sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
Latest Expert Exchange
« Auditing »
 Supreme Court puts the spotlight on audit firms
 Auditing to be less of a burden as accountants embrace AI
 CAG's report on GST will be totally paperless
 Time Limit For Completion Of Assessment From The Date Of Special Auditor’s Report Under Income Tax Act, 1961
 Provisioning pertaining to Fraud Accounts
 Tax Audit Report (TAR) Certain exceptions and increased limits according to number of partners and considering nature of activity are desirable
 Cost Auditing Standards [ Cost Audit Documentation (102)] – Part-II
 Conference on Companies Act gets under way
 New bureau to dissolve state-run banks' power to choose auditors
 Foreign Exchange Management (Permissible Capital Account Transactions) (Fourth Amendment) Regulations, 2015
 ICAI forms 'prima facie' view on NSEL auditor

On NSC's order, Govt. starts audit of economic data
October, 08th 2010

In a first-of-its-kind exercise, the National Statistical Commission (NSC) has ordered an audit of the process used in the construction of economic data, starting with the Index of Industrial Production (IIP).

The move comes amid criticism of the quality of data dished out by various government agencies, including the Central Statistical Organisation. Just last month, the Reserve Bank of India (RBI) had termed the industrial growth figures highly volatile and expressed doubts about how effectively the index reflected the underlying momentum in the industrial sector. A few days before that, CSO had issued a corrigendum on the national accounts data. Even earlier, RBI had questioned the inflation data released by the government.

We are just beginning this exercise and the first audit has been ordered for IIP. With this, we hope to learn both about how we will do statistical audits in future and then develop mechanisms to strengthen the system, Chief Statistician T C A Anant told Business Standard in an interview.

The audit will be undertaken by the Ministry of Statistics and Programme Implementation (Mospi), under the direction of the five-member NSC, headed by R Radhakrishna.

The idea of a statistical audit was not new. One of the mandates of the NSC had been to conduct statistical audit for every important macroeconomic data series. In a decentralised statistical system, an audit went a long way in identifying and improving statistical gaps that resulted from difference in administrative processes and functions of various agencies involved in data collection, officials in the statistics ministry said.

The results of the audit will be put in the public domain. This is expected to generate transparency and instil confidence in the way these numbers are generated, Anant added.

The IIP data is compiled by Mospi after receiving data from different ministries and state agencies. Mospi is not directly involved with the primary data collection, though it is responsible for maintaining the quality of the data. For that purpose, Mospi, along with various state agencies, conducts periodic sample surveys used to maintain the quality of the data received on a monthly basis. Such a sample, in the case of the IIP, is the Annual Survey of Industries (ASI).

The latest IIP numbers, which estimated the growth at 13.8 per cent, led by a 63 per cent growth in capital goods, was criticised for being exaggerated. An exercise conducted by Business Standard showed the growth should be around 22 per cent.

Moreover, in the past, the data series has witnessed several revisions and analysts have complained of eroding reliance on provisional figures. Such a reaction was prompted by a sharp decline in the revised industrial growth for June 2010 to 5.8 per cent, from a provisional estimate of 7.1 per cent.

Yes, we have received complaints and we are working on it. But, it is not a reaction to those complaints. We are aware of the deficiencies in our data system and the audit will help matters, said another statistics ministry official who did not wish to be identified.

The audit will look into every state and central agency involved in data collection for IIP. It will go into the various sources from which data are collected to identify gaps and areas of inefficiency. The ministry intends to initiate corrective measures to fill the gaps that the report identifies.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2018 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Quality Assurance Services Testing and Re-testing

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions