## _cr0496 — Executive Summary and DQAF Assessment (ROSC Data Module: India, May 13–30, 2002) ## Source details **Canonical URL:** [_cr0496 — Executive Summary and DQAF Assessment (ROSC Data Module: India, May 13–30, 2002)](https://www.imf.org/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/scr/2004/_cr0496.pdf) ## Other formats - [Markdown version](/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/scr/2004/_cr0496.pdf.md) - [Structured JSON version](/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/scr/2004/_cr0496.pdf.json) --- ### Executive summary — main findings - Scope: - Reviews India’s data dissemination practices against the IMF’s Special Data Dissemination Standard (SDDS). - In-depth DQAF assessment of national accounts, consumer price index, wholesale price index, government finance, monetary, and balance of payments statistics. - Agencies assessed: Ministry of Statistics and Programme Implementation (MOS), Ministry of Labour, Ministry of Commerce and Industry, Ministry of Finance (MOF), Reserve Bank of India (RBI), Office of the Registrar General of India. - Mission dates: May 13–30, 2002. - SDDS observance: - India is in observance of the SDDS. - Meets specifications for coverage, periodicity, and timeliness in all data categories except: - timeliness of data on general government operations (flexibility option taken), and - periodicity and timeliness for the labor market (uses “as relevant” flexibility options). - Had not developed a single National Summary Data Page containing all SDDS data categories at the time of the mission. - Prerequisites of quality: - Statistical agencies aware quality is central; mostly have institutional frameworks supporting quality. - No single government unit has authority/responsibility to compile and disseminate an integrated comprehensive statement of government finance statistics. - National accounts basic data originate from a strongly decentralized administrative system; coordination shows indications of deterioration with liberalization. - Ongoing liberalization requires modernization of the statistical system and strengthening legal foundations in line with the 2001 Report of the National Statistical Commission. - Integrity and methodological soundness: - Macroeconomic statisticians display high integrity and professionalism. - Monetary statistics broadly conform with the IMF’s Monetary and Financial Statistics Manual (MFSM). - National accounts and balance of payments largely, but not entirely, follow 1993 SNA and BPM5 respectively. - Nationally-developed concepts for government finance statistics partly related to GFSM 1986; no migration path to GFSM 2001 considered. - All official CPIs target population segments; none represents a broad general consumer price inflation measure. - Accuracy and reliability: - Macroeconomic statistics broadly accurate/reliable, but national accounts affected by: - absence of a good quality business register for larger producing units, - lack of current sources on services production and private consumption expenditure, - use of imperfect techniques for constant-price data. - CPI weights outdated; WPI source data could be strengthened by expanding respondent and product samples. - Serviceability and accessibility: - Statistics generally frequent, timely, relevant; scope to improve timeliness of general government operations data. - Users’ needs broadly met but with concerns (e.g., more information on emerging services sector). - Most macroeconomic statistics and related metadata widely available; scope to improve access to national accounts and government finance metadata and assistance. ### SDDS data-dimension and access highlights (as presented) - National accounts: periodicity Q; timeliness 1Q. - Production index: periodicity M; timeliness 6W. - Consumer price index: periodicity M; timeliness 1M. - Wholesale price index: periodicity M and W; timeliness 2W (exceeds SDDS 1M). - General government operations: periodicity A; India timeliness 9M (flexibility option; SDDS timeliness 2Q). - Central government operations: India timeliness 1M except March data released within two months after reference month. - Central government debt: Q periodicity and timeliness matched. - Analytical accounts of banking sector: periodicity M; timeliness 15D (exceeds SDDS). - Analytical accounts of central bank: periodicity W; timeliness 1W (exceeds SDDS). - Balance of payments: Q periodicity and timeliness matched. - Reserves template: periodicity M and W; timeliness 1W (exceeds SDDS). - Merchandise trade: timeliness 5W (exceeds SDDS). - International investment position: periodicity A with plan to transition to Q; current planned timeliness 36M for A. - Exchange rates: daily dissemination. - Population: intercensal population projections 12–18M. ### Monitoring and pre-release access - IMF monitoring of India’s SDDS observance began July 2000; July 2000–March 2002 India’s dissemination practices were in observance of the SDDS. - April 2001–March 2002: three instances of delays—all pertaining to central government debt dissemination. - Pre-release internal access: - No internal government access prior to public release for most categories except: analytical accounts of the banking sector, analytical accounts of the central bank, WPI, international reserves and foreign currency liquidity, and international investment position. - For WPI, press release issued to MOF and RBI prior to public release. - Data released are not accompanied by ministerial commentary. ### DQAF assessment — summary judgments (key elements and gradings) - Key to symbols: O = Practice Observed; LO = Practice Largely Observed; LNO = Practice Largely Not Observed; NO = Practice Not Observed. - Prerequisites of quality (selected): - Legal and institutional environment: National Accounts LO; CPI O; WPI LO; GFS LNO; Monetary Statistics O; BOP LO. - Resources: National Accounts O; CPI O; WPI O; GFS LO; Monetary Statistics O; BOP O. - Quality awareness: All sectors O. - Integrity: - Professionalism and Ethical standards: All sectors O. - Transparency: National Accounts O; CPI O; WPI LO; GFS LO; Monetary Statistics O; BOP O. - Methodological soundness (selected): - Concepts and definitions: National Accounts LO; CPI O; WPI LO; GFS LNO; Monetary Statistics O; BOP LO. - Scope: National Accounts LNO; CPI LNO; WPI O; GFS LO; Monetary Statistics O; BOP O. - Accuracy and reliability (selected): - Source data: National Accounts LNO; CPI LNO; WPI LNO; GFS O; Monetary Statistics O; BOP LO. - Statistical techniques: National Accounts LNO; CPI LO; WPI LO; GFS O; Monetary Statistics O; BOP O. - Revision studies: National Accounts LO; CPI O; WPI O; GFS LO; Monetary Statistics O; BOP LO. - Serviceability and Accessibility (selected): - Relevance: National Accounts O; CPI O; WPI O; GFS LO; Monetary Statistics LO; BOP LO. - Timeliness and periodicity: National Accounts O; CPI O; WPI O; GFS LO; Monetary Statistics O; BOP O. - Metadata accessibility: National Accounts LO; CPI O; WPI LO; GFS LNO; Monetary Statistics O; BOP LO. - Assistance to users: National Accounts LO; CPI O; WPI LO; GFS LO; Monetary Statistics O; BOP O. ### DQAF sector-level findings and main technical issues - National accounts: - Largely follow 1993 SNA but some 1968 SNA elements remain. - Major source gaps: lack of single reliable business register for larger producing units; insufficient current sources on private services and household final consumption expenditure; imports/exports at constant prices not published (serious gap). - Deflation techniques: single indicator methods used except agriculture and mining; double deflation rarely used contrary to 1993 SNA guidance. - Valuation: market output valued at factor cost (not basic/producer’s prices); imports valued c.i.f. (not f.o.b.). - Consumer Price Index (CPI-IW): - Indexes target specific population segments; none is broad-based general CPI. - Weights for CPI-IW derived from 1981–82 special NSSO survey; new weights from 1999–2000 Working Class Family Income and Expenditure Survey being implemented. - CPI-IW final when first published and not revised. - Wholesale Price Index (WPI): - Purpose tailored to Indian requirements; scope not aligned with producer price index concepts. - Weights based on 1993−94 (with revision to 1998−99 in progress); current price quotations less than 2,000 raising representativeness concerns. - New products not included until weight revisions; replacement of permanently unavailable products sometimes not timely. - Government Finance Statistics (GFS): - National aggregates partly related to GFSM 1986; linkages not transparent; no bridge tables to GFSM 1986 aggregates. - No migration path to GFSM 2001 considered. - Fiscal statistics for local governments and extrabudgetary funds not available. - Central government provisional monthly data commonly available after one month; audited comprehensive annual central government accounts available after ten months. - Monetary statistics: - Broad conformity with MFSM; migration incomplete. - Key gap: resident sector data lack sufficient sectoral subdivision for domestic credit distribution. - Banks add accrued interest quarterly, not continuously; RBI does not adjust for this timing. - Central bank weekly data finalized on following Wednesday and disseminated on Saturday; two-week data for other depository corporations disseminated within 15 days. - Balance of payments (BOP): - Broad conformity with BPM5 concepts though presentation deviates; direct investment excludes debt transactions; transactions largely recorded on cash basis. - Reinvested earnings data weak and several years late; no data for trade credit below 180 days; imports recorded c.i.f. and not adjusted to f.o.b. ### Accuracy, validation, and revision practices (selected) - Source data validation: - CSO, Labour Bureau, Office of the Economic Adviser, MOF, and RBI conduct routine checks, outlier detection, and cross-comparisons. - Revisions: CSO investigates revisions but reluctant to unilaterally adjust major source statistics; CSO’s revision practice can lead to larger revisions of preliminary estimates. - RBI: revision studies conducted regularly; revisions tend to be small. - WPI: preliminary weekly series finalized after eight weeks; differences investigated. - Revision policy/publishing: - National accounts: quick estimate published ten months after reference year; quarterly within three months after quarter. - Major national accounts revision schedule historically every ten years; CSO wishes to adopt a five-year cycle for base-year changes. - CPI-IW: final at first publication; weights updated irregularly—new weights based on 1999−2000 under preparation (target release by 2003). - WPI: weights updated every ten years (recommendation to update every five to ten years); new weights compilation in progress. ### Accessibility, metadata, and user assistance (selected) - Data dissemination: - Most statistics simultaneously released via press release and internet on preannounced schedules. - Some press releases do not display full revised series though full series posted on the Internet. - Metadata availability: - Summary methodology statements provided for national accounts, industrial production, CPI, and WPI on DSBB; other categories lack DSBB statements. - Methodological information sometimes inadequate to explain deviations from international conventions. - User assistance and contact points: - Contact details vary; CSO press releases do not always identify contact persons; DSBB pages provide more contact detail. - Several agencies could conduct regular comprehensive user surveys; some did ad hoc user questionnaires (56 users surveyed; 23 responses). ### User survey results (selected numeric ratings) - Questionnaire sent to 56 users; responses received: 23. - Respondent types: six researchers, six banks/businesses, five international community, four credit rating agencies, one government agency. - Average ratings (scale 1–5; 5 = “excellent”, 1 = “poor”): - monetary statistics 4.3 (5, 3.5) - balance of payments statistics 3.8 (5, 3) - prices 3.5 (5, 2) - government finance statistics 3.2 (5, 1) - national accounts 2.8 (5, 1) - Major user concerns include: need for better coverage of services, updated price weights, more detailed fiscal data (states and local governments), greater transparency on revisions, and improved accessibility of metadata and source/methods documentation. ### Staff’s recommendations — high-priority actions (overview) - General: - Modernize the Indian Statistical System in response to liberalization, strengthen legal foundations of data collection per National Statistical Commission recommendations. - Complete construction of a single, comprehensive National Data Summary Page containing all SDDS data categories. - Conduct regular comprehensive user surveys. - National Accounts (high priority): - Improve the business register for larger producing units. - Improve statistical sources on private services for annual and quarterly accounts. - Develop current statistics on private final consumption expenditure. - Publish imports and exports of goods and services at constant prices. - Provide full set of quarterly national accounts data in CSO press releases and identify contact persons. - Consumer Price Index (high priority): - Develop and publish a broad-based all-India CPI compiled to internationally accepted standards. - Update weights every five years and certainly no longer than every ten years. - Wholesale Price Index (high priority): - Update weights every five years and certainly no longer than every ten years. - Increase number of respondents and products in the sample and ensure regular updating; strengthen legal authority to collect price information. - Government Finance Statistics (high priority): - Assign one body main responsibility and authority to compile and disseminate an integrated, comprehensive set of government finance statistics while retaining existing agency datasets. - Establish a migration path to compile comprehensive integrated data in line with GFSM 2001. - Compile and report within one quarter major aggregates on quarterly provisional transactions and debt data on all state governments and consolidated central/state data. - Include in domestic fiscal reports data conforming to international GFS concepts and definitions. - Monetary statistics (high priority): - Subdivide resident sector data to provide sufficient information on sectoral distribution of domestic credit. - Adjust monetary data to reflect accrued interest evenly across months rather than at quarter-ends. - Balance of payments (high priority): - Implement legislative authority to collect statistics. - Compile/disseminate BOP according to BPM5 presentation (separate services income, capital account, financial account by functional categories). - Increase quarterly detail on services transactions and obtain reinvested earnings data more timely. - Include direct investment debt transactions in “direct investment” flows rather than “other investment.” ### Responses by authorities (selected commitments and targets) - National Statistical Commission (NSC): - NSC submitted report August 2001 with 623 recommendations; about 140 implemented; statutory Statistical Commission legislative process started. - National Summary Data Page (NSDP): - Department of Economic Affairs developed NSDP hyperlinked with IMF DSBB. - CSO planned improvements and targets (by March, 2007): - Implement major features of 1993 SNA. - Introduce latest industrial and purpose classifications. - Compile annual supply-use tables. - Introduce quarterly expenditures of GDP. - Reduce time-lag in release of expenditure aggregates. - WPI and CPI planned revisions: - WPI working groups constituted to revise base year to 1999−2000 and address quality issues; technical assistance sought from World Bank for PPI and Stage of Processing framework development. - CPI-IW compilation of revised series using 1999−2000 weights in process and likely ready for release by 2003. *Source: Executive Summary and selected sections from Report on the Observance of Standards and Codes (ROSC), Data module — mission to India (May 13–30, 2002); Detailed DQAF assessments and Authorities’ response (January 15, 2004).