On Day 20, you will focus on two crucial topics in Indian Economy:
- Union Budget – Its importance, structure, components, and impact on the economy.
- Economic Survey – Key highlights, trends, and policy recommendations.
Both these topics are highly important for UPSC Prelims and have direct implications for GS Paper 3 in Mains. Questions from Budget and Economic Survey are almost guaranteed in the exam, so a strong conceptual grasp is essential.
📌 Topic 1: Union Budget
What is the Union Budget?
The Union Budget is the annual financial statement of the Government of India, presented by the Finance Minister in Parliament (Article 112 of the Indian Constitution). It details:
✅ Government’s revenue & expenditure for the upcoming financial year.
✅ Policy measures and economic priorities for growth and development.
✅ Allocation of funds to different sectors.
Objectives of the Budget
🔹 Economic Growth – Stimulating investments and production.
🔹 Redistribution of Wealth – Welfare schemes for poverty reduction.
🔹 Controlling Inflation & Unemployment – Managing prices and job creation.
🔹 Fiscal Deficit Management – Balancing revenue and expenditure.
Components of the Budget
The Budget is divided into two major parts:
1. Revenue Budget
🟢 Revenue Receipts – Income of the government from tax and non-tax sources.
- Tax Revenue – Direct (Income Tax, Corporate Tax) & Indirect (GST, Customs).
- Non-Tax Revenue – Dividends, profits from PSUs, fees, fines, interest, etc.
🟢 Revenue Expenditure – Expenditures that do not create assets.
- Salaries, pensions, interest payments, subsidies, welfare schemes.
2. Capital Budget
🟢 Capital Receipts – Loans, borrowings, disinvestment, recovery of loans.
🟢 Capital Expenditure – Asset creation (infrastructure, schools, hospitals, defense equipment).
Types of Budget Deficits
📌 Fiscal Deficit = Total expenditure – Total revenue (excluding borrowings).
📌 Revenue Deficit = Revenue expenditure – Revenue receipts.
📌 Primary Deficit = Fiscal deficit – Interest payments.
How the Budget Impacts the Economy
- Fiscal Policy & Taxation – Determines economic growth, investment, inflation.
- Sector-wise Allocation – Infrastructure, healthcare, education, agriculture, defense.
- Social Welfare Schemes – MGNREGA, Ayushman Bharat, PLI Scheme.
- Employment Generation – Startups, MSMEs, Rural Skill Development.
🔗 Best Reference Links for Union Budget
- Official Budget Document: https://www.indiabudget.gov.in/
- Ministry of Finance (PIB Reports): https://pib.gov.in/
- Economic Times Budget Analysis: https://economictimes.indiatimes.com/
📌 Topic 2: Economic Survey
What is the Economic Survey?
The Economic Survey is an annual report released by the Ministry of Finance before the Budget. It presents:
✅ India’s economic performance in the past year.
✅ Growth trends & macroeconomic indicators (GDP, inflation, employment).
✅ Policy recommendations for future economic strategies.
Structure of the Economic Survey
The Survey is generally divided into two volumes:
📌 Volume 1 (Theoretical & Analytical Part)
- Covers policy suggestions, economic trends, structural reforms.
- Discusses big ideas, innovations, and economic principles.
📌 Volume 2 (Data & Statistical Part)
- Provides factual data on GDP, inflation, fiscal deficit, trade, agriculture.
Key Indicators in Economic Survey
| Indicator | Explanation |
|---|---|
| GDP Growth Rate | Measures the overall economic growth of India. |
| Inflation (CPI & WPI) | Price rise affecting purchasing power. |
| Unemployment Rate | Joblessness in the economy (PLFS Report). |
| Fiscal Deficit | Government borrowing requirement. |
| Current Account Deficit (CAD) | Balance of imports vs exports. |
| Forex Reserves | India’s external liquidity strength. |
Recent Themes from Economic Survey
🟢 K-shaped Recovery Post-COVID – Uneven recovery in different sectors.
🟢 Digital Economy Boom – Growth in fintech, UPI transactions.
🟢 Make in India & Atmanirbhar Bharat – Push for manufacturing self-reliance.
🟢 Employment Trends & MSME Sector Revival – Role of Startups, job creation.
How to Read Economic Survey for UPSC?
✅ Focus on key chapters, policy suggestions, statistics.
✅ Understand big-picture ideas from Volume 1.
✅ Memorize data & figures from Volume 2 for MCQs.
✅ Compare the Economic Survey trends with Budget allocations.
🔗 Best Reference Links for Economic Survey
- Official Economic Survey Reports: https://www.indiabudget.gov.in/economicsurvey/
- PRS India Summary of Economic Survey: https://prsindia.org/
- Finance Ministry PIB Analysis: https://pib.gov.in/
📚 Study Tasks for Day 20
✅ Read Summary of Union Budget (Govt website or PRS India).
✅ Read Economic Survey Highlights from PIB.
✅ Solve 10-15 previous year questions on Budget & Economic Survey.
✅ Make short notes on key statistics, deficits, and reforms.
💪 Moral Strength for Your UPSC Journey
🌟 “Success doesn’t come from what you do occasionally, but from what you do consistently.”
You are moving forward every day, step by step, towards your dream. UPSC is not just an exam; it’s a test of perseverance, discipline, and mental strength.
🚀 Keep believing in yourself.
💪 Stay committed.
🔥 You are stronger than your excuses.
One day, you will look back and realize that all these hours of hard work led you to your goal. Stay focused, stay determined, and you WILL achieve success! 💙🔥