The 15th Finance Commission will be reconciling data that it gets from various sources amid serious concerns over the credibility of macro data.
Speaking to reporters, Commission Chairman N.K. Singh said, “We ourselves are going to undertake a process of economic data reconciliation among the CAG, the RBI and the data which we have received from the Ministry of Finance and other sources, so that we can make conclusions based on what we would consider reliable data in public domain.” He clarified the exercise had nothing to do with the methodology or the computation of the data.
“This has nothing to do with the methodology or the computation of the data, but we are seeking reconciliation among the multiple sources of data. This reconciliation will be within the bounds of acceptable and appropriate prudence to be able to do so,” Mr. Singh said while responding to whether the row over data credibility came up for discussion with various stakeholders during the panel’s two-day visit to Mumbai.
“We may or may not succeed, but at least we must come to a conclusion that this is what we believe is the most credible before accepting it,” he added.
He also voiced concern over GST collection as projections were not looking healthy. “Projections of indirect tax collections, especially with regard to GST, have not been as healthy,” Mr. Singh said, adding the Commission would hold another round of discussions with the revenue department based on the latest figures of the improvements in GST behaviour and what changes can be made to make it more ‘buoyant, stable and predictable.’
On the Bimal Jalan panel set up to review the economic capital framework of the RBI, Mr. Singh said the issue was not and should not have been discussed in depth by the Finance Commission and the RBI. He, however, saidthe committee was in a fairly advanced stage of deliberations and it would possibly be submitting its report well in time for the Union Budget this year.
