New Delhi: What Manmohan said as 4.7, is now 6.9 as per Modi’s calculation. A change in base year for computing GDP ( Gross Domestic Product) pushed up the economic growth rate for 2013-14 to 6.9 per cent, while earlier estimate on the basis of old series was 4.7 per cent.
Similarly, the economic growth rate for 2012-13 has been considered as 5.1 percent, instead of 4.5 percent estimated earlier. Such a change occurred since the base for calculating national accounts has been changed to 2011-12 from 2004-05.The base year was last revised in January 2010.
Such a change in figure could cheer up UPA leaders. Former Finance Minister P Chidambaram said that the revised GDP data, which has pegged the growth rate for 2013-14 at 6.9 per cent, conclusively establishes that the UPA government had put the economy back on the growth path.
According to him, NDA leaders criticized them as growth rate was less than 5 %, but situation was no as bad as it was campaigned by Narendra modi and his associates.
Chidambaram said, “Data released today and the other economic indicators conclusively establish that the UPA government succeeded in substantial measure on all the four objectives,”
On the other side some in Government predict the change will help bring down the fiscal deficit as a share of gross domestic product, making it easier for Modi to trim the gap to a seven-year low of 4.1 percent in the year to March despite a shortfall in revenue.
But the frequent GDP revisions and other deficient data are a headache for economic planners.