* ### Executive Summary ...................................................................................................... ### _cr0496 - Executive Summary ### Executive summary — main findings - This ROSC data module reviews India’s data dissemination practices against the IMF’s Special Data Dissemination Standard (SDDS) and provides an in-depth assessment of the quality of: national accounts, consumer price index, wholesale price index, and government finance, monetary, and balance of payments statistics. - Agencies assessed: Ministry of Statistics and Programme Implementation (MOS), Ministry of Labour, Ministry of Commerce and Industry, Ministry of Finance (MOF), Reserve Bank of India (RBI), Office of the Registrar General of India. - Mission dates: May 13–30, 2002. - The mission’s principal conclusions included: - SDDS observance: - India is in observance of the SDDS. - Meets specifications for coverage, periodicity, and timeliness in all data categories except: - timeliness of data on general government operations (flexibility option taken), and - periodicity and timeliness for the labor market (uses “as relevant” flexibility options). - Had not yet developed a single, comprehensive, National Summary Data Page containing all SDDS data categories at the time of the mission.1 - Prerequisites of quality: - Statistical agencies demonstrate awareness that quality is central and mostly have an institutional framework supporting quality. - No single government unit has authority and responsibility to compile and disseminate an integrated comprehensive statement of government finance statistics. - Basic national accounts data originate from a strongly decentralized administrative system; coordination between ministries, state departments, and local agencies has indications of deterioration with liberalization. - Ongoing liberalization will require substantial modernization of the statistical system and strengthening of legal foundations of data collection, in line with the 2001 Report of the National Statistical Commission.2 - Integrity: - Macroeconomic statisticians display a high degree of integrity, professionalism, and high ethical standards; agencies generally have transparent policies and practices. - Methodological soundness: - Macroeconomic statistics broadly follow international recommendations with some deviations: - Monetary statistics broadly conform with the IMF’s Monetary and Financial Statistics Manual (MFSM). - National accounts and balance of payments largely, but not entirely, follow 1993 SNA and BPM5 respectively. - Nationally-developed concepts for government finance statistics are only partially related to GFSM 1986 and many linkages are not transparent; no migration path to GFSM 2001 has been considered. - All official consumer price indexes are for specific population segments; none represents a broad measure of general consumer price inflation. - Accuracy and reliability: - Macroeconomic statistics are broadly accurate and reliable, but national accounts are adversely affected by: - absence of a good quality business register for larger producing units, - lack of current sources on services production and private consumption expenditure, - use of imperfect techniques to derive part of constant-price data. - Outdated weights cast doubt on CPI accuracy. - WPI source data could be strengthened by expanding sample of respondents and products. - Serviceability: - Statistics are generally frequent, timely, and relevant; scope to improve timeliness of general government operations data. - User survey indicates users’ needs are broadly met but with concerns and additional needs (e.g., more information on emerging services sector). - Several agencies could regularly conduct comprehensive user surveys. - Accessibility: - Most macroeconomic statistics and related metadata are widely available. - Scope to improve access to national accounts and government finance data and metadata, to improve access to WPI and balance of payments metadata, and to improve assistance to users of national accounts and government finance statistics. ### Section I — Introduction (scope and methods) - The report: - Summarizes India’s dissemination practices relative to the SDDS. - Assesses data quality using the Data Quality Assessment Framework (DQAF) developed by the IMF Statistics Department (STA). - Basis of report: information from Indian authorities and data users prior to and during the STA mission (May 13–30, 2002) and publicly available information. ### Section II — Data dissemination practices and the SDDS - Key institutional responsibilities: - MOS: national accounts, production index, CPI-UNME, labor market (uses “as relevant” flexibility). - Labour Bureau (Ministry of Labour): CPI-IW, CPI-RL, CPI-AL. - Ministry of Commerce and Industry: merchandise trade; Office of the Economic Adviser: WPI. - MOF: central government operations and central government debt. - RBI: analytical accounts of banking sector, analytical accounts of the central bank, interest rates, share price index, balance of payments, reserves template, international investment position data. - General government operations: compiled/disseminated by RBI based on MOF input; MOF is the SDDS-responsible agency for this category. - Office of the Registrar General of India: population. - Data access channels: MOS, Labour Bureau, Ministry of Commerce and Industry, Office of the Economic Adviser, MOF (multiple URLs), RBI, Office of the Registrar General of India websites (specific URLs provided in source). - Data dimension (coverage/periodicity/timeliness): - India meets SDDS specifications for data dimension for all categories, using flexibility for general government timeliness and “as relevant” flexibility for labor market. - India planned to disseminate international investment position for fiscal year ending March 31, 2002, by September 2002 as required by SDDS. - Access dimension: - India meets SDDS public access requirements. - Advance release calendars that meet SDDS are disseminated on agency websites and supplemented by quarter-ahead release dates on the DSBB. - Data are released simultaneously via agency websites. - India was the only SDDS subscriber that had not developed a single comprehensive National Summary Data Page at the time of the mission.3 - Integrity dimension: (section heading included in source; detailed content follows in full report) ### Table highlights (as presented in source) - Table 1 (overview of current practices regarding coverage, periodicity, and timeliness compared to SDDS) shows: - National accounts: SDDS periodicity Q; India periodicity Q; SDDS timeliness 1Q; India timeliness 1Q. - Production index: SDDS periodicity M; India periodicity M; SDDS timeliness 6W; India timeliness 6W. - Labor market and employment: uses “as relevant” flexibility; employment periodicity Q; unemployment periodicity A; wages/earnings periodicity every five years; timeliness examples include 1Q and 24M with "as relevant" flexibility. - Consumer price index: SDDS periodicity M; India periodicity M; SDDS timeliness 1M; India timeliness 1M. - Wholesale price index: India periodicity M and W; SDDS timeliness 1M; India timeliness 2W (periodicity and timeliness exceed SDDS requirements). - General government operations: SDDS periodicity A; India periodicity A; SDDS timeliness 2Q; India timeliness 9M (flexibility option for timeliness utilized). - Central government operations: India timeliness 1M except March data which are released within two months after reference month. - Central government debt: Q periodicity and timeliness matched. - Analytical accounts of banking sector: India periodicity M; timeliness 15D (periodicity and timeliness exceed SDDS). - Analytical accounts of central bank: India periodicity W; timeliness 1W (exceed SDDS). - Interest rates and stock market: daily dissemination exists; weekly data also disseminated. - Balance of payments: Q periodicity and timeliness matched. - Reserves template: India periodicity M and W; timeliness 1W; periodicity and timeliness exceed SDDS. - Merchandise trade: India timeliness 5W (timeliness exceeds SDDS). - International investment position: India periodicity A with plan to transition to Q and meet SDDS timeliness after transition period; current planned timeliness 36M for A. - Exchange rates: daily dissemination. - Population: intercensal population projections 12–18M. ### Section III — Summary assessment of data quality (DQAF headings) - Coverage of DQAF dimensions in the report: - Prerequisites of quality (institutional framework, coordination, legal foundations). - Integrity (professionalism, transparency). - Methodological soundness (conformance with international manuals: MFSM, 1993 SNA, BPM5, GFSM 1986, GFSM 2001 issues). - Accuracy and reliability (national accounts weaknesses: business register, services, private consumption, constant-price techniques; CPI weights outdated; WPI sample/product coverage). - Serviceability (timeliness, frequency, relevance; user needs including services sector; need for regular user surveys). - Accessibility (availability of data and metadata; need to improve access and user assistance for national accounts, government finance, WPI, balance of payments). ### Section IV — Staff’s recommendations (overview) - General recommendations (detailed recommendations appear in full report): - Modernize statistical system in response to liberalization. - Strengthen legal foundations of data collection per National Statistical Commission 2001 recommendations. - Assign clear authority/responsibility for compilation and dissemination of integrated government finance statistics. - Develop a migration path for implementing GFSM 2001 for government finance statistics. - Improve sources and methods for national accounts (business register, services sector, private consumption). - Update CPI weights and widen coverage to better represent general consumer price inflation. - Strengthen WPI source data by expanding respondent and product samples. - Improve timeliness of general government operations data. - Enhance metadata accessibility for national accounts, government finance, WPI, and balance of payments. - Conduct regular, comprehensive user surveys across agencies. - Sector-specific headings listed in source for recommendations: - National Accounts - Consumer Price Index - Wholesale Price Index - Government Finance Statistics - Monetary Statistics - Balance of Payments Statistics *Source: Executive Summary, Report on the Observance of Standards and Codes (ROSC), Data module — mission to India (May 13–30, 2002).* ### 9. The SDDS-required disclosure of information on terms and conditions that govern the ### _cr0496 - 9. The SDDS-required disclosure of information on terms and conditions that govern the ### Disclosure and internal access (paras 9–11) - The SDDS-required disclosure of information on terms and conditions that govern the collection, compilation, and dissemination of data, including the confidentiality of the data collected, is available to the public—in electronic and non-electronic formats—in English. (para 9) - Procedures on internal access to the data prior to public release are mostly disseminated on the DSBB for the data categories to which they apply. (para 10) - For all data categories except analytical accounts of the banking sector, analytical accounts of the central bank, the wholesale price index, international reserves and foreign currency liquidity, and data on international investment position, there is no internal government access to the data prior to public release. (para 10) - For the wholesale price index, the press release is issued to the MOF and the RBI prior to public release of the data. (para 10) - For the other exceptions, prior to dissemination, the data are forwarded to senior officials within the MOF. (para 10) - Data released by the Indian statistical agencies are not accompanied by ministerial commentary. (para 11) ### Quality dimension — methodology and metadata (paras 12–13) - Summary methodology statements for four data categories (national accounts, industrial production, the consumer price index, and the wholesale price index) have been provided for the DSBB. (para 12) - Statements have not been provided for any other SDDS data category. (para 12) - Methodological information disseminated by the Indian statistical agencies through regular publications and the Internet is, in some cases, less than adequate for explaining concepts, sources, and methods used, and identifying differences from internationally accepted conventions. (para 12) - Indian statistical agencies generally disseminate component details and additional data series that make possible crosschecks and checks of reasonableness for all data categories as prescribed by the SDDS. (para 13) ### Monitoring of data dissemination (para 14) - IMF staff began monitoring India’s performance under the SDDS beginning in July 2000, in accordance with the IMF Executive Board’s Third Review of the SDDS. (para 14) - Monitoring is carried out against the release dates stated in the advance release calendars and the metadata on the DSBB. (para 14) - During July 2000–March 2002, India’s dissemination practices were in observance of the SDDS; during the 12-month period April 2001–March 2002 there were only three instances of delays in disseminating data— all pertaining to the dissemination of data on central government debt. (para 14) ### Summary assessment of data quality (paras 15–16) - An assessment of six macroeconomic datasets—national accounts, consumer price index, wholesale price index, government finance, monetary, and the balance of payments statistics—was conducted using the Data Quality Assessment Framework (DQAF). (para 15) - The DQAF covers five dimensions of data quality—integrity, methodological soundness, accuracy and reliability, serviceability, and accessibility—and a set of prerequisites. (para 15) - Conclusions are presented in standardized summary tables using a four-part scale. (para 15) - In summary, India’s macroeconomic statistics are of generally good quality. (para 16) - Shortcomings were identified that may detract from the accurate and timely analysis of economic and financial developments and the formulation of appropriate policies; unless addressed, these shortcomings have the potential to become more serious as economic liberalization continues. (para 16) ### Prerequisites of quality — legal/institutional environment and resources (paras 17–21) - The Government of India (Allocation of Business Rules), 1961 stipulates that the Central Statistical Organisation (CSO) of the MOS is responsible for compiling the national accounts. (para 17) - Basic data for national accounts are collected partially by the MOS and partially by a strongly decentralized administrative system comprising ministries, state-level departments, and local agencies. (para 17) - There are indications that coordination between the various units has deteriorated over the years as the Indian economy has liberalized; the Report of the National Statistical Commission (August 2001) notes that in certain areas the system has almost collapsed. (para 17) - Staff and other resources allocated to the national accounts compilation program are adequate; managers and staff of the CSO are sensitive to data quality as evidenced by attention to guidance from the Advisory Committee on National Accounts Statistics. (para 17) - The Allocation of Business Rules assigns compilation of the CPI-IW to the Ministry of Labour; the Labour Bureau collects and compiles CPI-IW data. Respondents’ data are kept confidential and used for statistical purposes only. Adequate resources are allocated, with training and quality-monitoring measures in place. (para 18) - The Allocation of Business Rules assigns compilation of the WPI to the Ministry of Commerce and Industry’s Office of the Economic Adviser; the Office does not have legal authority to mandate price collection, making accuracy dependent on voluntary cooperation of business enterprises. Respondents’ data are kept confidential and used for statistical purposes only. Adequate resources and quality-awareness mechanisms exist. (para 19) - Significant authority for compiling and disseminating data on accounting records of central and state governments exists, but no single government unit has authority and responsibility to compile and disseminate an integrated, comprehensive statement based on international government finance statistics guidelines. (para 20) - The MOF Controller General of Accounts (CGA), MOF’s Department of Economic Affairs (DEA), and the RBI compile different fiscal data; data sharing and coordination among producing agencies are adequate, but there is no automated mechanism for transforming accounting data to statistical data. (para 20) - Monetary and balance of payments statistics are compiled by divisions in the RBI’s Department of Economic Analysis and Policy; scheduled banks have a legal obligation to report data to the RBI, while non-bank/ non-foreign-exchange balance of payments transactions are reported on a voluntary basis, leading to poor response rates in enterprise surveys. Staff, computing equipment, and coordination are adequate; respondents’ data are kept confidential and used for statistical purposes only. (para 21) ### Integrity (paras 22–26) - CSO: Professional independence is not questioned; first release of national accounts data is neither signed off nor seen by the minister before publication. Staff are hired by competitive examination and encouraged to explain data sources and techniques. Terms and conditions for CSO statistics are available to the public. Advance notice of methodological changes is provided to traditional users but may not reach relative outsiders. (para 22) - Labour Bureau (CPI-IW): Professional independence derives from the Allocation of Business Rules and the Minimum Wage Act, 1948. The Bureau can comment publicly on misinterpretations. No internal government access to the CPI-IW prior to release. Terms and conditions are laid down and major methodological changes are introduced after extensive technical discussion. (para 23) - Office of the Economic Adviser (WPI): Professional independence and integrity are ensured by the Allocation of Business Rules. Prior to public release, the WPI press release is given to the MOF and RBI under embargo; this practice is not publicly identified and not described in the IMF’s DSBB. Advance notice of major methodological changes is given in the Office’s press release. (para 24) - Government finance statistics: Statistical policies are guided by professional principles; provisional central government data are based on provisional CGA accounting records and final data are audited by the Comptroller and Auditor General of India (CAG). Laws and regulations governing reporting are public. Advance notice of major methodological changes has not generally been given, but only one significant change occurred in recent years. No code of conduct specific to statistical compilation exists, though general sanctions apply. (para 25) - Monetary and balance of payments statistics (RBI): Compiled on an impartial basis; staff conditions are set out in a code of conduct. Technical group reports foreshadowing methodology changes are posted to the RBI’s website and mentioned in the RBI Bulletin. Terms and conditions for collection, processing, and dissemination are available to the public. Internal government access to monetary statistics is provided to senior MOF officials prior to release and is identified on the IMF’s DSBB; there is no internal government access to balance of payments statistics prior to release. RBI may comment on misinterpretations. (para 26) ### Methodological soundness (paras 27–30) - National accounts: - Largely follow the 1993 SNA as a general framework, but several concepts and definitions of the 1968 SNA are still used. (para 27) - Absence of data on imports and exports of goods and services at constant prices creates a serious gap. (para 27) - Range of institutional accounts is incomplete; public sector is a major grouping but general government is not identified as such. (para 27) - National Industrial Classification 1987 (broadly based on ISIC rev 2) is used. (para 27) - Valuation rules are partially in accordance with the 1993 SNA: market output is valued at factor cost instead of at basic (or producer’s) prices; imports of goods are valued at c.i.f. rather than f.o.b. values. (para 27) - Most transactions are recorded on an accrual basis, but all government operations and nearly all external transactions are recorded on a cash basis. (para 27) - CPI-IW and other CPIs: - Reference populations are specific segments of the total population; work has been initiated on a broad-based all-India CPI. None of the existing indexes represents a broad measure of general consumer price inflation. (para 28) - Overall conceptual and definitional structure of the CPI-IW is in accordance with internationally accepted standards; prices collected are purchasers’ prices; weighting data recording is in accordance with good practice. (para 28) - WPI: - Purpose is to meet Indian requirements; concepts and definitions for weights and prices are not consistent with those for a producer price index. (para 29) - Scope is broadly in accordance with international good practice, adapted to Indian conditions; classification follows National Industry Classification of 1987. (para 29) - Government finance statistics (GFS): - National concepts are partly related to GFSM 1986, but linkages are not typically transparent; reported aggregates useful for budget purposes are often not the same as those in GFSM 1986. (para 30) - No bridge table links nationally reported aggregates to GFSM 1986 aggregates. (para 30) - No migration path has been considered for implementing GFSM 2001 methodology in nationally appropriate stages, although existing data on government financial holdings and contingent liabilities implicitly represent steps taken toward such a path. (para 30) - Fiscal statistics are not available on local governments and extrabudgetary funds. (para 30) - Sectorization and classification systems for budgetary units permit compilation of GFS for transactions and debt; basis of recording is appropriate at this stage with market prices used to value transactions and transactions recorded on a cash basis consistent with GFSM 1986. (para 30) *Source: _cr0496 - 9. The SDDS-required disclosure of information on terms and conditions that govern the collection, compilation, and dissemination of data (IMF PDF).