There will be further delay in change of economic indicators


Posted on 2nd Jun 2020 11:56 am by rohit kumar

The government's plan to conduct a consumer expenditure survey in 2020-21 has been derailed due to the recession caused by Coronavirus. This will further delay the exercise of change in the country's macroeconomic indicators, whose questions are being raised about the quality of the data.

Changing the base year of the Consumer Price Index and GDP from 2011-12 and 2012, respectively, depended on the results of the 2017-18 Consumer Expenditure Survey, which the government has recently decided to drop. Apart from this, field surveys are also facing challenges due to the epidemic and there is concern that the current year cannot be considered as a normal economic year.

 

As part of the change in the base year, a change of 5 years has been recommended to include structural changes in spending pattern. However, this should be a normal economic year. The government had earlier decided to change the base year 2011-12 to 2017-18. If the survey is done in 2021-22 or 2022-23, then the change in base year is likely to happen only in 2025-26 and it will change after more than 15 years.

 

Former Chief Statistician of India Pranab Sen, who currently heads the Quality Improvement Committee of Indian Statistics, told Business Standard that CPI and GDP are 'severely out of date' and need to be changed.

 

He said, 'GDP on the basis of 2011-12 is already very old. It should have changed around 2017-18, and that is why the consumer expenditure survey was done. He said that in 2020-21, when the survey is being completely rejected, the government will have to do so in 2021-22 and also to see whether it will be a normal year or not. Sen said, "There will be a negative growth rate in FY21. But even if you come out of it, the base year can be chosen only if the situation is normal. The base should include a stable economy. ' Sen has projected GDP growth to be -10.8 percent, of which the first three quarters will have negative growth rates.

 

The rating agency Crisil has projected the biggest slowdown in the country's history in 2020-21, when GDP will register a negative growth rate of 5 percent.

 

Prior to this, the base year of GDP was made from 2004-05 to 2011-12. The 2008 SNA Guidelines recommend a change in Aadhaar every five years. In the earlier case, the base year of GDP was to be raised from 2004-05 to 2009-10, but due to financial crisis and drought, it was an unusual year, the base year of 2011-12 was made.

 

PC Mohan, former chairman of the National Statistical Commission, said that all statistical activity has stabilized because it is almost impossible to collect data for the next few months due to the coronavirus epidemic. He said that the current year will not be a normal year.

 

He said, "There is a need to change CPI more than GDP because the ways of consumption of people have changed and it needs to be changed." On the other hand, there is not much to worry about GDP. This can be continued for some more time on the current base year as the data of the companies are being updated on the MCA21 database. '

 

The entire expenditure in the national account depends on the consumer expenditure survey. It is an indicator of trade, private investments, government expenditure and demand.

2 Like 0 Dislike
Previous news Next news
Other news

Parliament Session 2024: The President also spoke on the paper leak case, and mentioned it during the address in Parliament

President Draupadi Murmu gave her first address in Parliament after the formation of the NDA gove

Suryakumar Yadav: India Vs West Indies Suryakumar Yadav became Player of the Match for the 12th time in his 51st match, just two steps away from Virat's record

India defeated West Indies by seven wickets in the third T20. With this victory, Team India made

Tripura: President Draupadi Murmu will visit Tripura on Wednesday on a two-day visit

President Draupadi Murmu is coming on a two-day visit to Tripura on Wednesday. During this, she w

Illegal construction is being removed near the temple in Sambhal, and house owners themselves are getting the balconies demolished.

The owner of a house located near the Shiv-Hanuman temple in Sambhal removed a portion of his hou

Relaxation in corona restrictions in Delhi, offices will work with 100% capacity, some relief in night curfew too

Because of the weakening of the third wave of Corona, a decision has been taken to relax the rest

Pune Porsche Case: Blood samples of the teenager's mother were taken, and sent to a lab for DNA testing in the swap case

Two IT engineers lost their lives in a Porsche car accident in Pune, Maharashtra. The car driver,

T20 WC: Women's T20 World Cup starts today, 10 teams will compete to become the winner, and India is a strong contender to win the title

The excitement of the Women's T20 World Cup is ready to reach its peak. It remains to be seen whe

'Attempt to confuse people on Waqf Bill', Jagdambika Pal attacked the All India Muslim Personal Law Board.

BJP MP and Chairman of the Joint Parliamentary Committee (JPC) on the Waqf (Amendment) Bill 2024

9 Vedacharyas of Kashi-Ayodhya will conduct Ramarcha Pooja for 6 hours, Sangh chief Mohan Bhagwat will reach today

Today is the second day of the three-day ritual for the construction of the Ram temple in Ayodhya

Shock: 50 crore assets of Air India and IATA seized in Canada, know what is the reason here

A Canadian court has given a strong blow to India. The court ordered the confiscation of the asse

Sign up to write
Sign up now if you have flare of writing..
Login   |   Register
Follow Us
Indyaspeak @ Facebook Indyaspeak @ Twitter Indyaspeak @ Pinterest RSS



Play Free Quiz and Win Cash