15th Finance Commission to recommend grants for statistics in second report

Experts say MoSPI can take up leadership role but states will have to do actual work

The Fifteenth Finance Commission will recommend grants for statistics in its second report, with an aim to improve statistical data collection and collation in India. This is among the various sectoral grants that the Commission has promised to award in its upcoming report, provided states and the Centre meet certain parameters. 

The move comes at a time of widespread criticism on official data in India. 

The Commission’s report for 2020-21, tabled in Parliament on the day of the Budget, recommended a marginal reduction in vertical devolution of the divisible tax pool to 41 per cent from the prevailing 42 per cent. This is due to the newly formed Union Territories of Jammu and Kashmir and Ladakh getting funds out of the Centre’s share and devolution being for 28 states now compared to 29 earlier. 

The Commission’s second report, for the award period 2021-22 to 2025-26, is expected to be submitted to the Centre in October.

“Reliable and credible statistics are central to policy formulation as well as its implementation and subsequent monitoring. The Ministry of Statistics and Programme Implementation (MoSPI) submitted a detailed proposal to us to enhance the system of data collection and dissemination related to various statistics, which is under our consideration,” the Commission said in its first report.  

“Based upon the proposal, the Commission plans to provide for grants for statistics, which will have a conditional component, to be released based upon achievement of certain milestones,” it said. 

These milestones include compilation and annual release of District Domestic Product Data, advance release calendar of relevant data, improvement in data collection, state monitoring framework for sustainable development goals, use of technology, etc. 

“During 2020-21, the MoSPI and state governments shall work closely to develop guidelines, identify and train manpower and establish reporting systems in order to achieve the milestones for 2021-22 onwards,” the report stated. 

Experts say while the MoSPI can take a guiding or a leadership role, the actual work will have to be done by states.

“It has to be the states. The MoSPI can at most monitor. But according to constitutional provisions, this is the provision of states. But for a central allocation, where money is being given by the central based on data which is the domain of states, that creates a conflict of interest,” said former Chief Statistician Pronab Sen, who is heading a high-level panel to review and develop the country’s surveys on employment, industry and services sector.

Sen pointed out that the 13th Finance Commission also spoke about improving data. In its report, the 13th Commission had recommended grants for improvement of statistics in district and state level.

Milestones given by the Commission

• Compilation and annual release of district domestic product (DDP)

• Compilation and monthly release of state index of IIP and CPI

• State monitoring framework for sustainable development goals and dynamic updation with National SDG Dashboard

• Publication of a monthly, quarterly and annual advance release calendar

• Participation in National Sample Surveys and release of estimates at the sub-state/district levels within one year of completion of the survey

• Using technology for data-capture through Computer Assisted Personal Interviewing mode, validation and processing

• Implementing dynamic updation of the proposed National Business Register

• Innovations for improvements in administrative statistics like establishment and household registries, land records, etc

• Dynamic updation with the national integrated information portal being developed by MoSPI

Source: 15th FC report