Express View on weaknesses in statistical system: Plug the data gaps

Source– The post is based on the article “Express View on weaknesses in statistical system: Plug the data gaps” published in “The Indian Express” on 19th July 2023.

Syllabus : GS2- Government policies and interventions

Relevance: Issues related to statistical exercise by government

News- The government has now expanded the scope of the 2019 committee on economic statistics to also advise on survey methodology, including the sampling frame and sample design.

What are issues with government statistical exercise?

There are issues related to quality and accuracy of the data that is collected. There are concerns regarding the suppression of data, and political interference in the statistical institutions.

The NSS surveys on consumption expenditure have consistently underestimated household consumption expenditure in comparison to the estimates derived from national account statistics.

The results of the consumption expenditure survey conducted for the year 2017-18 have not been made available due to concerns regarding its quality. This particular survey is essential for estimating poverty and inequality levels in India.

The survey is also utilized in calculating various indicators including the consumer price index, which holds significance for monetary policy considerations.

What is the way forward to improve the government statistics?

Questions raised over survey mechanisms, overestimation of rural population and low response rate will need to be addressed. As will issues of data quality.

There is a need to address the issues related to collection and dissemination of data even if they are politically uncomfortable. The lack of data only compounds the problem.

The need to address weakness and gaps in the country’s statistical apparatus cannot be denied. But, casting doubt on the accuracy and reliability of data if it does not conform to a specific narrative is not the right thing. Policy cannot be formulated in a data vacuum.