Jaitley defends revision in GDP data; Chidambaram calls it 'hatchet job'

As a political row broke out over the back series GDP data, Finance Minister Arun Jaitley Thursday jumped in to defend the downward revision in growth rates during the previous UPA regime, saying the new numbers were reflective of real state of the economy.

With his predecessor P Chidambaram calling revised GDP growth rates "a bad joke" and "a hatchet job", Jaitley took the attack to the opposition camp saying the Congress leader had previously welcomed the GDP numbers based on a new series when the data was revised upwards for the last two years of the UPA regime but is now criticising when the same formula has been used to re-state the numbers of previous years.

"The new series is more broad-based and is a better reflection of the Indian economy. It is globally more comparable," he said as he defended the work of Central Statistics Office (CSO) -- the agency responsible for collating the data. "The CSO is a highly credible organisation, it maintains an arm's length distance from the finance ministry."
Chidambaram, however, called the exercise a "bad joke". "Now that NITI Aayog has done the hatchet job, it is time to wind up the utterly worthless body," he tweeted. "The earlier numbers were calculated by the National Statistical Commission. Has the Commission been disbanded?"
Former Chief Statistician Pronab Sen, he said, is absolutely correct. "Niti Aayog has nothing to do with tabulation of data."
He defended the Wednesday's press conference saying "NITIAayog uses data extensively for making logical policy recommendations. The data is always based on assessment & quality check by eminent statisticians."
"We have always had a system that data CSO brings out is completely removed from the political interference. Even the Prime Minister would get to know of the numbers just before they are released," he said. "Now to do that alongside NITI Aayog, which is a political institution like the (previous) Planning Commission was, is essentially diluting the integrity of the CSO."
So, when the new series is in place, it has to be used as a basis for backward revision. "Consequently, the same basis which improved the growth estimate in the last two years of the UPA government somewhat downgraded it in the earlier years," he said. "Those who took after the new series in 2015 now consider the new series to be a 'hatched job' and a 'bad joke'. What humours some when data shows an upward trend depresses them if it moves in the reverse direction."