Shell companies base for ‘GDP’

Shell companies base for ‘GDP’

The National Sample Survey Office (NSSO) of the Ministry of Statistics, which is facing the backdrop of the Lok Sabha elections, has helped the statistics of 2015 data for the assessment of GDP. On the backdrop of the Lok Sabha elections, the National Sample Survey Office of the Ministry of Statistics, Of course, in the NSSO report, To measure the pice is exposed after the 2015 aid figures. Therefore, the rejection of the total domestic product (GDP) data has raised the issue again.

In the report released last month by NSSO, the country’s GDP declined and billions of youth were unemployed. However, it has been revealed that the report has been based on the figures of four years ago. One-third of the companies mentioned in the report are either closed or classified in the wrong place. However, the same NSSO report raised questions about the reliability of the economy of the country by attacking the opposition on the policies of the central government. However, the central government had also clarified that the current GDP data will not affect the country’s development.

What is the root cause of the conflict?

In January 2015, the central government decided to change the GDP (instead of the base year 2004-05 to 2011-12). At that time, the NSSO under the Statistical Department used the database of MCA 21, Ministry of Commerce, rather than the Reserve Bank report. There was a possibility of a change in the database’s statistics.

What is the government’s explanation?

Soon after the huge number of GDP figures were reported, the Ministry of Statistics will constitute a committee of senior officials and the matter will be investigated. At the same time, these companies, which have suddenly disappeared, have no effect on the country’s GDP. According to the ministry, the report of NSSO has been used for the current situation and the measures to be taken in the future. The changes in the GDP data were made on the basis of the information available at that time, and according to the department, the GDP growth will increase as the report improves.

Argument arguments from the report

According to experts, it is wrong to include ‘shell companies’ in the calculation of ‘GDP’. Because these companies do not produce any services or commodities. At the same time, according to the government, it is necessary to include every transaction in the economy; Regardless of whether the deal was done by ‘Shell Companies’. It also affects the economy. The government is also claiming that a legitimate company is using another Shell Company for tax purposes.

The question mark is present

Four years ago, a new series of ‘GDP’ was presented in 2015. According to the new formulas, the figures of the previous government (especially the UPA) were different from the others and the central government did well in this period. The Central Statistical Department was formulating back-serial data (Statistics for 2011-12). However, now that these figures were submitted by the NITI during the Modi government, the controversy broke out. On this backdrop, the International Monetary Fund (IMF) has asked the central government to fix GDP rates in the last six months.

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