* ### 31. Monetary statistics are compiled in broad conformity with guidelines outlined in the ### _cr0496 - 31. Monetary statistics are compiled in broad conformity with guidelines outlined in the ### Monetary statistics and balance of payments: conformity and compilation practices - Monetary statistics are compiled in broad conformity with the IMF’s Monetary and Financial Statistics Manual (MFSM) framework: residency-based sectorization, MFSM classification of financial instruments, and market-based valuation of gold, securities and foreign currency positions. - Migration to the MFSM guidelines has yet to be completed: - Resident sector data lack sufficient information on the sectoral distribution of domestic credit. - Banks add accrued interest to credit and deposit positions on a quarterly rather than continuous basis, and the RBI does not adjust the data to address the problem. (Paragraph 31) - India’s balance of payments statistics are compiled in broad conformity with BPM5 concepts and definitions, though overall presentation does not closely follow BPM5: - Scope conforms to BPM5; classification system largely in line with BPM5 but with limited sectoral detail. - Debt transactions between affiliated enterprises are not included in direct investment (contrary to international recommendations). - With the exception of reinvested earnings, transactions are recorded at market prices. - Transactions largely recorded on a cash (or settlements) basis rather than on an accrual basis. - Current account transactions largely recorded gross; financial account transactions recorded net, with assets and liabilities recorded separately. - Data are prepared in both rupees and U.S. dollars using the period average rupee-U.S. dollar exchange rate for the month. (Paragraph 32) ### Accuracy and reliability: source issues and statistical techniques - National accounts: - Sources include administrative data and CSO or NSSO sample surveys, but sampling is handicapped by the absence of a single reliable business register for larger producing units. - Annual and quarterly accounts lack sources on private services producing units; no current sources exist for household final consumption expenditure, so quarterly accounts do not encompass expenditures on GDP. - Except for agriculture and mining, single indicator methods are used to estimate value added at constant prices; the 1993 SNA recommends double deflation. - Taxes are deflated by consumer or wholesale price indexes, which is not according to accepted good practice. - Considerable reliance on fixed ratios when using the commodity flow method; allocation of harvests in time is inaccurate. - CSO assesses and validates sources and its own estimates satisfactorily and investigates direction and magnitude of revisions between preliminary and final data, but does not unilaterally adjust a major source statistic even if investigation suggests bias; agreement from the data provider is sought. (Paragraph 33) - CPI-IW: - Weights derived from a special NSSO survey in 1981–82; weights are soundly determined but too old to be representative of current consumption. - Coverage and price collection techniques are adequate; price information is timely for validation and compilation. - Internationally accepted techniques used to combine prices and weights, but newly-emerging products are excluded until weights are updated and permanently unavailable products are not always replaced. - Seasonal products handled by applying variable weights to months. - Price data are routinely assessed for errors and intermediate data compared with other indexes. - CPI-IW is final when first published and not subject to revision. Revisions of weights are thoroughly examined by the Labour Bureau and communicated to oversight bodies. (Paragraph 34) - WPI: - Weights derived from national accounts, Annual Survey of Industries, and agricultural statistics; absence of an up-to-date business register introduces statistical uncertainty. - Less than 2000 prices are collected, raising representativeness concerns. - Prices for primary products recorded from wholesale markets; manufactured product prices obtained ex-factory/ex-warehouse or from secondary/retail markets—WPI does not consistently reflect producer or wholesale market price developments. - Source price data are timely; internationally accepted techniques used to compile index, but exclusion of newly-emerging products and not replacing permanently unavailable products may adversely affect accuracy. - Differences between preliminary and final data are investigated and impact of weight revisions analyzed. (Paragraph 35) - Government finance statistics: - Annual provisional aggregates of state government finances available within three quarters; annual and quarterly source data available after one quarter. - Audited comprehensive annual central government accounts available after ten months; provisional monthly data usually available after one month. - Charts of accounts align adequately with GFS categories; source data periodically assessed; provisional accounts reconciled monthly with RBI information. - No documented studies/analyses of revisions are public, though experience indicates revisions are not significant. (Paragraph 36) - Monetary statistics: - Source data derived from RBI accounting records and scheduled commercial and cooperative banks; capture full range of financial instruments and sectors. - Data collection system allows timely compilation; internal arrangements ensure information flow between departments preparing central bank accounts and those collecting and tabulating bank returns. - RBI verifies bank reporting practices consistent with regulations; quality monitored through crosschecks. - Provisional monetary data are subsequently revised, but extent of revision is usually limited; RBI staff prepare studies on revisions, occasionally published. (Paragraph 37) - Balance of payments: - Data sources provide adequate basis to compile major BOP items and generally align with internationally recommended definitions/classifications/scope. - Reinvested earnings data are several years late and relatively weak (obtained from a voluntary survey of direct investment enterprises). - No data for trade credit extended for less than 180 days. - RBI audits authorized dealers (ADs) regularly to ensure correct classification of foreign exchange transactions. - Imports recorded on a cif basis and are not adjusted to fob basis. - Substantial differences between customs merchandise trade data and ADs data; studies have been undertaken to explain differences. - No formal analyses of revisions to assess statistical biases in preliminary data; reasons for main changes are indicated in the RBI Bulletin. (Paragraph 38) ### Serviceability: timeliness, periodicity, consistency, and user consultation - National accounts: - CSO consults users through conferences and the Advisory Committee on National Accounts Statistics. - Timeliness and periodicity meet SDDS requirements; statistics are internally consistent with long time series available. - National accounts fully consistent with balance of payments and close to government finance statistics. - Latest major revision slightly exceeded the normal 10-year schedule. Identification of preliminary estimates could be improved. (Paragraph 39) - CPI-IW: - Established consultation process with main users; meets SDDS timeliness and periodicity requirements; series internally consistent from 1966 onward. - CPI-IW final when first published; weights have not been revised regularly. (Paragraph 40) - WPI: - Consultation process exists; periodicity and timeliness exceed SDDS requirements. - Internally consistent; preliminary indexes clearly identified and adjusted according to a regular, transparent schedule. - Weight revisions normally every ten years. (Paragraph 41) - Fiscal data: - No routine user feedback sought though some feedback received; timeliness does not fully conform with SDDS. - Details of central government revenue data fall short of analytical needs. - Annual operations data of general government disseminated within three quarters (rather than standard two quarters). - Fiscal data are consistent internally and harmonized with other major datasets; revisions follow a regular procedure with provisional and final data clearly identified. - No public studies/analyses of revisions were provided to the mission. (Paragraph 42) - Monetary statistics: - RBI undertakes regular consultations between compiling and policymaking departments and has working groups to ascertain user needs, but no comprehensive user surveys. - Periodicities and timeliness of central bank and other depository corporation data exceed SDDS requirements. - Main breaks and discontinuities explained in notes/footnotes; consistency checks with government records and BOP carried out; intersectoral consistency broadly achieved. - Weekly central bank data are final; banks’ two-week data finalized and published quarterly. Revisions follow a predictable pattern communicated via RBI publications. (Paragraph 43) - Balance of payments: - Senior staff at MOF and RBI oversee BOP statistics and review data relevance; no comprehensive user surveys on quality issues. - User requests for more detailed services data met by occasional articles but not quarterly. - Statistics meet SDDS timeliness and periodicity; data used in monetary statistics and flow of funds and provided to CSO for national accounts. - Quarterly sums equal annual data; time series consistent for about ten years. - Revisions follow an established transparent schedule and are indicated. (Paragraph 44) ### Accessibility: publication practices, metadata, and user support - National accounts: - Published clearly with analysis; simultaneously released to press and Internet on a preannounced schedule. - Press releases of quarterly accounts may not show all revised data but full series are posted on the Internet. - Availability of additional information (long series on diskette, unpublished detail) is not widely publicized. - Extensive documentation published on base year changes but may be difficult to find; short metadata descriptions for the general public are lacking apart from DSBB. - Catalogues of publications with prices are in the Monthly Abstract of Statistics and on the Internet. - User assistance could improve via identification of contact persons and telephone/postal/Internet addresses. (Paragraph 45) - CPI-IW: - Presented clearly in publications and on the Labour Bureau’s home page; released on a preannounced schedule simultaneously to all users. - Unpublished but nonconfidential data provided on request. - Metadata on concepts, definitions, and methodology available; monthly press release identifies contact information and prompt user support is available. (Paragraph 46) - WPI: - Presented clearly on a preannounced schedule; press release contains provisional and final figures with commentary and revision indications. - Detailed indexes back to 1994 available on Office of the Economic Adviser homepage. - Weekly WPI released to press each Friday under embargo until Sunday; procedures announced on DSBB. - Nonpublished nonconfidential data available on request. - Broad information on scope/definitions provided in Revision of Index Numbers of Wholesale Prices In India, but technical information (weighting base concept/sources, treatment of missing prices, deviations from international standards) is insufficient; short summary methodology on DSBB. - Weekly press release does not publicize a contact for user assistance. (Paragraph 47) - Fiscal data: - Fiscal operations and debt data presented to facilitate interpretation, but advance release schedules not always current. - Availability of unpublished detailed data not publicized. - Nationally published fiscal records lack sufficient metadata for various user levels, though DEA Key to the Budget Documents is helpful. - No catalogues of MOF publications or complete listings provided; contact persons identified on official websites. (Paragraph 48) - Monetary statistics: - Disseminated through RBI’s Weekly Statistical Statement and other publications on the RBI website; long-term series in Handbook of Statistics (hardcopy and electronic). - Data accompanied by text and charts in RBI Bulletin, Report on Currency and Finance, and Annual Report. - Advance release calendar on RBI website under “Statistics”; regular notice in RBI Bulletin. - Data released simultaneously to all users on RBI’s website; list of RBI publications and prices published in RBI Bulletin. - Unpublished subaggregates are not made available externally (requests are rare); metadata on monetary statistics disseminated on RBI website. - RBI’s website indicates a contact person but not by subject area; RBI Bulletin provides a catalogue of RBI publications. (Paragraph 49) - Balance of payments: - Presented clearly on RBI website and RBI Bulletin; accompanying text and charts would improve interpretation. - Data released according to a previously published schedule updated quarterly for the following four quarters; released simultaneously to all users on RBI’s website. - No unpublished nonconfidential data available. - A 1993 concepts, sources and methods document exists (pre-BPM5) so deviations from BPM5 are not noted; no metadata document for the general reader. (Paragraph 50) *Source: https://www.imf.org/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/scr/2004/_cr0496.pdf* ### 51. Based on the results of the data quality assessment, discussions with the Indian ### _cr0496 - 51. Based on the results of the data quality assessment, discussions with the Indian ### General Recommendations - High priority - In view of the ongoing liberalization of the Indian economy, modernize the Indian Statistical System, including through strengthening the legal foundations of data collection, along the lines of the recommendations of the National Statistical Commission. - Other key recommendations - Complete the construction of a single, comprehensive National Data Summary Page containing all SDDS data categories. - Conduct regular comprehensive surveys of users to receive feedback on data quality. ### National Accounts — findings and recommendations - High priority - Improve the business register for the larger producing units. - Improve the statistical sources on the production of private services both for the annual and quarterly accounts. - Develop current statistics on private final consumption expenditure. - Publish imports and exports of goods and services at constant prices. - In the CSO press releases, provide the full set of quarterly national accounts data for which the estimates have been revised. - Identify contact persons in press releases and publications who can answer inquiries about the data. - Other key recommendations - Improve the methodology to calculate constant price estimates, among other things, by making more use of double deflation and applying the correct methodology to deflate taxes and subsidies. - With the next change of the base year, implement more fully the 1993 SNA recommendations with respect to, among other things, valuation, basis of recording, and terminology. - Permit the National Accounts Division of the CSO to adjust the results of source statistics if such is likely to improve the national accounts estimates. - CSO commentary (Response by the Authorities) - National accounts compiled following a mix of SNA 1968 and SNA 1993. - Web access to methods and contact points: http://www.mospi.nic.in/national account main.htm - Single indicator methods used for industry and service sectors; double deflation used for primary sectors. - Trade data and expenditure aggregates at constant prices published since July 2002; annual expenditure data of GDP available at constant prices. - Agricultural treatment: crop production during agriculture year (July to June) deemed to accrue during the financial year (April to March); agricultural crops account for about 16 per cent of total GDP. - Limitations noted: paucity of price data for item-wise inputs and outputs; non-availability of taxes on products at constant prices using base year tax rates and current year quantities. - Ongoing/planned improvements: - Introduce NIC 1998 classification in new series scheduled for introduction in 2005. - Present separate accounts for institutional sectors (general government, public financial corporations, public non-financial corporations) in the new series. - Include estimates at basic/producers prices and gross national income (GNI). - Actions to improve source data: Quarterly and annual enterprise survey; Introduction of business registers. - CSO targets for completion and dissemination by March, 2007: - Implementing the major features of 1993 SNA - Introducing the latest industrial and purpose classifications - Compiling the annual supply-use tables - Introducing quarterly expenditures of GDP - Reducing substantially the present time-lag in the release of data on expenditure aggregates ### Consumer Price Index (CPI) — findings and recommendations - High priority - Develop and publish a broad-based all-India CPI compiled according to internationally accepted standards. - Update the weights every five years and certainly no longer than every ten years. - Other key recommendations - Implement internationally accepted measures for inclusion of new products that emerge on the market. - Provide opportunities for the Labour Bureau staff to participate more frequently in international meetings on price index methodology and compilation practices. - CSO / Labour Bureau commentary - CPI-IW designed for industrial worker families; scope confined to population of industrial worker families rather than whole resident households as in 1993 SNA. - Summary methodology available at http://labourbureau.nic/in/ - Weights previously based on 1981-82 survey; new weights derived from Working Class Family Income and Expenditure Survey 1999-2000. - Compilation of revised CPI-IW on new weights in process and likely to be ready for release by 2003; simultaneous efforts to revise the base at an interval of 10. years. - Government in process of compiling an All-India CPI covering whole population mainly for purpose of measuring inflation. ### Wholesale Price Index (WPI) — findings and recommendations - High priority - Update the weights every five years and certainly no longer than every ten years. - Increase the number of respondents and products in the sample and undertake measures to ensure regular updating of the sample according to internationally accepted standards. - Implement internationally accepted methods for inclusion of new products that emerge on the market and for replacement of products that become permanently unavailable. - Strengthen the Office of the Economic Adviser’s legal authority to collect price information. - Other key recommendations - Undertake a feasibility study for compiling a producer price index for the services sector. - Provide opportunities for the staff of the Office of the Economic Adviser to participate more frequently in international meetings on price index methodology and compilation practices. - Develop and implement a producer price index according to internationally accepted standards. ### Government Finance Statistics — findings and recommendations - High priority - Assign one body the main responsibility and authority to compile, and disseminate nationally and internationally, an integrated, comprehensive set of government finance statistics, while maintaining existing agency responsibilities to retain benefits of existing datasets. - Establish a migration path leading, over time, toward the compilation of comprehensive and integrated data on fiscal activities and balances, as outlined by the GFSM 2001 methodology. - Expose officials who directly and indirectly contribute to the compilation of fiscal data to the benefits that other countries derive from compiling government finance statistics consistent with the GFSM 2001. - Compile and report within one quarter major aggregates on quarterly provisional transaction and debt data on all state governments and consolidated data on central and state governments. - Include, in domestic fiscal reports, data that conform to major concepts and definitions followed by international guidelines for GFS. - Other key recommendations - Identify classification and reporting requirements for local governments to help ensure the annual reporting by 2004–2005 of data on local governments and thus consolidated GFS on the wider general government. - Document and publish bridge tables linking nationally reported fiscal aggregates with aggregates of international GFS methodology. - Establish an automated system for transforming accounting data to statistical data. ### Monetary Statistics — findings and recommendations - High priority - Subdivide resident sector data to provide sufficient information on the sectoral distribution of domestic credit. - Other key recommendations - Adjust monetary data to ensure that accrued interest is reflected evenly across months rather than at the end of each quarter. ### Balance of Payments Statistics — findings and recommendations - High priority - Implement appropriate legislative authority to collect statistics. - Compile and disseminate the balance of payments according to the presentation recommended by BPM5, to clearly separate income from services, provide a separate capital account, and present the financial account with the functional categories that are internationally recommended. - Increase quarterly detail on transactions in services. - Obtain data on reinvested earnings on foreign direct investment on a more timely and comprehensive basis. - Other key recommendations - Use analysis of revisions to more fully inform statistical process. - Replace the outdated concepts, sources and methods publication with a new version and prepare a simpler document for the general user. - Include direct investment debt transactions in “direct investment” flows, rather than in “other investment” (commercial loans). ### Data Quality Assessment Framework — summary presentation (Table 2) — key elements and gradings - Prerequisites of quality - 0.1 Legal and institutional environment: National Accounts LO; Consumer Price Index O; Wholesale Price Index LO; Government Finance Statistics LNO; Monetary Statistics O; Balance of Payments Statistics LO. - 0.2 Resources: National Accounts O; CPI O; WPI O; GFS LO; Monetary Statistics O; BOP O. - 0.3 Quality awareness: All sectors O. - Integrity - 1.1 Professionalism: All sectors O. - 1.2 Transparency: National Accounts O; CPI O; WPI LO; GFS LO; Monetary Statistics O; BOP O. - 1.3 Ethical standards: All sectors O. - Methodological soundness - 2.1 Concepts and definitions: National Accounts LO; CPI O; WPI LO; GFS LNO; Monetary Statistics O; BOP LO. - 2.2 Scope: National Accounts LNO; CPI LNO; WPI O; GFS LO; Monetary Statistics O; BOP O. - 2.3 Classification/sectorization: National Accounts LO; CPI O; WPI O; GFS O; Monetary Statistics LO; BOP LO. - 2.4 Basis for recording: National Accounts LO; CPI O; WPI O; GFS O; Monetary Statistics LO; BOP O. - Accuracy and Reliability - 3.1 Source data: National Accounts LNO; CPI LNO; WPI LNO; GFS O; Monetary Statistics O; BOP LO. - 3.2 Statistical techniques: National Accounts LNO; CPI LO; WPI LO; GFS O; Monetary Statistics O; BOP O. - 3.3 Assessment and validation of source data: All sectors O. - 3.4 Assessment and validation of intermediate data and statistical outputs: All sectors O. - 3.5 Revision studies: National Accounts LO; CPI O; WPI O; GFS LO; Monetary Statistics O; BOP LO. - Serviceability - 4.1 Relevance: National Accounts O; CPI O; WPI O; GFS LO; Monetary Statistics LO; BOP LO. - 4.2 Timeliness and periodicity: National Accounts O; CPI O; WPI O; GFS LO; Monetary Statistics O; BOP O. - 4.3 Consistency: All sectors O. - 4.4 Revision policy and practice: National Accounts LO; CPI LO; WPI O; GFS LO; Monetary Statistics O; BOP O. - Accessibility - 5.1 Data accessibility: National Accounts LO; CPI O; WPI O; GFS LO; Monetary Statistics O; BOP O. - 5.2 Metadata accessibility: National Accounts LO; CPI O; WPI LO; GFS LNO; Monetary Statistics O; BOP LO. - 5.3 Assistance to users: National Accounts LO; CPI O; WPI LO; GFS LO; Monetary Statistics O; BOP O. - Key to symbols: NA = Not Applicable; O = Practice Observed; LO = Practice Largely Observed; LNO = Practice Largely Not Observed; NO = Practice Not Observed. ### Response by the Authorities — institutional progress and actions - National Statistical Commission (NSC) - NSC constituted to examine ISS comprehensively; submitted its report in August 2001. - NSC made 623 recommendations; about 140 have already been implemented; remaining are being pursued by the Ministry of Statistics and Program Implementation. - Recommendation for establishment of Statutory Statistical Commission; required legislative process has started. - National Summary Data Page (NSDP) - The Department of Economic Affairs (DEA) has developed the National Summary Data Page (NSDP) hyperlinked with the IMF Dissemination Standards Bulletin Board. http://www.finmin.nic.in/stats_data/nsdp_sdds/index.html - Implementation context - ISS evolved to capture data for a very large and decentralized economy; recent operational efficiency issues noted, particularly in industrial production following delicensing. - Improvements targeted at reliability, credibility, adequacy and timeliness of statistics through measures including construction and maintenance of a business register, improvement of services sector statistics, infrastructure sector statistics, and strengthening of Central and State Statistical Systems. ### Statistical techniques — clarification by the authorities - The ROSC grading LNO for Element No.3.2 (statistical techniques) is viewed as reflecting limited compliance with a few SNA procedures rather than absence of statistical techniques. - Authorities argue that the term “statistical techniques” is broader and that “SNA procedures” would better describe the areas where full adherence is constrained by data paucity. *Response by the Authorities of India, Report on the Observance of Standards and Codes (ROSC) — Data Module, January 15, 2004* ### 9. Wholesale Price Index: ### 9. Wholesale Price Index: ### Overview - The Office of Economic Advisor (EA) in the Ministry of Commerce and Industry produces a widely used weekly wholesale price index (WPI), accessible from the website at http://eaindustry.nic.in/. - Internationally accepted statistical techniques are largely observed within the constraints of source, time and user needs. - A Manual on the wholesale price indices has already been prepared with information on methodological issues and "will be soon available on the website." ### Planned improvements and scope expansion - Measures being considered to strengthen the WPI include: - enlarge coverage of the commodities; - improve the techniques; - expand the scope; - shift the base year and revise the weights; - raise institutional capacity. - Whole sale price data collection work has already been outsourced; the data so collected would be used for the revised WPI series. ### Institutional arrangements and technical work - A Technical Advisory Committee has been constituted to ensure uniformity in collection of price data as per the recommendations of the NSC; its proposals are under consideration. - A Working Group has been constituted for: - revision of base year to 1999-2000; - addressing quality issues of WPI. - Technical assistance is being sought from the World Bank to cover: - (i) switch over from the wholesale price based indices to producer price based indices; - (ii) development of Stage of Processing framework; and - (iii) development of services sector price indices. *Source: INDIA—Detailed Assessments Using the Data Quality Assessment Framework (DQAF). Prepared by the Statistics Department; Approved by Carol S. Carson and David Burton; March 29, 2004.* ### 0.1 Legal and institutional environment ### _cr0496 - 0.1 Legal and institutional environment ### Responsibility and mandates - The Central Statistical Organisation (CSO) compiles and disseminates national accounts estimates pursuant to the Government of India (Allocation of Business Rules), 1961 and subsequent amendments. - The Allocation of Business Rules define a Ministry of Statistics and Programme Implementation with tasks that include: - Coordination of statistical work to identify gaps or duplication; - Laying down and maintenance of norms and standards in statistics (concepts and definitions, methodology of data collection, processing, dissemination); - Preparation of national and regional accounts; - Functioning as the Cadre Controlling Authority for the Indian Statistical Service (training, career planning, manpower planning). - In practice, the CSO compiles all-India national accounts itself and provides technical advice to regional authorities; practical construction of regional accounts is left to the 28 States and 7 Union Territories. ### Data sharing and coordination - Data flow to the National Accounts Division comes via two channels: - Central collection by CSO or NSSO (both part of the Statistics Wing of the Ministry); CSO conducts the Annual Survey of Industries, Economic Censuses, and the index of industrial production; NSSO conducts all-India household and enterprise sample surveys and undertakes the fieldwork for the Annual Survey of Industries. - Administrative statistical system: primary data collected by state departmental statistical units, district offices, or village officials; apex coordinating level in states is formed by Directorates of Economics and Statistics. - The CSO does not receive state-level statistics directly from State Departments and only partially from Directorates of Economics and Statistics; the main flow is often from State Departments to central ministries, which then share information with CSO by goodwill rather than formal obligation. - Observations and concerns: - Data sharing and coordination have deteriorated over the years and rely in part on goodwill, producing some statistical information that does not meet intended quality standards. - The decentralization of the administrative system makes CSO vulnerable because, without a formal statistics law, CSO lacks direct control over methodology and collection conditions for a considerable portion of basic statistics. - The August 2001 Report of the National Statistical Commission (NSC) noted that the administrative statistical system, in certain areas, "has almost collapsed." - A World Bank project report similarly notes minimal coordination and interlinkages among subsystems. - The position of director general of the CSO had been left vacant for more than four and a half years (as noted in the text). ### Confidentiality and data access - Legal and operational protections: - The Collection of Statistics Act, 1953 stipulates: - No individual information without previous consent of the owner may be published in such a manner as would enable any particulars to be identified; - No person not engaged in the collection of statistics under the Act shall be permitted to see any individual information; - If any person engaged in connection with the collection of statistics under the Act willfully discloses any information he shall be punished with imprisonment or a fine, or both. - The Collection of Statistics Act, 1953 serves exclusively the Annual Survey of Industries and does not protect individual data from small scale producing units and households. - CSO practices: - Respondents are informed of obligations to respond to obligatory surveys and confidentiality (example: NSSO letter before Annual Survey of Industries). - Publications adhere to rules ensuring published figures refer to a sufficient number of units to prevent identification. - Validated individual data on households and unregistered enterprises are made available to researchers three years after collection and after removal of identifying characteristics. - Filled-in questionnaires are burnt on the premises four years after receipt. - Physical and electronic security: computers password-protected, doors locked by keys, permanent security present, electronic-card access outside office hours. ### Statistical reporting mandates and incentives - Official statistics for households and unregistered enterprises are based on voluntary response. - Several administrative-based surveys suffer from low response rates; consideration may be given to introducing more legal incentives to respond to core questionnaires. - NSC recommends strengthening legal foundations of data collection while taking into account privacy rights. - Nonresponse to the Annual Survey of Industries is punishable under the Collection of Statistics Act, 1953; fines are: - about US$10 in first instance; - thereafter US$4 for each day of noncompliance. - Prosecution for nonresponse is very rare. - NSSO outreach to respondents emphasizes the importance of statistics for policy formulation, announces workshops, and provides contact points for results. ### Resources and efficiency - Staffing and training: - National Accounts Division: about 40 staff at officer level and 40 supporting staff. - All officers have university degrees in statistics; some hold doctorates. - New staff receive two years of training; refresher courses available; Statistics Wing has its own Training Division; outside training may also be granted. - Staff rotation: many staff rotate after about five years on unilateral management decision; people entering Indian Civil Service tend to remain for full working lives. - Financial and computing resources: - Modern computer technology and up-to-date software are available. - Overall financial resources are adequate. - Forward plans allocating budgetary resources to future statistical development are temporarily stalled pending decisions on NSC proposals and a major World Bank modernization project. - Efficiency measures: - Operational and financial targets are set for major data collection projects; planning seeks to ensure efficient use of field staff time. - Staff Inspection Unit of the Ministry of Finance monitors efficient use of personnel resources; targets assigned to individual officers and other staff with progress monitoring. - Recommendation: CSO would benefit from maintaining a set of efficiency indicators. ### Quality awareness and quality management - Quality focus: - Managers and staff are sensitive to data quality dimensions and proud of membership in the Indian Statistical Service. - Formal methods like Total Quality Management or ISO 9000 are not in place; CSO has not adopted a mission statement. - NSC report contains proposals on quality auditing and a mission statement for the Indian Statistical System. - Quality monitoring processes: - Quality is monitored from field collection (inspections, cross-checking) through compilation and dissemination. - Guidance provided by National Advisory Board on Statistics and the Advisory Committee on National Accounts Statistics (the latter convenes normally about twice a year, more often when major methodology changes are introduced). - NSSO receives directions from the Governing Council; state-level coordination committees exist with CSO and/or NSSO representation. - Periodic user surveys are not undertaken; the national accounts annual publication foreword welcomes user suggestions for coverage or presentation improvements. - Quality trade-offs and planning: - Processes exist to manage quality trade-offs (example: decision to release advance estimates of national accounts despite revision risk). - Main users (MOF and RBI) understand quality tradeoffs; not all users do. - NSC report serves as an example of external advice on improving statistical quality. ### Integrity and professionalism - Professional independence and impartiality: - No formal professional independence of CSO from the Ministry of Statistics and Programme Implementation, but by tradition there is no interference by the ministry or other agencies. - The first release of national accounts data is not signed off by the minister nor seen by the minister before publication. - Staff hiring based on competence: master’s