As part of the ongoing exercise to update the GDP base year, the government will use several more datasets on the expenditure side to improve the sources of data and enable more accurate estimation of national accounts. Enhanced use of household consumption expenditure survey data, direct estimates using production for estimating private final consumption expenditure and compilation of gross fixed capital formation in Intellectual Property Products (IPP) assets are some of the new changes planned.
In a discussion paper issued on Tuesday, the Ministry of Statistics and Programme Implementation (MoSPI) has proposed improvements in the compilation of GDP from the expenditure approach and sought comments from stakeholders. The production side methodology is used to estimate private final consumption expenditure, gross capital formation and government side consumption expenditure.
The new GDP series with a base year of 2022-23 is set to be released on February 27, 2026. “GDP back series estimates are historical economic data points that have been recalculated to be consistent with a newer, revised methodology and base year,” said the ministry in the discussion paper, adding that it plans to publish the back series of GDP estimates on the revised base year within one year.
The ministry had previously released the first discussion paper on changes in the compilation of aggregates based on the production/income approach on November 21.
An Advisory Committee on National Account Statistics (ACNAS) under the chairmanship of Professor B.N. Goldar has been constituted to advise MoSPI, among other things, on the inclusion of new data sources for improving the estimates of National Accounts, and the methodology for compilation and presentation of National Accounts Statistics for purposes of economic analysis and policy formulation.
