Chief Economic Advisor

Subject – Economy

Context – CEA takes a dig at ‘freebie culture’

Concept –

India’s Chief Economic Advisor KV Subramanian exhorted State governments to focus on ushering in supply-side reforms and increase capital expenditure to attract private investment, instead of spending taxpayers’ money on revenue expenditure in the form of freebies and doles.

About CEA –

The Chief Economic Adviser (CEA) is a post in Government of India and is equivalent to rank of Secretary to the Government of India.
The CEA is the ex-officio cadre controlling authority of the Indian Economic Service.
The CEA is head of Economic Division of the Department of Economic Affairs, Ministry of Finance, Government of India.
Until 2009, the CEA’s position was a Union Public Service Commission appointment and until the 1970s almost all CEAs were members of the Indian Economic Service.
The CEA reports directly to the Minister of Finance.

Functions –

The key roles of India’s chief economic advisor are to determine the government’s overall strategy in managing the economy. The Chief Economic Advisor (CEA) advises the Government of India on matters related to finance, commerce, trade, economy.
The Economic Division examines domestic and international economic trends. It undertakes research studies focusing on economic policies and management of the economy. Based on the research it provides advice to the Government of India.
The CEA is the ex-officio cadre controlling authority of the Indian Economic Service.
Help prepare the government’s annual Economic Survey preceding the Union Budget, which provides a glimpse into its economic hits and misses.
Study and advice about financial market risks.
To help with advice in times of global turmoil.
To contribute in preparing the budget.