degree required for officers and passing a competitive exam by the Union Public Service Commission. - Source and technique choices: - Choices of sources and statistical techniques are generally based solely on statistical considerations. - Staff are encouraged to explain methodology choices in CSO publications, conferences, seminars, and articles. - Concern: CSO tends not to publish data that deviate from main source agencies (e.g., Ministry of Agriculture); CSO prefers bilateral resolution of source discrepancies rather than releasing differing estimates. - Commenting on misuse: - CSO is not in the habit of publicly commenting on erroneous interpretation or requesting rectifications; reasons given: - Democratic freedom of expression; - Scientific mistakes usually handled by academic community; - Practical impracticality given the country's size. - CSO scans major press daily for related articles and may invite reporters for technical explanations. - CSO has not recently given a press conference with national accounts release. ### Transparency - Terms and conditions: - Formal terms and conditions are laid down in the Allocation of Business Rules, the Collection of Statistics Act, 1953, the Central Civil Services (Conduct) Rules, 1964, and other administrative laws, which are freely available to the public. - Further explanations can be found in the Annual Report and on the ministry and IMF DSBB websites. - Pre-release access: - Internal government access prior to release is not given; press release, internet posting, and notification to main user agencies (Office of the Prime Minister, Minister of Statistics and Programme Implementation, MOF) occur at exactly the same time. - IMF’s DSBB informs the public that prior government access does not exist. - Attribution and advance notice: - Statistics for which CSO is responsible are clearly identified as such; CSO does not request attribution when its data appear elsewhere. - Advance notice of major methodology, source data, and technique changes is provided through advisory committees, working groups, standing committees, seminars, and conferences; basic documents and conclusions are published by the Advisory Committee on National Accounts Statistics. - Possible gap: relative outsiders may not receive advance notice as changes are not normally indicated in standard publications. ### Ethical standards - Staff behavior rules and guidance: - CSO staff are bound by the Central Civil Services (Conduct) Rules, 1964, including provisions on unauthorized communication of information. - Additional legal frameworks: Official Secrets Act 1932 and the Prevention of Corruption Act 1988. - Staff take an oath at installation promising allegiance to the Constitution and to act according to the Official Secrets Act. - Staff receive instruction on ethical matters and practical communication; about three or four times a year staff renew oaths on different aspects of expected ethical behavior (nonviolence, national integrity, etc.). *Source: _cr0496 - 0.1 Legal and institutional environment (PDF).* ### 2. Methodological Soundness ### 2. Methodological Soundness ### 2.1 Concepts and definitions - The System of National Accounts 1993 (1993 SNA) is largely followed as a general framework for compiling national accounts statistics, although several elements of the 1968 SNA are still present. - The CSO is working toward further incorporation of the 1993 SNA recommendations. - Residence is defined in accordance with the 1993 SNA and the fifth edition of the IMF’s Balance of Payments Manual, explicitly including: - territorial enclaves such as Indian embassies in the rest of the world, - bonded warehouses and free trade zone activities, and - workers who work only part of the year in another country. - Practical difficulty: distinguishing workers temporarily away from India (treated as residents) from those abroad more than one year (economically nonresidents). ### 2.2 Scope - Scope is broadly consistent with internationally accepted standards, guidelines, or good practices, but the Indian national accounts do not cover all tables/accounts the Intersecretariat Working Group on National Accounts (ISWGNA) defines as a minimum requirement for implementation of the 1993 SNA. - ISWGNA minimum set includes: - annual value added and gross domestic product (GDP) at current and constant prices by activity, - annual expenditures of GDP at current and constant prices, - annual value added components at current prices by activity, - sequence of accounts for the total economy (up to financial accounts) with an annual frequency, and - annual rest of world accounts (until net lending). - Identified shortfall: - India fails to meet the minimum requirements because annual expenditures of GDP at constant prices are not published; specifically, imports and exports of goods and services at constant prices are lacking. Authorities indicated they would be able to produce these data in the immediate future. - ISWGNA-recommended regular publications include: - quarterly value added and GDP at current and constant prices by activity, - quarterly expenditures of GDP at current and constant prices, - annual supply and use tables. - Current CSO practices: - Compiles quarterly value added and GDP at current and constant prices by activity. - Input-output tables (consistent with the accounts) are compiled every fifth year. - Production boundary: close to 1993 SNA recommendations; included items: - all goods for own final consumption (in practice only estimates for agricultural, forestry, and fishing goods), - output of goods for own-account fixed capital formation, - mineral exploration, - production of entertainment, literary or artistic originals (in principle, but not yet in practice). - Not included (in variance with 1993 SNA): - production of computer software on own account, - estimates of illegal output sold to willing buyers (with a few exceptions). - Asset boundary: some 1993 SNA recommendations not yet included. - Tangible assets that should be included: - defense related assets that could be used for civilian purposes (in India limited to dwellings for military staff), - valuables (recognized only when purchased by enterprises in India), - historical monuments (not taken into account in India; considered not material). - Intangible assets that should be included: - mineral exploration (included in India), - systems and standard applications computer software and databases (purchased or built in-house) — in India recorded only when purchased, - entertainment, literary or artistic originals — in principle included, but not yet in practice in India, - patented entities (included in India), - leases and other transferable contracts (in principle included in India). - Deviations from the 1993 SNA are kept under review and may lead to future revisions. ### 2.3 Classification/sectorization - The 1993 SNA is in principle followed to classify institutional units, but for most institutional sectors no accounts are yet worked out. - Publications treat the public sector as a major grouping; supplementary information allows identification of the general government sector but not the various levels of government (central, state, local) or social security institutions. - Nonprofit institutions serving households cannot be distinguished from the household sector. - Classifications in use: - National Industrial Classification, 1987 to classify principal economic activity (broadly based on the International Standard Classification of all Economic Activities (ISIC) rev. 2). - Basic statistics already use the 1998 version of the National Industrial Classification, consistent with ISIC rev. 3 to the four-digit level. - National product classification is the Common Product Nomenclature 1988, compatible with the National Industrial Classification, 1987 at the three-digit level. - Functional classifications for final consumption expenditures of households and government follow those recommended in the 1968 SNA. ### 2.4 Basis for recording - 2.4.1 Market prices are used to value flows and stocks: - Valuation rules partially in accordance with the 1993 SNA. - Market output is valued at factor cost instead of at basic (or producer’s) prices. - Output for own use is valued at equivalent market prices. - Valuation of intermediate consumption is at purchasers’ values (including sales tax, excise taxes, and nondeductible modified value added taxes). - Deductible part of modified value added taxes is excluded from valuation of final uses. - GDP is normally presented at factor costs (a concept not used in 1993 SNA). - Corrections are made when transfer prices are detected (not common in practice). - Information on insurance and freight for merchandise imports is available but not published. - Imports of goods are recorded at cost, insurance, and freight (c.i.f.); exports at free on board (f.o.b.) values. The 1993 SNA recommends f.o.b. valuation in both cases. - Transactions in foreign currency converted using the mid-point exchange rate prevailing in the market at the moment the transactions take place. - 2.4.2 Recording is done on an accrual basis: - Most transactions are recorded on an accrual basis. - All government operations and nearly all transactions with the rest of the world are recorded on a cash basis. - Deviations from accrual also exist in agriculture (see section 3.2.1). - 2.4.3 Grossing/netting procedures: - Transactions between establishments within the same enterprise are recorded on a gross basis. ### 3. Accuracy and Reliability — 3.1 Source data - 3.1.1 Source data collection and coverage issues: - Major deficiency: absence of a single, reliable, broad-based business register of larger producing units. - Most important list: list of manufacturing production units with the States’ Chief Inspectors of Factory — includes establishments with ten or more workers on any day in the preceding 12 months (establishments with 20 or more workers if manufacturing without power). The NSC report states the list is grossly incomplete and includes units not operating for some time. - Department of Company Affairs maintains a directory of joint stock companies (480,000 firms listed); list quality is poor and fewer than half file required annual balance sheets and accounts (non-filing firms mostly small units). - Price sources: wholesale price index and consumer price indexes for agricultural laborers, industrial workers, and urban nonmanual employees. - Lack of sufficient basic data for private business and personal services in the production approach. - Sample surveys generally use scientific random sampling, proper imputation for nonresponse, and scientifically determined grossing-up factors, but sampling frames may be of suspect quality due to inadequate registers; area sampling used for nonregistered establishments. - Quality concerns: administrative statistics (e.g., crop area statistics) publicly questioned; overburdened local agencies affect land use monitoring. - Table 1 summary (Main Sources for the Annual National Accounts) — assessments preserved as in source: - Production approach — coverage assessments by activity: - Agriculture: Good - Forestry: Satisfactory - Fishing: Good - Mining and quarrying: Good - Manufacturing: Satisfactory (good for registered, poor for unregistered establishments) - Electricity, gas and water supply: Good - Construction: Satisfactory (given that indirect measures are used) - Trade, hotels and restaurants: Poor - Transport, storage and communication: Poor (Good for railways and communication) - Financial intermediation: Good - Real estate, renting, and business activities: Poor - Public administration and defense; compulsory social security: Good - Education/Health and social work: Good for public agencies; Poor for private producers - Other community, social, and personal service activities: Poor - Net taxes less subsidies on products: Good - Expenditure approach — coverage assessments: - Final consumption expenditure of households and nonprofit institutions serving households: Poor - Government final consumption expenditure: Good - Acquisitions less disposals of tangible fixed assets: Poor - Acquisitions less disposals of intangible fixed assets: Satisfactory - Additions to the value of non-produced non-financial assets: Good - Changes in inventories: Satisfactory - Exports and imports of goods: Good - Exports and imports of services: Good - Household consumption expenditure surveys: - Conducted every five years with sufficient sample size, but collect information for only part of a year rather than a full year; national accounts estimates use detailed commodity flow analysis. - Government data: - Comprehensive government budgetary data available; central government data include extra-budgetary funds such as the Providence Fund. - All defense related expenditures included in total public sector expenditures. - Estimates on capital stock owned by government are made. - Benchmark data: - Benchmark data for annual accounts available on a quinquennial basis; Economic Census in principle every ten years supplemented by a halfway update. - Quarterly accounts: - Indicators on production mostly sufficient to make quarterly estimates consistent with annual accounts; too few indicators to establish expenditure components of quarterly GDP. - Need for development of new short-term statistics for private services. - Ad-hoc surveys: - Conducted when necessary (examples: time use survey for workforce, surveys on portion of farm output sold, surveys to update ratios such as value added per worker). - 3.1.2 Source data compatibility: - Source data generally consistent with national accounts definitions, scope, classifications, and time of recording, with notable exception of some agricultural data available on the agricultural year rather than the fiscal year (additional information used to allocate in time). - 3.1.3 Timeliness of source data: - Some source data have long lags: audited public enterprise data available two years after reference year; budget data take about two years to be finalized. - Overall acceptable: all price indexes timely except export and import unit values (one-year lag); international trade statistics available within one month; balance of payments statistics available in time for national accounts “quick estimate.” - If source data are late, CSO follows up by telephone and, if necessary, involves higher-level staff. *Source: _cr0496 - 2. Methodological Soundness* ### 3.2 Statistical techniques ### 3.2 Statistical techniques ### Production approach — compilation and valuation - Annual output and intermediate consumption estimates are compiled for about 500 activities/products, mostly at the three-digit level of the activity classification and a few at the four-digit level (publication level is much more aggregate). - Quarterly output estimates are at the two-digit level of the activity classification; the technical coefficients with respect to goods and services entering the production process are all fixed. - Reliance on fixed ratios that are more than five years old when estimating annual GDP at current prices from the production side is considerable but not yet excessive. The biggest categories using outdated fixed ratios are trade, real estate, construction, and private transportation. The unregistered manufacturing sector formerly also belonged to this list, but following the introduction of the Follow-up Surveys a regular refreshment of the ratios has taken place. - Treatment of owner-occupied dwellings: output valued as estimated rentals tenants would pay for similar accommodation; computation is very imprecise because only two types of dwellings and two types of location are distinguished. - Work in progress: - Recorded for part of standing timber, large construction projects, and output of large equipment such as ships. - Not applied to growing crops, stocks of fish, or livestock reared for the purposes of food. - Crop output is recorded at the moment of harvest, and crops follow the agriculture year July to June, without modification to the financial year April to March; the result is crop output according to the agriculture year is shifted back in time by three months. - Prices used to value agricultural crops are taken from the moment the bulk of the harvest appears on the market, about one month after the actual harvest. - Costs incurred during the growing period are initially capitalized and only recorded as intermediate consumption at the moment the harvest takes place. - Inventories: - CSO revalues data on inventories received from enterprises to compute changes in inventories as the difference between opening and closing stocks at average prices of the period. Revaluation is done only partially because businesses report inventories at “cost” or at “net realizable value,” whichever is less; CSO does not have direct information on opening and closing stocks at current market prices and does not attempt to convert commercial valuation to current market valuation. - Consumption of fixed capital: CSO uses the perpetual inventory method as recommended by the 1993 SNA. - Government cash-basis recording: No effort is undertaken to convert government receipts and expenditures recorded on a cash basis in the basic statistics to a transaction basis. ### Production approach — volume measures and deflation - Deflators are as specific as possible in price concept, coverage, and reference period; some mismatches exist: - Import duties and excises deflated by the wholesale price index. - Sales tax deflated by the average of the consumer price index for industrial workers and the wholesale price index. - Government value added deflated by the consumer price index for industrial workers. - Except for agriculture and mining, single indicator methods are used to estimate value added at constant prices. The 1993 SNA recommends double deflation, but CSO notes double deflation may produce unacceptable results (e.g., negative contributions to GDP at constant prices) for industries with small margins; CSO is examining future use of double deflation. - Trade output volume estimated by applying base year margin rates to corresponding volume of sales. - No chain indexes are used to measure the volume change of GDP; base year is in principle only changed every ten years. ### Expenditure approach — compilation and valuation - Important expenditure categories (private final consumption expenditure and gross fixed capital formation) are derived using the commodity flow approach rather than independent sources. - Breakdown detail: - Private and government final consumption expenditure by function are broken down into two-digit categories. - Gross fixed capital formation published by type of asset, type of acquiring institution, and industry of