New Delhi : Critical of the recent changes in the GDP calculation formula, a Parliamentary Panel asked the government to constitute a committee of eminent economists to adopt “one acceptable methodology” based on practices followed world over. “This will put an end to the debate on the methodology,” Parliamentary Standing Committee on Finance said in its report on Statistics Ministry tabled in Lok Sabha. Last year, Central Statistics Office made certain changes to the GDP data such as changing base year and introduction of the concept of Gross Value Addition, which is internationally acceptable.
The committee noted the latest GDP data released by the CSO has raised more questions than providing answers and inputs on the momentum of economic activities across the country. The panel observed that it (new data) does not seem to corroborate real economic activities, such as corporate profitability or credit growth. It said the new methodology, which includes component of indirect taxes, only reflects inflated GDP figures rather than increased output. The robust growth estimates in the face of slump and downturn in certain sectors also raises a critical point on the credibility and reliability of statistical data collected for various economic measures such as GDP; a concern flagged by several economists including the RBI Governor, it said.
