Express View on delay of Consumption Expenditure Surveys, census: Let data flow

Source: The post is based on the article “Express View on delay of Consumption Expenditure Surveys, census: Let data flow” published in the Indian Express on 21st April 2023.

Syllabus: GS-2: Important aspects of governance, transparency and accountability.

Relevance: About the implications of delaying surveys.

News: India’s own census enumeration exercise which was meant to take place in 2021 has now been postponed to 2024-25. Similarly, results of the National Statistical Office’s consumption expenditure survey 2022-23 may now be released only after the general elections in 2024.

Note: The 2017-18 consumption expenditure survey was junked by the government due to “quality issues”.

What are the implications of delaying surveys?

Absence of credible data: The major utility of the consumption expenditure data is estimating poverty and inequality. With no recent consumption expenditure survey, there is little consensus on the trends in poverty and inequality. Further, several economists will put forth their estimates based on different data sources and present differing assessments. For instance, the “State of Working India 2021” report estimated a sharp increase in poverty during the pandemic. On the other hand, few other experts estimated reduction in poverty.

Reliance on other datasets increases: The utility of the consumption expenditure data is not limited to estimating poverty and inequality. These surveys are also used for rebasing GDP and CPI. In the absence of such surveys, reliance on other datasets only increases.

Limit the policymaker’s option: The absence of credible data affects the ability of policymakers to make well-judged choices.

What should be done?

Data that is accurate and timely forms the bedrock of policy-making. Hence, measures need to be taken to strengthen the statistical system and safeguard its independence in situations such as pandemics and elections.