NEW DELHI: A document by the National Sample Service Office (NSSO) on the services and products sector printed that at least 38% of the corporations within the MCA-21 database used for calculating GDP numbers were either out of protection or untraceable. According to some economists, this could result in overestimation of GDP information and can have an have an effect on on the final numbers.
What does the federal government say to defend its information system?
The results of this NSSO document can be examined by the advisory committee, earlier than finalising the way and technique for the proposed new 2017-18 collection.
The ministry of statistics and programme implementation (MOSPI) stated that there is no have an effect on on the present GDP/GVA (gross price added) estimates for the corporate sector as care is taken to as it should be adjust the corporate filings at the aggregate stage, according to the paidup capital.
What is the new technique for estimating GDP?
In June 2015, MOSPI unveiled the new collection of national accounts with the 2011-12 base yr and in addition inducted a new technique and data assets. The main elements influencing the prevailing revision include:
A) Revision of base yr to a newer yr.
B) Complete assessment of present information base and technique hired within the estimation of more than a few macro-economic aggregates, including collection of the alternative databases on person topics.
What are the new assets for calculating GDP information?
In 2004-05 collection, the personal company sector was being covered by the usage of RBI learn about on company funds. Estimates were compiled on the foundation of financial results of around 2,500 corporations.
In 2011-12 collection, comprehensive protection of company sector has been ensured in mining, manufacturing and services and products by incorporating annual accounts of companies as filed with the ministry of company affairs (MCA) under their e-governance initiative MCA-21.
Accounts of about five lakh corporations were analysed and integrated for 2011-12 and 2012-13, whilst the number of commonplace corporations (for which accounts are available for 2012-13) is around 3 lakh for 2013-14.
In the new collection, the protection of financial sector has been expanded by including stock brokers, stock exchanges, asset control corporations, mutual price range and pension price range, as well as the regulatory bodies — Sebi, PFRDA and IRDA. The new collection also has an stepped forward protection of local bodies and institutions.
Efforts were made to make use of as much present information as possible and results of latest available surveys on employment-unemployment, shopper expenditure, cattle census, housing and inhabitants census, development sector, among others were incorporated.
What economists are saying?
The new GDP collection is no stranger to controversy. Several experts had issues with the new estimation. The executive has stoutly defended the method, which it says conforms to world requirements.
Pronab Sen, former leader statistician of India, whilst regarding the talk, has stated NSSO survey on services and products sector showed that the number of shell corporations is huge. He stated huge number of shell corporations does now not result in overestimation of GDP. Sen stated if the price created by shell corporations is not captured then there is a threat of underestimating GDP.
N R Bhanumurthy, professor at National Institute of Public Finance & Policy, stated that discrepancies between NSSO surveys and national accounts statistics are long status. He stated it is mistaken to infer that GDP is overrated as NSSO survey has pointed to numerous corporations as untraceable. “There are different technical issues, an empirical examination of NSSO might help.”
What does the federal government say to defend its information system?
The results of this NSSO document can be examined by the advisory committee, earlier than finalising the way and technique for the proposed new 2017-18 collection.
The ministry of statistics and programme implementation (MOSPI) stated that there is no have an effect on on the present GDP/GVA (gross price added) estimates for the corporate sector as care is taken to as it should be adjust the corporate filings at the aggregate stage, according to the paidup capital.
What is the new technique for estimating GDP?
In June 2015, MOSPI unveiled the new collection of national accounts with the 2011-12 base yr and in addition inducted a new technique and data assets. The main elements influencing the prevailing revision include:
A) Revision of base yr to a newer yr.
B) Complete assessment of present information base and technique hired within the estimation of more than a few macro-economic aggregates, including collection of the alternative databases on person topics.
What are the new assets for calculating GDP information?
In 2004-05 collection, the personal company sector was being covered by the usage of RBI learn about on company funds. Estimates were compiled on the foundation of financial results of around 2,500 corporations.
In 2011-12 collection, comprehensive protection of company sector has been ensured in mining, manufacturing and services and products by incorporating annual accounts of companies as filed with the ministry of company affairs (MCA) under their e-governance initiative MCA-21.
Accounts of about five lakh corporations were analysed and integrated for 2011-12 and 2012-13, whilst the number of commonplace corporations (for which accounts are available for 2012-13) is around 3 lakh for 2013-14.
In the new collection, the protection of financial sector has been expanded by including stock brokers, stock exchanges, asset control corporations, mutual price range and pension price range, as well as the regulatory bodies — Sebi, PFRDA and IRDA. The new collection also has an stepped forward protection of local bodies and institutions.
Efforts were made to make use of as much present information as possible and results of latest available surveys on employment-unemployment, shopper expenditure, cattle census, housing and inhabitants census, development sector, among others were incorporated.
What economists are saying?
The new GDP collection is no stranger to controversy. Several experts had issues with the new estimation. The executive has stoutly defended the method, which it says conforms to world requirements.
Pronab Sen, former leader statistician of India, whilst regarding the talk, has stated NSSO survey on services and products sector showed that the number of shell corporations is huge. He stated huge number of shell corporations does now not result in overestimation of GDP. Sen stated if the price created by shell corporations is not captured then there is a threat of underestimating GDP.
N R Bhanumurthy, professor at National Institute of Public Finance & Policy, stated that discrepancies between NSSO surveys and national accounts statistics are long status. He stated it is mistaken to infer that GDP is overrated as NSSO survey has pointed to numerous corporations as untraceable. “There are different technical issues, an empirical examination of NSSO might help.”
Controversy over GDP data explained
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Reviewed by Kailash
on
May 11, 2019
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