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Saturday, May 11, 2019

Data Gaps In GDP Calculation Will Be Resolved: GOVT

Data Gaps In GDP Calculation Will Be Resolved: GOVT  https://bestinvestmentpropertyinindia.blogspot.com/

The ministry of statistics and programme implementation (MoSPI) has downplayed the controversy around India's gross domestic products(GDP) data after a National Sample Survey Office(NSSO) report raised serious questions on the quality of the MCA-21database, which is used in India's GDP calculations, triggering, political accusations of data manupulations.
The NSSO report, findings of which were first published in Mint on Wednesday, found that 36% of companies MCA-21 database maintained by the ministry of corporate affairs MCA could not be trased or were wrongly classified.
India's new GDP series, which was published in January 2015 and moved the base year from 2004-05 to 2011-12, uses the MCA-21 database to calculate the country'seconomic output. The series did not use this database, which is only available from 2006-07 onwards.
An MoSPI statement issued on wednesday said the NSSO survey was commissioned to understand the data gaps in the MCA-21 database and take remedial steps.
The statement also said these issue will be resolved in the proposed revision of GDP figures to the 2017-18 series and added that ''the result of this NSS report will be further examined by the Advisory Commitee before finalizing the approach methodology foe the proposed 2017-18 series''.
The statement also downplayedthe impact of gaps. ''It emphasised that there is no impact on the existing GDP/GVA (gross value added) estimates for the corporate sector as due care is taken to appropriately adjust the corporate fillings at the aggregate level based on the paid up capital,'' it said.
The ministry also clarified that the 2011-12 series had been using the corporate sector data available from the MCA in its estimstes and the ministry had conducted the survey to find out the verasity of the data used.
What the NSSO survey has revealed is a large number of companies in the MCA-21 database are shell companies, Dr. Proneb Sen, India's former chief statistician, said  This does not mean that their economic output should not be included in the GDP, figures and hense there will not be abig impact on headline growth figures.

Data Gaps In GDP https://bestinvestmentpropertyinindia.blogspot.com/

However, a large presence of shell companies in GDP inputs can give misleading ideas about the sectoral composition of the GDP as a parent company which has shifted its books to a shell company might have done so in a completely different sector, he added.
The opposition attacked the government,accusing it of fudging crucial data. ''To cover up the gross mismanagement of a economy, which has cost us growth and jobs the government is now indulging in doctored statistics. Numerous experts have raised questions on revised GDP numbers and how they have been calculated. Now we can see that these figures have been raised on a foundation of false hood and fake companies. To look good and to fool the people, the intigrity of reputed statistical is in peril. That is one more system just destroyed,'' Congress MP and chairman of the party's research department, Rajeev Gowda, said.
Left parties critisized the government for overestimation of growth. ''It is now clear that growth has been overestimsted to misguide the people. This is straight away manipulation of data and therefore a fraud being played on the people,'' said  Tapan Sen, a politburo member of the communist party of India (Marxist).
Sen said institutions like the Central Statistics Officers (CSO)  had aquired great credibility over the years but it had been compromised  because of Modi's style of functioning which is aimed at manipulating all institutions''.
Communist party of India leader D Raja said this party has demanded and also pledged in its menifesto ''statutory status'' for the CSO to protect it from manipulation. ''The government makes tall claims about GDP numbers but the macro-level claims don't match the micro-level reality,'' Raja said.
Bhartiya Janta Party spokes person Gopal Aggarwal said that at times survey haad limitations with regard to sample size and selection of questionaire, and their sequence.''All these have a bearing on the final conclusions. Therefore, proper checking and verification is required without which the quality of data will suffer,''he said.








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