Economic Survey 2013: Difference between Rajan's and Kaushik Basu's approach

Is there a Raghuram Rajan stamp on the Economic Survey 2012-13? Yes and no. While following the broad pattern of previous Surveys, Rajan formerly Professor of Finance at the Booth School of Business, University of Chicago, has brought his own touch to an otherwise austere document. For one, it's a leaner, but not necessarily a meaner, document!

But that's not all. ET brings you a list of what’s different in this year’s Survey as compared to the Survey prepared by his predecessor, Kaushik Basu, formerly Professor of Economics at Cornell University.

Survey 2012-13

In a first the Survey opens with an Introduction by Rajan where he lists three key objectives – reviving growth to provide jobs, shifting from consumption to investment-led growth and macroeconomic stabilization to reduce inflation, the fiscal deficit and the current account deficit - and the challenges in achieving them.

It’s a more concise document – 294 pages and 127 statistical tables. (Chapters on Industry and Sustainable development & climate change shorter)

Special chapter devoted to ‘Seizing the demographic dividend’ bluntly states ‘Policy makers are usually focused on short-run economic management issues. But the short –run has to be a bridge to the long run.’

Section on ‘Prospects, Short-term and medium term’ includes summary outlines of the various chapters in the Survey

Section on ‘Outlook and challenges’ focuses on three areas : employment, better expenditure management and decentralisation



Survey 2011-12

No Introduction chapter

Longer document – 357 pages but fewer statistical tables – 125 tables

Special chapter devoted to ‘Microfoundations of macroeconomic policy’

Section on outlook and Challenges focused on fiscal prudence, improving delivery mechanisms, education, skill development