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With the Budget presentation advanced by almost a month, the Finance Ministry is unlikely to present a mid-year report card of the economy from this fiscal.
Though the official date of the Budget is yet to be finalised, the government is left with little time to present a mid-year review. A senior government official said the practice of mid-year review may be discontinued altogether, “as it would mean duplication of our efforts to not only prepare the report but also the Budget.” The Mid-Year Economic Analysis, which is traditionally tabled by the Finance Ministry in the Winter Session of Parliament, is seen as a stock-taking exercise over a variety of parameters set in the Budget such as growth, inflation and current account and fiscal deficits of the current fiscal and also indicates the priorities for the year ahead.
It also sets the government’s agenda in the economic sphere for the remaining months of the financial year.
However, the Finance Ministry may still submit a status report on the implementation of major announcements in the Budget as well as the statement under the Fiscal Responsibility and Budget Management Act, sources said. The reports are usually submitted as an annexure in the mid-year review.
Status report“The status report increases the government’s accountability and is likely to be tabled this year too,” said another official, adding that the statement under FRBM is also legally mandated.
“Depending on the report of the FRBM Committee, this may also be discontinued in later years,” he added.
The move comes after the Centre decided to advance the date of the presentation of the Union Budget by a month to the first week of February to ensure that the process is completed before the start of the new financial year.
As a result, the Winter Session of Parliament, which used to start in late November and continue into December, has now been slightly advanced. The session will start on November 16.
The Finance Ministry has already initiated pre-Budget discussions and has sought suggestions on tax policies from stakeholders.
Similarly, the Economic Division, led by Chief Economic Adviser to the Finance Ministry Arvind Subramanian, has also initiated work on the Economic Survey, which will be presented along with the Budget.
NITI Aayog’s three-year vision document for the economy is also likely to be finalised by early next year, and could be presented in late January or early February.
“The 15-year vision document will take some more time, but work is in full swing on the three-year action plan and it will be presented in the next few months,” said a person familiar with the development.
The three-year action plan, which would outline the government’s key focus areas, is being seen as providing pointers to the Budget.
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