Economic Survey: Themes chosen this year are along expected lines

Focus is on Universal Basic Income; even if it can't be implemented now, it can certainly be debated

The report on demonetisation by the Economic Survey 2016-17 is frank and far from effusive on the impact the measure has had on impounding black money. “Formalisation should reduce the flow of unaccounted income” is the laconic observation by the government’s flagship annual document on the economy. The tone of the assessment made as part of the detailed sector by sector scorecard on demonetisation instead of a self congratulatory assessment was quite necessary at this juncture.

In the process the Survey, authored by the finance ministry’s economic division led by chief economic advisor Arvind Subramanian, ensures that their assessment of the rest of the economic themes carries conviction.

This tone has also become the signature of the Economic Survey in recent years. Last year it had drawn attention to 10 themes addressed chapter-wise, written in a fluid style combining elements of economic papers, yet addressing the need to make those simple to follow for a highly varied audience. There are 13 such this year in the Economic Survey 2016-17 presented today in parliament by the Finance Minister Shri Arun Jaitley, carries forward the successful format. It has also carried forward the new format begun two years of ago of splitting the Survey into two volumes. The second one will be presented later, this year.

The themes chosen by the CEA this time other than demonetisation are not unexpected. There are no omissions here, though it would have been more educative to have had more detailed treatment of digital economy. But since there is already a report by former finance secretary, Ratan Watal on it followed by a committee of chief ministers, the Survey has eschewed it.

There is a follow through of this government’s pet concerns like the use of Jan Dhan, Aadhaar and mobiles to make the benefits of government schemes to reach the largest possible cohort. There is also the analysis of the possibilities of labour economy in sectors like textiles—addressed last year too.

But the big discussion is reserved for Universal Basic Income. The Survey makes an assessment of the reach of central government’s flagship social schemes in six states to establish that it is an idea whose time has come. “The first striking fact is the sheer number of schemes and programmes run by the government. The Budget for 2016-17 indicates that there are about 950 central sector and centrally-sponsored sub-schemes in India accounting for about 5 per cent of the GDP by budget allocation” Cutting through the maze to a UBI as the Survey says is an idea which even if it can't be implanted now can certainly be debated. That in essence is the role of the Economic Survey.