Business Standard

Impact of divergence between ministries and govt depts on economic data

Departments are most reluctant to factor in changes in the GDP within the same financial year

reforms, economy, growth,policy, manufacturing, budget, fiscal, stimulus, deficit
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Subhomoy Bhattacharjee New Delhi
Is it possible for a government department to have a different estimate of the growth of the economy than those provided by the ministry of statistics? Recently, the Central Electricity Authority has made a projection for national electricity demand based on estimates of GDP growth which has apparently not found favour with the power ministry. A Business Standard report notes the CEA used three GDP estimates, from 6.5 to 8 per cent, to develop its demand model. Projections using a range, as the CEA has done, is a standard practice for regulators across the world. 

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