use. - Changes in inventories published by type of acquiring institution but not by type of good (breakdown by type of good only made on occasion of input-output table construction). - Reliance on fixed ratios is significant in expenditure categories that depend on the commodity flow method. - Specific treatments: - Government final consumption expenditure is exclusive of final sales. - Expenses of residents abroad are included in imports and in private final consumption expenditure; expenses of nonresidents in the economy are included in exports. - Expenditures on stores of wealth (jewelry, antiques, works of art) are included in valuables only insofar as purchases by enterprises; similar household expenditures are included in final consumption expenditure. ### Expenditure approach — volume measures and deflation - Private final consumption expenditure at constant prices: - Calculated according to type of product. - For many food items, quantities are multiplied by base year prices. - Where only value data exist and in absence of a broad-based consumer price index, deflation uses appropriate subindex of the wholesale price index. - Services items use the same deflator as the value added deflator of the service-producing industry. - Government final consumption expenditure at constant prices: - Compensation of employees deflated with the consumer price index for industrial workers. - Net purchases of goods and services deflated by the wholesale price index. - Gross fixed capital formation at constant prices: - Specific deflators for capital formation in construction. - Machinery other than electrical, electrical machinery, and transportation equipment produced by resident enterprises deflated by relevant components of the wholesale price index. - Other equipment deflated by the wholesale price index for machinery and transport equipment. - Livestock treated as fixed-capital assets available in quantities evaluated at base year prices. - Imported goods in gross fixed capital formation deflated by import unit values for respective groups. - Changes in inventories: Mostly no breakdown by type of product exists, making proper deflation of changes in inventories impossible. - Imports and exports of goods and services are not published at constant prices. ### Quarterly compilation techniques - Benchmarking: To align quarterly estimates with annual account values, the difference between the sum of the four quarterly values and the annual value is allocated to the quarters in proportion to originally estimated quarterly values; taken alone this causes a “step” problem (abrupt change between last quarter of a year and first quarter of the next), but CSO indicates use of a procedure that would automatically avoid the step problem. - Seasonal adjustment: Quarterly estimates are not published in seasonally adjusted format; CSO considers time series too short for reliable seasonal adjustment and believes users prefer to deseasonalize themselves. Quarterly growth rates are shown compared with the corresponding quarter in the previous year to avoid misinterpretation from seasonal influences. - Quarterly accounts use the Indian Crop Calendar to allocate crop output to quarters, but quarterly accounts retain the four-quarter totals as recorded in the annual accounts, which reduces subannual analytical usefulness. ### Techniques for nonregistered sector estimation - Follow-up Surveys after Economic Censuses: - Geographical sampling areas selected; listing of establishments in selected areas. - Nonregistered establishments active in selected manufacturing kinds requested to provide information updating the most recent Enterprise Survey. - Methodology provides relatively fresh data on the nonregistered sector, conditional on the assumption that overall activities of the sector do not move geographically. ### Assessment and validation of source data (3.3) - Sampling error information is available for many surveys, but not for some key sources (e.g., Annual Survey of (registered) Industries and Follow-up Surveys for nonregistered manufacturing establishments — no sampling errors published). - Imputation techniques for non-response are well known; Ministry of Statistics and Programme Implementation holds regular meetings with States to reduce non-response. - All data received by CSO are routinely checked for outliers and improbable results; outliers found are discussed with data providers. - Surveys and censuses are routinely audited via post-enumeration checks and other verification measures. - Source data are analyzed for temporal consistency and consistency with related data sources; CSO may pressure to adjust sample selection when errors become large, or may decide not to use a minor problematic source. Consistency checks on definitions, valuation, reference periods and classifications are always conducted. ### Validation of intermediate data and outputs (3.4) - Main intermediate data are validated against other primary/secondary sources where applicable. - Systematic procedures exist to routinely assess discrepancies in intermediate data, e.g., by comparison with employment or household survey data. - No supply and use framework is currently used to investigate discrepancies; investigations are made by analyzing commodity flows at a detailed level. - Remaining discrepancies between GDP by productive activities and GDP by expenditure components are shown explicitly. - CSO validates its estimates against others (forecasts, business expectations, industrial associations), but such validation does not lead to changing CSO’s original estimates. ### Revision studies (3.5) - National Accounts Division investigates direction and magnitude of revisions between preliminary and final data. - CSO is reluctant to unilaterally adjust a major source statistic even when investigation suggests bias; preferred response is publication or seminar discussion rather than unilateral correction. This stance can lead to larger revisions on preliminary estimates. ### Serviceability — relevance, timeliness, periodicity, consistency (4.x) - User engagement: CSO consults users via annual conference of the Indian Association for Research in National Income and Wealth, a users conference attended by Ministries, the States, and academia; Advisory Committee on National Accounts Statistics includes user members; written comments invited in Foreword to annual publication. - International engagement: CSO staff regularly participate in international statistical meetings and seminars organized by international and regional organizations. - Timeliness: - Quarterly accounts published within three months after the end of the reference quarter (in accordance with SDDS). - Quick estimates of annual accounts published ten months after the reference year. - Periodicity: National accounts estimates disseminated with quarterly periodicity as prescribed under the SDDS. - Internal consistency: - Annual accounts are internally consistent with an explicit statistical discrepancy bridging GDP by production and GDP by expenditure. - Discrepancy has been small: on average about 2 percent of GDP during the last seven years, with a minimum value of 0.0 percent and a maximum of 3.9 percent for the individual years. - Estimates at current prices are consistent with matching series at constant prices and the deflators. - Quarterly GDP estimates add up to the annual estimates. - Time series and revisions: - Very long time series of about 50 years are available. - Latest major revision (adoption of base year 1993−94) has been worked back to 1981−82 and earlier years' revised values obtained by splicing. - Cross-framework consistency: - National accounts statistics are fully consistent with the balance of payments. - They are thought to be close to the government finance statistics. *Source: _cr0496 - 3.2 Statistical techniques* ### 4.4 Revision policy and practice ### 4.4 Revision policy and practice ### Revisions schedule and practice - Major revisions of the national accounts historically followed a cycle of ten years tied to the Population Census. - The most recent base-year change referred to 1993−94 instead of 1990−91. - The CSO wishes to adopt a five-year cycle for changing the base year in the future. - Sufficient explanation of changes introduced with base year 1993−94 was provided in a brochure published by the CSO; however, a very detailed discussion of sources and methods (as done for base year 1980−1981) was not published. - To avoid breaks in time series, major new source data are incorporated only on occasion of the change of the base year; new information of minor importance is used when it becomes available. - For the financial year ending March, the CSO releases a quick estimate of the annual accounts with a time lag of about ten months. - Quick estimates are normally twice revised with an annual periodicity; the revision schedule takes into account timing for preparing the budget and publications by the RBI. - Quarterly accounts estimates may be revised during the current year as necessary to ensure consistency with the annual accounts. ### Identification and communication of preliminary data - Publications suggest preliminary estimates are subject to revision but this could be expressed more explicitly. - Usually, tables do not carry warnings that the data are still subject to revision. - A positive exception is the Press Note of January 2002 which clearly indicates in the tables which data concern provisional estimates. ### Studies and analyses of revisions - Major issues causing revisions are explained in a several-page annex to the hardcopy publication entitled Notes on Methodology and Revisions in the Estimates. - The next issue of the national accounts publication will introduce a table showing both revised figures and previous estimates, accompanied by explanations of causes of revision, to allow users to better assess reliability of preliminary data. --- ### 5. Accessibility ### Presentation and comparability - National accounts data are published clearly and accompanied by analysis of recent developments. - Several tables contain ratios such as shares in GDP or income per capita; charts facilitate interpretation. - Data sets are published with various levels of detail. - Press releases on quarterly accounts do not show all quarters for which estimates have been revised; these longer time series are available on the Internet but it is advisable that press releases also present longer time series. - Quarterly national accounts series are not published in seasonally adjusted form; publications contain growth rates in comparison with the corresponding quarter of the previous year. ### Dissemination media and formats - National accounts data are simultaneously released via a press release and on the Internet. - At first release, all detailed information is available with minor exceptions of certain breakdowns that may take another two weeks to finalize. - Series are also published in National Accounts Statistics, the annual Statistical Abstract, the Monthly Abstract of Statistics, and the Statistical Pocketbook; the MOF includes national accounts statistics in its Economic Survey. - Longer time series than appear in publications are made available by the CSO on diskette and CD-ROM. ### Release schedule and equal access - The first release of national accounts data is on a preannounced day, but not at a pre-announced hour. - There is no predetermined day for release of hard copy publications. - Statistics are made available to all users strictly at the same time; the press is not briefed in advance. ### Availability of nonpublished subaggregates - Unpublished but nonconfidential data such as certain breakdowns by states can be obtained for free. - Availability of additional information is not widely publicized by the CSO. --- ### 5.2 Metadata accessibility and user assistance ### Documentation and methodologies - Extensive documentation on concepts and methods is published on occasion of base-year changes, but these publications may be difficult to find after a number of years. - Other metadata are rather scarce; information about response rates to main surveys is not given. - Some routine information on sources is provided, for example the difference between the RBI and the DDGCIS statistics on imports and exports of merchandise. - The SDDS summary methodologies are reviewed every quarter. ### Levels of detail for audiences - No short introductions (for example brochures) exist to inform general users about the national accounts. - Comprehensive sources and methods publications are produced on occasion of the change of the base year. - Detailed methodological papers discussed in meetings of the Advisory Committee on National Accounts Statistics are published. ### Contact and catalogues - Publications clearly mention the CSO as responsible for national accounts and the annual publication provides an extensive list of officers in the National Accounts Division, but do not provide specifics such as telephone numbers, postal/facsimile/e-mail addresses, or the right contact person for particular types of questions. - The pages for India on the Dissemination Standard Bulletin Board are an exception with more contact detail. - Catalogues of publications including price information are widely available, for example in the Monthly Abstract of Statistics and on the website. - The Guide to Official Statistics provides an excellent overview of statistics compiled by the Ministry of Statistics and Programme Implementation but is produced at irregular times. --- ### Price Statistics (Consumer Price Index) — overview and prerequisites ### CPI overview and usage - At present, three all-India consumer price indexes (CPIs) are compiled: the CPI for industrial workers (CPI-IW), the CPI for urban non-manual employees (CPI-UNME), and the CPI for rural labourers (CPI-RL). - Each CPI is designed for compensation purposes for its target population segment; coverage of each CPI is confined to that segment and forms only a fraction of the total population. - In practice, the wholesale price index (WPI) is the most widely used measure of inflation in India. - Of the three CPIs, the CPI-IW is the most commonly used as a measure of consumer price inflation; the report deals only with CPI-IW. ### Key characteristics (as summarized in text) - Weight reference periods: CPI-IW: 1981-82; CPI-UNME: 1982-83; CPI-RL: 1983. - Periodicity: Monthly for all three indexes. - Coverage of sample of prices (as presented): CPI-IW: 76 centers (note: although prices are collected in 76 centers, only prices from 70 centers are used in compilation of the all-India CPI-IW; the 70 centers are spread over 21 states or union territories; with the additional 6 centers the coverage increases to 24 states or union territories); CPI-UNME: 59 centers; CPI-RL: 600 villages. - States/union territories covered: CPI-IW: 21; CPI-UNME: 25; CPI-RL: 20. - Outlets: CPI-IW: 16,500; CPI-UNME: 30,660; CPI-RL: 1,461. - Items: CPI-IW: 260; CPI-UNME: 250; CPI-RL: 180. - Price quotes: CPI-IW: 160,000; CPI-UNME: 255,500; CPI-RL: 61,000. - Index published for: CPI-IW: All-India and 76 centers (with caveat above); CPI-UNME: All-India and 59 centers; CPI-RL: All-India and 20 states. ### Observations and recommendations from the National Statistical Commission (NSC) - The NSC (2001) states the CPI-IW is unsatisfactory as a measure of inflation in modern India because of limited population coverage and outdated weights. - The NSC notes WPI is in practice the preferred measure but is an inadequate measure of inflation. - NSC recommends: - An all-India CPI covering the whole population should be compiled, possibly by combining a CPI for the whole rural population and a CPI for the whole urban population. - Weights should be updated every five years and no later than every ten years. - Price collection system should be streamlined and augmented to improve coordination and provide price data for compilation of an all-India CPI. - Administrative procedures for weight revisions should be streamlined to secure earlier implementation of new weights. ### Ongoing work and responsibilities - The World Bank project plan for modernization of the statistical system supports development of an all-India CPI and activities to improve price collection and the quality and timeliness of sources for weighting data. - Work on an all-India CPI has been initiated under CSO responsibility; weights will refer to 1999−2000 based on a family expenditure survey. - Price collection is to be undertaken by NSSO and the Labour Bureau in cooperation; compilation and dissemination will be undertaken by CSO. - It is too early to indicate the exact time for release of an all-India CPI; the Indian Government will decide when it can be published. ### Prerequisites of quality — legal and institutional environment (CPI-IW) - The Government of India (Allocation of Business) Rules, 1961 (with subsequent amendments) assigns responsibility for collection, compilation and dissemination of CPI-IW to the Ministry of Labour; compilation and dissemination is undertaken by the Labour Bureau. - The Minister holds final authority for all decisions regarding CPI-IW. - CPI-IW has been compiled by the Labour Bureau since 1944; the Minimum Wages Act of 1948 assigns compilation responsibility to the Ministry of Labour. - A reliable all-India index was compiled for 1958−59 based on the Family Living Survey and TAC recommendations; a TAC secretariat exists in CSO. - Major changes to CPI-IW are subject to a tripartite hearing process (labour market parties and central government) before implementation. ### Data sharing and coordination - All-India CPI-IW is compiled on prices collected in 70 centers used for compilation, distributed in 21 states or union territories, grouped in five regions with regional offices providing technical assistance. - Price collectors and supervisors are employees of the State Governments working in Directorates of Economics and Statistics and Labour Departments engaged by the Labour Bureau on a part-time basis. - Labour Bureau compiles CPIs for six additional centers on request of State Governments, but these are not included in the all-India CPI. - Source data for weights are based on a family income and expenditure survey by NSSO on behalf of the Labour Bureau. - Methodologies of all CPIs are examined and approved by TAC. - There is no ongoing data sharing between Labour Bureau divisions responsible for CPI-IW and CPI-RL or between Labour Bureau and CSO (CPI-UNME). ### Confidentiality and respondent engagement - Confidentiality of respondents is maintained through Central Civil Services (Conduct) Rules, 1964; violations can result in fines and dismissal and such penalties have been applied where violation