GDP numbers for FY24 show discrepancies of Rs 2.59L cr

New Delhi: The National Statistical Office (NSO) released its first advance estimates for India’s national accounts recently, revealing a narrowing gap between the two main methods of GDP calculation: production and expenditure. While the discrepancy stood at Rs 2.59 lakh crore for 2023-24, it was significantly higher in previous years, reaching (-) Rs 3.80 lakh crore in 2022-23 and (-) Rs 4.47 lakh crore in 2021-22.

Discrepancies in the statistical GDP data refer to the difference in national income under production method and expenditure method.

According to experts, there will always be some discrepancies in national accounts because of delay in reporting of information by various agencies including state governments. About the high level of discrepancies in the national accounts data for current fiscal, experts are of the view that discrepancies are shown to report data as accurately as possible. However, they say that the government make all efforts to reduce discrepancies.

There are three methods of computation of national income namely, production, expenditure and income. The NSO’s estimates also project a 7.3 per cent GDP growth for 2023-24, slightly higher than the 7.2 per cent achieved in 2022-23. However, the GVA (Gross Value Added), representing the actual output of the economy, is expected to grow at 6.9 per cent, slightly lower than the previous year’s 7 per cent.

The difference between GDP and GVA arises from net taxes. The computation of national accounts assumes significance in view of evidence based policy making in the country.