House panel demands new method to guage economy
Since computing economic growth numbers with 2011-12 as the base year has raised more questions than answers, a Parliamentary Committee has demanded more realistic computation method which reflects the momentum of actual economic activities across the sectors.
The Standing Committee on Finance said that lack of reliable and quality data poses a serious challenge to economic policy-making and its revival especially for employment. It recommended that the Ministry of Statistics and Programme Implementation examine the possibility of revising national accounts annually to preempt controversies and debates that are being generated at present.
The GDP computations are based on accounting information available with producing entities. However in India, with a large informal sector, there is a large segment of the economy for which regular accounts information is not available and their contribution can only be assessed from surveys on unincorporated enterprises conducted usually with a five-year interval.
“Needless to emphasise, lack of reliable and quality data poses a serious challenge to economic policy-making and its revival especially for employment. The committee would therefore urge the government to deploy the infrastructure available with the MOSPI for collecting regular and up-to-date data on vital parameters like unemployment,” it said. Unlike in developed countries, where macroeconomic data is released every month, the NSSO conducts surveys on employment only once every five years.
Disclaimer: Please write your correct name and email address. Kindly do not post any personal, abusive, defamatory, infringing, obscene, indecent, discriminatory or unlawful or similar comments. Konkanworld.com will not be responsible for any defamatory message posted under this article. Please note that under 66A of the IT Act, sending offensive or menacing messages through electronic communication service and sending false messages to cheat, mislead or deceive people or to cause annoyance to them is punishable. It is obligatory on Konkanworld.com to provide the IP address and other details of senders of such comments, to the authority concerned upon request. Hence, sending offensive comments using Konkanworld.com will be purely at your own risk, and in no way will Konkanworld.com be held responsible. Similarly, Konkanworld.com reserves the right to edit / block / delete the messages without notice any content received from readers.