occurred. - Access to individual data is restricted; passwords are required for computer access; published index series are aggregated to prevent disclosure. - Respondents are informed that information will be used for statistical purposes only and will not enable identification of particulars. - The Labour Bureau has no formal legal authority to obtain requested data, but outlets generally do not refuse price collectors; procedures ensure proper and timely voluntary recording. ### Resources and processes - Staffing for CPI-IW: 58 full-time persons in the central office; 22 persons in five regional offices; 94 price supervisors; 261 price collectors in the centers. - New staff undergo a two-year training course; seminars and workshops are held for staff and users. - Little research on CPI methodology is carried out and participation in international work on price statistics has not been a priority. - Computer resources are sufficient; most centers send collected prices by mail; five centers report electronically via internet and others are encouraged to follow. - Financial resources are adequate; resources have been allocated for developing a new statistical system based on an Oracle database platform expected before the end of 2002, and for a major revision of CPI-IW including updating weights to 1999−2000. - Managers promote efficiency; rules and data formats are harmonized across states; implementation of the new statistical system is expected to further improve efficiency. - Internal processes exist to measure resources used; compilation process has been assessed by outside bodies, for example the Report of the Study Group on Labour Statistics (working group under the Ministry of Labour, 1999). *Source: _cr0496 - 4.4 Revision policy and practice* ### 0.3 Quality awareness ### _cr0496 - 0.3 Quality awareness ### 0.3.1 Processes are in place to focus on quality - Managers and staff are aware of and sensitive to the dimensions of data quality; integrity and reliability of the CPI-IW are described as eminent features. - Staff are instructed to comply strictly with rules regarding integrity and confidentiality to prevent influence from other parties. - Consistency in concepts and published data is a high priority because small discrepancies can affect wages and allowances indexed to the CPI-IW. - Staff are trained and instructed to follow rules and procedures in CPI-IW compilation to ensure index quality. ### 0.3.2 Processes are in place to monitor collection, processing, and dissemination quality - Regional offices and price supervisors monitor compliance with guidelines for price collectors. - Data processing is checked each month according to a fixed schedule for manual and automatic checking and validation. - Indexes down to item level are checked and cross-checked across item groups and centers. - Two states compile indexes based on the same prices collected by CPI-IW price collectors; these state indexes are used for extra checking and validation against Labour Bureau results. - Final index figures are double checked before publication. - The TAC provides guidance and recommendations on quality and strategies for improving data production; although advisory, its recommendations are followed in practice. ### 0.3.3 Processes to handle quality tradeoffs and plan for emerging needs - Tradeoffs between timeliness and accuracy/reliability are addressed by improving price collection, data compilation, and validation systems. - Further quality improvements are expected with implementation of a new statistical system. - The TAC may raise new data requirements and methodological issues; Labour Bureau responds and periodically meets main users to review series and methods. - Updating of CPI-IW weights (currently referring back to 1981−82) has long been viewed as the most important requirement for improvement. - The Labour Bureau conducted a Working Class Family Income and Expenditure Survey during 1999-2000 and derived a new set of expenditure weights. - Compilation of a revised CPI-IW based on the new weights is in process and "may be ready for release in 2003." The revised CPI-IW will not be introduced before tripartite meetings and TAC approval. ### 1. Integrity — Professionalism, Transparency, Ethical standards 1.1 Professionalism - Legal/administrative safeguards: Allocation of Business Rules and the Minimum Wages Act, 1948 address professional independence and prohibit interference in CPI-IW compilation and dissemination. - There is a tradition of non-interference and impartiality; tripartite hearing process supports open decision making. - Professionalism promoted by a two-year training course for new staff; occasional courses and workshops for staff and main users. 1.1.2 Source and technique choices - Choices of source data and statistical techniques for sampling, processing and validation are made solely on statistical considerations by bureau staff. - A methodological document is available on request; it is not available on the Bureau’s homepage. 1.1.3 Commenting on misuse - The Labour Bureau publicly comments on erroneous interpretations or misuse of statistical series. - Explanatory materials and documentation are provided to prevent misinterpretation or misuse. - Example: when differences in annual growth rates between CPI-IW and the wholesale price index were intensively discussed, the Bureau produced the 2001 report "Variation in inflation rate depicted by the wholesale price index and the CPI-IW during 1995-99." 1.2 Transparency - Terms and conditions for compilation and dissemination are publicly available in the Indian Labour Yearbook, Reference Book on Consumer Price Index Numbers, Labour Bureau’s Annual Report on Consumer Price Index Numbers, press releases, and on the Bureau’s homepage. - Main terms and conditions are also published on the IMF’s DSBB. - CPI-IW is released simultaneously to all users; no parties, including other government agencies, receive data in advance. This is publicly identified on the IMF’s DSBB. - Data released are clearly identified as the Labour Bureau's product. - Major methodological changes are introduced only after discussion and agreement in tripartite meetings and TAC consultations; notices of changes are released to the public when changes take effect. 1.3 Ethical standards - Staff behavior guidelines are outlined in the Civil Services Conduct Rules and are implemented and followed in daily work. - The Director and Chief of Division regularly remind staff to maintain integrity, confidentiality, and impartiality. ### 2. Methodological Soundness — Concepts, Scope, Classification, Recording 2.1 Concepts and definitions - Index population concept/definition: industrial worker families only. - Industrial worker families: at least one member employed as a manual worker in one of seven industrial sectors (factories, mines, plantations, railways, public transport, electricity and distribution establishment and ports and docks) and deriving 50 percent or more of their income through this employment. - Selection of CPI-IW centers is based on three sectors only: factories, plantations, and mining. - Consumption expenditure concept broadly in line with SNA recommendations, including household purchases for final consumption; second-hand goods such as used cars are not included. - The same national standards will be followed in the revised CPI-IW expected for publication in 2003. 2.2 Scope - Scope confined to industrial worker families rather than whole resident households as recommended in 1993 SNA. - Exclusions: institutional households, urban non-manual workers, rural labourers, households whose primary activity is farming or fishing, and foreigners (tourists). - Consumption expenditure scope follows 1993 SNA broadly: purchases for final consumption plus imputed values, own-account production valued at imputed market prices, rental equivalent for owner-occupied housing; all fixed capital formation excluded; expenditure on services of illegal market goods and services excluded. 2.3 Classification/sectorization - Household classification follows national standards determined by the NSSO; NSSO provides detailed guidelines to field staff. - Classification of households’ consumption expenditure follows NSSO national classification, addressing timing, credit purchase, payment in kind and imputations. - The classification does not follow SNA’s Classification of Individual Consumption by Purpose and deviations are not kept under review. 2.4 Basis for recording - Price concept follows purchaser prices in SNA: prices generally include indirect taxes less subsidies; discounts and rebates available to all consumers are deducted. - Consumption expenditure and CPI-IW weights are valued on purchaser prices basis. - Prices recorded at the time of visit by price collectors (accrual basis in practice). - Grossing/netting procedures broadly follow good practices; purchase of existing goods is excluded so no netting for used goods (e.g., used cars). ### 3. Accuracy and Reliability — Source data and Statistical techniques 3.1 Source data - Weights source: Working Class Family Income and Expenditure Survey conducted by NSSO during 1981-82. - Survey coverage: approximately 32,600 industrial worker families in 70 centers located in 21 states or union territories. - Center selection: purposive with respect to industrial importance and geographic location; maximum of five centers per industrial sector in a state. - Population covered by the sample constitutes roughly 20 percent of the total population in India. - NSSO carries out family surveys every five years, but the regular five-yearly NSSO household sampling frame cannot be used directly for CPI-IW due to specific coverage; a special NSSO survey is required on request of the Labour Bureau. - Expenditure classification: about 260 item groups for all-India, varying from 110 to 170 from center to center. - Collected expenditure data includes market purchases, own-production imputed at market prices, and imputed rental value of owner-occupied dwellings. - Price data collection: - Volatile items (meat, vegetables, fruits): collected weekly. - Less volatile items (utensils, furniture, clothing, household appliances): collected monthly. - House rents, school/college fees, other infrequently varying prices: collected every six months. - Total sample: about 260 items, 160,000 prices collected from 16,500 outlets and open markets in the 70 centers. - Item selection: generally items accounting for more than one per cent of the expenditure group and with regularly available prices are included; representative items are chosen for omitted items. - Outlet sampling: two outlets per item per locality/market plus two reserve outlets; number of localities/markets varies by center; outlets selected by cutoff sampling for cost-efficient coverage. - Detailed product variety specifications are provided to collectors; collectors record specification changes and follow price developments in the press for verification. - Main user groups, the CSO, and the TAC can raise questions on specific CPI-IW issues. 3.1.2 Source data approximation - Source data for prices and weights broadly approximate CPI-IW definitions, scope and classifications because NSSO family survey and CPI-IW are closely linked. - Current weights are based on source data from 1981-82; no adjustments have been made for changes in consumption patterns or new products, so divergences exist between weight source data and index scope. 3.1.3 Timeliness of source data - Weights source data are outdated. - A special CPI-IW weights survey was carried out for 1999−2000 (September 1999−August 2000) to replace 1981−82 weights. - Price data are timely: CPI-IW can be published before the end of the month following the reference month. 3.2 Statistical techniques 3.2.1 Data compilation techniques - Detailed expenditure coverage: about 260 items, sufficient for detailed analysis. - Weight construction: based on industrial worker families’ consumption expenditure; household residential capital formation excluded; owner-occupied dwellings weight estimated at market rental values; purchases valued at actual prices paid; own-final consumption valuated at market prices when produced. - Elementary item indexes: calculated as the long term ratio of the arithmetic average prices for each center. - Rented dwellings sub-index: calculated as a chained index of ratios of arithmetic average prices with half-yearly links; overlapping prices matched each half-year to compute link. - Items sold through regular and subsidized outlets: weighted average price procedure applied. - Higher-level indexes: weighted average of item indexes using center-specific item weights (Laspeyres type indexes). - All-India CPI-IW: weighted average of the 70 center indexes; weights are estimated consumption expenditure of industrial worker households in each center relative to total consumption expenditure in all 70 centers. - Weight reference period: March 1981−February 1982. - Price reference period: the year 1982. - No adjustment made to account for price changes between weight and price reference periods due to lack of price series and perceived marginal importance. - When 1981−82 weights were introduced in 1988, linking factors were calculated and published with the new index series. - Treatment of missing prices: - Temporarily missing prices: item indexes estimated on basis of comparable products or carried forward. - If available prices for an item fall below 25 percent, prices ignored and preceding month’s item index carried forward or estimated from comparable markets. - Treatment of permanently unavailable varieties: - Substitute of similar quality: substituted and whole price change included. - Replacement of different but comparable quality: overlapping prices used to adjust for quality difference. - Replacement with substantial quality shift: new variety linked into index to show no change (assumes whole price change due to quality). - New items: - New products are not included until weights are updated (example: personal computers excluded until weight update). - Exclusion of new products can cause severe bias. - Seasonal items: handled by variable weights approach; when an item disappears it is excluded and remaining item weights rescaled. - Free houses (houses provided free by authorities): basic period imputed prices of these are kept constant, which appears to contradict CPI concept though weight importance is marginal. 3.2.2 Other statistical procedures - Scope and compilation method agreed with main users and finalized in consultation with TAC; not adjusted by external sources. - CPI-IW covers only industrial worker families; in terms of total household final consumption expenditure the CPI-IW covers less than 50 percent. *Report: Price Statistics (Consumer Price Index) — sections 0.3–3.2.2* ### 3.3 Assessment and validation of source data ### _cr0496 - 3.3 Assessment and validation of source data ### Assessment and validation of source data (CPI-IW) - Source data (censuses, sample surveys, administrative records) are routinely assessed for coverage, sample error, response error, and nonsampling error; results are monitored and made available to guide planning. - Price data monitoring and validation: - Price data are routinely assessed for errors by price collectors and by the Labour Bureau as part of the monthly production of the CPI-IW. - Data are examined and checked for outliers by comparing data over time and across product groups at the same point in time. - Due to the judgemental nature of the sample of centers, outlets, items and varieties, it is not possible to calculate meaningful figures on sampling errors. - Nonresponse is minimized by training price collectors and selecting “reserve” outlets. - Methods applied in case of nonresponse (missing prices) are published and available on request. - Expenditure survey and weights: - The expenditure survey for industrial worker families (data source for weights) is carried out by the NSSO. - Misclassification, non-response and other measurement errors are resolved by the NSSO in consultation with the Labour Bureau during survey production. - NSSO instructions to field staff describe definitions, classifications, and rules to prevent mistakes and errors. - The survey is carried out after close cooperation between the NSSO and the Labour Bureau to ensure the expenditure breakdowns are consistent with the CPI. ### Assessment and validation of intermediate data and statistical outputs - Validation against other indexes: - Intermediate data are compared with other price indexes, such as the CPI-RL and the CPI-UNME, as part of regular scrutiny of weekly and monthly price data. - Investigation of discrepancies: - Unusual movements in prices for particular centers, items or price collectors are investigated. - Central office may contact regional officers or supervisors for verification of individual observations. - Statistical discrepancies between indexes for different centers or product groups are investigated and measures taken to remove or explain them. - Indexes calculated by the Labour Bureau are routinely checked each month against CPI-RL and CPI-UNME and the indexes compiled by two states. ### Revision studies (CPI-IW) - Revision practice and studies: - Center-level CPI-IWs and the all-India CPI-IW are final when first published and are not subject to revision. - Revisions of weights are thoroughly examined by the Labour Bureau; results are communicated to main users and the TAC; possible actions (for example, expanding the sample of items for price collection) are discussed and agreed. - Old price index series are not recalculated using the new set of weights. ### Serviceability — Relevance, timeliness, consistency, revision policy - Relevance: - Periodic consultation process with the CSO and the TAC and main users; domestic users’ needs are considered after discussion and agreement. - Concerns of international or macroeconomic users (need for overall inflation measure and detailed subindices) have not yet been met due to confined coverage of the CPI-IW; comparison with international statistics is hampered. - Timeliness and periodicity: - Both center-level and all-India CPI-IW are published on the last working day in the month following the reference month, meeting SDDS requirements. - Both center-level and all-India CPI-IW are published monthly according to SDDS standards. - Consistency: - Both center-level and all-India CPI-IW are consistent with the weighted average of sub-indexes of the index. - Overall all-India CPI-IW is consistent with the weighted average of center-level indexes. - Consistent time series data from August 1968 to the present are available on the Labour Bureau’s homepage (www.labourbureau.nic.in), including