth of 6.5-7 per cent, with risks evenly balanced, cognizant of the fact that the market expectations are on the higher side,” the Economic Survey says. Before the Interim Budget for FY25, which was presented on February 1 this year, a finance ministry forecast pinned India’s GDP growth rate at nearly to 7 per cent.

FOOD INFLATION

The Economic Survey mentions that the Reserve Bank of India (RBI) must desist from looking at food inflation while deciding interest rates and the Centre should consider giving cash or coupons to the poor to deal with steep food expenses.

“India's inflation targeting framework should consider targeting inflation, excluding food. Higher food prices are, more often, not demand-induced but supply-induced,” the survey said.

HEALTHCARE

Aligned with the Government’s commitment to ensuring sound health and well-being of all ages through a preventive and promotive healthcare policies and services, the Economic Survey highlights key initiatives of the government to ensure quality healthcare for all.

The survey mentions that under Ayushman Bharat Pradhan Mantri Jan Aarogya Yojana, 34.73 crore Ayushman Bharat cards have been generated and 7.37 crore hospital admissions have been covered by the scheme as of July 8, 2024. Notably, 49 per cent of the beneficiaries are women.

Under Pradhan Mantri Jan Aushadhi Kendra scheme, which provides quality medicines at 50 to 90 per cent cheaper prices than market rates, the 10,000th Jan Aushadhi Kendra was inaugurated in AIIMS Deoghar last year.

AMRIT, or Affordable Medicines and Reliable Implants for Treatment, has seen over 300 pharmacies operating all over India. These outlets aim to provide subsidised medicines for critical illnesses.

Ayushman Bhav campaign, launched in September last year with the aim of saturating selected healthcare services in every village and town, saw 16.96 lakh wellness, yoga, and meditation sessions being conducted and 1.89 crore tele-consultations being held. Under the scheme, free drugs were given to 11.64 crore people and free diagnostics services availed to 9.28 crore people. Ante-natal check-up (ANC) and Immunisation were availed by 82.10 lakh mothers and 90.15 lakh children respectively. Around 34.39 crore people availed screening for seven types of ailments — TB, hypertension, diabetes, oral cancer, breast cancer, cervical cancer and cataract. Overall, footfall seen in 25.25 lakh Health Melas was 20.66 crore as of March 31, 2024.

The Economic Survey notes that Ayushman Bharat Digital Mission, launched in 2021, the Scheme to create a national digital health ecosystem, saw 64.86 crore Ayushman Bharat Health Accounts (ABHA) being created, 3.06 lakh health facility registries being generated, 4.06 lakh healthcare professionals being registered, and 39.77 crore health records being linked with ABHA.

The eSanjeevani scheme, launched in 2019 to provide telemedicine and virtual doctor consultations in remote areas, has 26.62 crore patients across 128 specialties at 1.25 lakh health and wellness centres, now known as Ayushman Arogya Mandirs, as of 9th July 2024, the Economic Survey says.

RURAL AMENITIES

On Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS), the Economic Survey notes that the programme has evolved into a system to generate scope for the expansion of income beyond its original role as a wage-based job generation programme. Under MGNREGS, skilling capacity of workers is being promoted in projects such as UNNATI and BareFoot Technicians. The survey adds MGNREGS demand is significantly connected to the institutional capacity of a particular state as also the difference in minimum wages.

As of July 10 this year, Pradhan Mantri Awas Yojana (Grameen) has seen the construction of 2.63 crore houses for the poor over the past nine years.

Swachh Bharat Mission (Grameen) has witnessed 11.57 crore toilets and 2.39 lakh community toilets being constructed as of July 10, 2024.

Jal Jeevan Mission has seen around 11.7 crore homes being provided with tap water under as of July 10 this year.

Digital India Campaign, 4.29 lakh service centres have become operation in rural areas as of July 2024, with greater focus on digital learning through free online channels.

Samagra Shiksha Abhiyan has been a boost for the development of school infrastructure.

Saubhagya Scheme has seen 21.4 crore rural households being electrified since 2015, as of March 31, 2019.

Pradhan Mantri Ujjwala Yojana, as of June 2 this year, has seen around 10.3 crore LPG connections being provided since 2016.

Gram Sadak Yojana has seen 15.14 lakh kilometres of roads being constructed since 2014-’15, or FY25, as of July 10 this year.

The Economic Survey states that 1.58 lakh sub health centres, 24,935 primary health centres and 5,480 community health centres have been built, while over 1.6 lakh primary healthcare centres have upgraded to Ayushman Arogya Mandir as of December 13, last year.

RURAL BANKING

As of June 26 this year, Around 9.79 crore people have registered under regional rural banks while 0.19 crore people registered under rural cooperative banks.

The Kisan Credit Card saw 465.42 lakh new applications being sanctioned as of 5 January, 2024.

RuPay debit cards have been issued to 35.7 crore beneficiaries under Pradhan Mantri Jan-Dhan Yojana as of June 26, 2024.

Direct Benefit Transfer (DBT) Schemes attracted over 104.02 crore as of September last year.

The eGramSwaraj scheme integrated with more than 2.63 lakh Panchayats as of July 10 this year.

REDUCE CHINESE IMPORTS

India needs to cut down on importing Chinese goods but ensure Chinese investment flows in, the Economic Survey advices. This could be achieved by hiking tariffs on Chinese goods and at the same time giving sops to attract Chinese foreign direct investment.