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Government do not use back series GDP figures for propaganda, says Arun Jaitley

Updated : December 06, 2018 07:08 AM IST

The revision of the Gross Domestic Product (GDP) is not a matter of propaganda and there has been a revision of the base year for calculating it, since independence, said finance minister Arun Jaitley.

"This has been a practice since independence. The logic here is that with the national and the global economy expanding and growing what would be the best global standards to calculate the GDP? So, in every 10-12 years, it is revised and is brought about in accordance with the best global standards so that the ground reality of the economy gets reflected in the GDP figures," Jaitley said.

The government changed the base year for GDP calculation from 2004-05 to 2011-12, by changing the goods and services in the basket to make it more current, in 2015 but needed a back series for long-term comparison of economic growth.

The government lowered the GDP growth rates for a majority of the previous 10 years of the United Progressive Alliance (UPA) regime, saying the data has been 'recalibrated' to reflect a more appropriate picture of the economy. This generated a political slugfest between the Congress and the BJP after the former claimed its economic policies to be superior.

When it was applied in a previous timeline, the GDP decreased, Jaitley said, adding that when it increased, the Congress welcomed the yardstick, when it decreased, they engaged in a political conflict calling it a cruel joke.
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