linking factors on center-level and for all-India between the new and the old CPI-IW series. - CPI-IW is not consistent or reconcilable with CPI-RL or CPI-UNME due to specific index population coverage; significant divergences in growth rates have been found. - On a medium or longer term scale CPI-IW is broadly in line with the WPI, although for the last half of the 1990’s considerable and sustainable differences appeared. - Revision policy and practice: - CPI-IW is considered final when published and has never been revised. - Revision of weights is undertaken by the Labour Bureau in consultation with CSO and TAC. - Weighting data have not been revised regularly (e.g., every five or ten years); a new set of weights referring to 1999−2000 is under construction. - No preliminary index data are published. - Studies and analyses of revisions are made public for main aggregates only. ### Accessibility — Data, metadata, and user assistance - Data accessibility and dissemination: - CPI-IW is presented in clear, user-friendly tables but indexes are published only for five main aggregates: - (1) Food, pan, supari, tobacco, and intoxicants; - (2) Fuel and Light; - (3) Housing; - (4) Clothing, bedding and footwear; - (5) Miscellaneous. - Nine sub-aggregates under main aggregate 1 and five sub-aggregates under main aggregate 5 are published; item-level indexes (e.g., fuel, electricity, all goods, all services) are not available. - Dissemination media and formats are adequate: monthly CPI-IW published in press release, on the Labour Bureau’s homepage, in the Monthly Index Letter and in Indian Labour Journal. - Monthly indexes are sent to some 1000 key users by mail. - All-India CPI-IW and center-level indexes are published in the annual report Consumer Price Index Numbers. - The home page contains, free of charge, latest data and time series of the all-India CPI-IW back to 1968, 12-month moving averages, annual inflation rates and the center-level indexes for the last two months; time series of the CPI-RL are also available. - Monthly CPI-IW is released according to a preannounced schedule and simultaneously to all users; no advance information is provided to any parties. - Unpublished (but non-confidential) specialized tabulations or detailed item-level indexes are provided on request; availability of nonpublished data is not publicly listed but is well known to major users. - Metadata accessibility: - Documentation on concepts, scope, classifications, basis of recording, data sources, and statistical techniques is available in Consumer Price Index Numbers in India (1989); the annual report contains brief methodological documentation. - Published metadata does not address deviations from internationally accepted standards. - The SDDS summary methodology page has not yet been completed. - Metadata level of detail is adapted primarily to employer’s and employees organizations and Central and State Governments. - Assistance to users: - Monthly press release identifies the postal address of the Bureau, the Bureau’s homepage and e-mail address. - Annual report identifies only the address of the Bureau’s homepage. - Names and telephone numbers of specific contact persons are not routinely published, but the Bureau’s home page contains names and addresses of senior staff. - A catalogue of publications is available in Indian Labour Yearbook and in Pocket Book of Labour Statistics (annual); a list of publications and their prices is available on the Bureau’s homepage. *Source: _cr0496 - 3.3 Assessment and validation of source data* ### 1. Integrity ### 1. Integrity ### Professionalism - The office of the Economic Adviser operates with professional independence and integrity under the Ministry of Commerce and Industry via the Allocation of Business Rules; “There is no interference from the ministry or any other government organization and the compilation of WPI is done on an impartial basis and in a professional manner.” - Professional support activities: - Publication of methodological reports. - Participation in and organization of meetings and workshops on price index issues; TAC may initiate meetings and raise questions to the Office of the Economic Adviser. - Recent training program organized for price index officers of the Central Bank of Nepal. - Broader international exposure has had “little or no priority.” - Choices of data sources and statistical techniques: - Decided by the Working Group on the Revision of the WPI “based solely on statistical and professional considerations.” - Decisions published in hard copy and available on the office’s homepage (www.eaindustry.nic.in). - Right to comment on misuse: - The Office of the Economic Adviser is “entitled to comment publicly on erroneous interpretations or misuse of the statistical series” and actively uses this right; provides analysis and explanatory material on request. ### Transparency - Terms and conditions: - Compilation terms as laid down in Allocation of Business Rules and other administrative laws are published in Hindi and English and available from government publication bookstores; a summary appears on the IMF’s DSBB. - Internal government access prior to release: - WPI is finalized each Friday; Press Release is embargoed until Sunday. - The embargoed Friday Press Release is made available on Friday to the Ministry of Finance and the Reserve Bank of India. - Internal governmental access prior to public release is not identified on the IMF’s DSBB. - Product identification: - Data released in hard copy or on the internet are clearly identified as products of the Office of the Economic Adviser; attribution is not requested when WPI is used by others. - Advance notice of major changes: - Advance notice of major changes in methodology, data sources, or statistical techniques is given in the office’s Press Release and to major users (MOF, RBI, other agencies) via bodies such as the TAC. ### Ethical standards - Staff behavior governed by the comprehensive Civil Services Conduct Rules covering duties, confidentiality, and personal conduct; staff are aware and periodically reminded of these rules. ### 2. Methodological Soundness ### Concepts and definitions - Purpose and coverage: - The WPI’s purpose is to measure developments in wholesale prices for Indian requirements; WPI is “generally used as the headline measure of inflation” in India. - Authorities include imported goods in the index aiming not to restrict to domestically produced items. - Conceptual alignment: - Concepts and definitions for weights and prices are “not consistent with those for a producer price index,” which internationally is regarded as analytically more meaningful. - Deviations from the 1993 SNA guidelines are under review as part of updating WPI weights. ### Scope - Scope description: - Scope is wholesale transactions of goods on domestic markets; services are not within the scope. - WPI covers primary products (agriculture and mining), energy (fuel, power, light and lubricants), and manufactured products. - Treatment of imports: - Imported goods are included only partially and indirectly: for manufactured products weights include market value of domestically produced goods plus market value of imported goods, but prices are collected for domestically produced goods only; imported products are excluded from the index. - For primary products and energy, only goods produced for the domestic market by resident enterprises are covered; imports of primary products and energy do not enter weights and no prices for these are collected. - Delimitation of market enterprises broadly accords with 1993 SNA; free zones/bonded warehouses/offshore factories under customs control are excluded. - Differences from SNA: - WPI excludes market services, changes in output inventories, own-account production of market goods for own final consumption, output of market goods for own-account fixed capital formation, production of housing services of owner-occupiers for their own consumption, and illegal market goods and services. - NSC recommendation: - Include the services sector in the WPI and restructure WPI to introduce stages of processing indexes. ### Classification / sectorization - Classification systems: - One- and two-digit level: based on 1968 SNA. - Below two-digit level: follows National Industrial Classification, 1987, broadly based on ISIC rev. 2. - No product classification applied. - Deviations from international guidelines are under review as part of compiling new weights based on national accounts and the Annual Survey of Industries for 1998−99. ### Basis for recording - Valuation rules: - Partially in accordance with 1968 SNA. - At one- and two-digit NIC level weights are calculated on gross national product at market prices, adjusted for exclusion of services. - Below two-digit level: - Energy and manufactured products weights based on Annual Survey of Industry figures for net trade value recorded at market prices (basic prices plus product taxes). - Primary products weights based on Ministry of Agriculture data for production values at primary market prices (wholesale prices); agricultural product weights averaged over three years to smooth weather-induced extremes. - Total WPI consists of 435 commodity groups. - Recording basis: - Prices are not entirely recorded on an accrual basis; weekly respondents indicate price charged during the week or, if no sale, the price that would have been charged. - Grossing/netting: - No grossing/netting procedures are carried out as stages of processing indexes are not compiled; NSC recommended restructuring to introduce stages of processing. ### 3. Accuracy and Reliability ### Source data - Weight source data limitations: - In absence of a comprehensive and up-to-date business register, weight source data are “less than adequate.” - Weights derived from national accounts combined with Annual Survey of Industries (energy and manufacturing) and Ministry of Agriculture (primary products). - Commodity group weights largely derived from the detailed Annual Survey of Industries (carried out every five years) and Ministry of Agriculture sales data (average of three years centered on the Survey year). - Current WPI weights are based on the survey undertaken in 1993−94; compilation of new weights based on 1998-99 is in progress. - Annual Survey of Industries uses cut-off sampling; units below cut-off covered by random sampling. The NSC report states the list of registered manufacturing units is “grossly incomplete” and includes inactive units. - Source data for energy and primary products are of “sufficient coverage.” - Coverage estimates: - Coverage of total output and activities within main industrial group at ISIC one-digit level is difficult to estimate due to questionable weighting source data for manufacturing, but “coverage of both is reported to be above 80 percent.” - Weights, commodity groups, and price quotations (Table 4): - Primary products — Weight (in percent): 22; No. of commodity groups: 98; No. of price quotations: 455 - Energy — Weight (in percent): 14; No. of commodity groups: 19; No. of price quotations: 72 - Manufactured products — Weight (in percent): 64; No. of commodity groups: 318; No. of price quotations: 1391 - Total — Weight (in percent): 100; No. of commodity groups: 435; No. of price quotations: 1918 - Price collection: - Prices collected weekly. - For manufactured products and energy, the five largest producers for each commodity group are selected for price collection. - Less than 2,000 prices are collected in total. - Majority of prices collected from individual respondents; remainder from state bodies and manufacturer associations. - Individual respondents mainly sampled from the list of registered manufacturing units, raising questions about coverage and representativity. - Prices for primary products obtained mainly from the Ministry of Agriculture and assessed as comprehensive. - Household unincorporated enterprises excluded from both the Annual Survey of Industries and the WPI. - Detailed Annual Survey of Industries conducted every five years; a less comprehensive annual survey exists but is insufficient for WPI weights. No ad-hoc surveys are conducted to fill gaps. - Timeliness: - Source data for weights refer to 1993-94; new weights based on 1998-99 are in progress. - Price source data are very timely; WPI is compiled weekly with tight collection deadlines; internet and fax reporting options introduced to improve timeliness; Office maintains close contact with other departments/agencies for price data. ### Statistical techniques - Compilation methods: - WPI compiled and published for commodity groups at the four-digit level according to the National Industrial Classification and for aggregates in classes, groups and main tabulation categories; not compiled according to branches of industries. - Detailed weights established on net trade values for manufactured products and energy, and production values at market prices for primary products. - Exclusions: growing crops (in progress), standing timber, stocks of fish, owner-occupied housing, large construction projects, output of large items of equipment. - Index calculation techniques: - Detailed commodity group indexes calculated as unweighted arithmetic average of long term price relatives for each product group. - Higher level indexes calculated as weighted averages of underlying commodity group or subgroup indexes (Laspeyres type). - Weight reference period and pricing base period refer to 1993−94; linking factors calculated when introducing new weights (last change in 2000 when 1993−94 weights were brought into use). - Treatment of missing prices: - Prices for missing products are carried forward usually for two−three weeks depending on product type. - If product does not reappear after two−three weeks, respondent requested to select a replacement product as similar as possible and to provide backward prices for overlap; if no similar replacement, product deleted from sample. - Over time the number of priced products decreases, reducing reliability and representativity. - No quality adjustment is carried out; only products of similar quality are included when replacements occur. - Seasonal products handled by variable weights: weight of out-of-season variety assigned to in-season variety of same product for which prices are available. - New products: - New products are not included in the WPI until the next weight revision, contrary to international recommendations; this can be up to seven or eight years after the weight reference period if weights revised every five years, potentially causing bias. - Adjustments to source data: - Adjustments made when source data concepts are not consistent with WPI; lists of producing units examined and checked against other sources prior to implementing new weights; adjustments of weights and selection of producing units not on lists may be undertaken to improve coverage and representativity. - Overall measure and coverage gap: - Regular compilation provides only to some extent a comprehensive measure of price change in covered activities. - Proportion of output in scope but not covered by WPI is difficult to estimate; may be “from 10−20 percent or even over 20 percent” as coverage reduces over time due to non-inclusion of new products. - Services sector accounts for “roughly 50 percent of total output” and is excluded; hence the proportion of total output of the economy not covered in the regular WPI compilation “lies well above 60 percent.” *Source: _cr0496 - 1. Integrity.* ### 3.3 Assessment and validation of source data ### 3.3 Assessment and validation of source data ### Source data assessment and validation - Source data—including censuses, sample surveys and administrative records—are routinely assessed for coverage, sample error, response error, and non-sampling error; the results of the assessments are monitored and made available to guide planning. - Source data for the weights: - Information about non-sampling errors, methods of imputation, non-response and coverage of institutional units and products are published in reports from the NSSO on the Annual Survey of Industries. - Sample errors are not available. - Adjustment to the weighting source data of the current WPI made by the office of the Economic Adviser is described in Revision of Index Numbers of Wholesale Prices in India (1999). - Price data validation: - Price data are checked both manually and by computer run procedures and outliers are identified and checked after contact with the respondents. - Price data received from government agencies, trade associations, regulatory authorities, are checked according to the same procedures as for individual respondents. - Appropriate measures are taken to validate the source data for weights and make them consistent with WPI concepts. ### Assessment and validation of intermediate data and statistical outputs - Intermediate data validation: - Main intermediate data are validated against other information where applicable. - Detailed WPI sub-indexes, down to commodity-group indexes are checked and compared with other sources such as the CPI-IW, CPI-UNME and CPI-RL, or with information from business organizations. - Investigation of statistical discrepancies and indicators of problems: - Unusual movements in the index are investigated; example given: 2001 when a sharp rise in fuel prices took place. - Information about non-released data is not published. - When released, unusual movements in the WPI or its sub-indexes are explained in the weekly Press Release (also available on the office’s homepage). - Statistical outputs: - The WPI is compiled and published for all commodity groups and all higher level product-group indexes are derived from the lower level indexes of which they consist; hence there are no discrepancies. ### Revision studies - Routine revision analyses: - When first published, the WPI is preliminary. It is made final after a period of eight weeks on the basis of the information available up to that point in time. - Differences between preliminary and final data are investigated. - In periods of weights revisions analysis is undertaken to assess changes in the weighting data. - When the new set of 1993−94 weights was introduced in the WPI in 2000, the index was recalculated from 1993−94 with the new set of weights, and comparisons with the old index series with 1981−82 weights were made and published. *Source: _cr0496 - 3.3 Assessment and validation of source data* ### 0.3 Quality awareness ### 0.3 Quality awareness ### 0.3.1 Processes are in place to focus on quality - Quality is described as a primary element in accounting and statistical work, based on the capabilities and experience of staff members in fiscal data compiling units. - Documented internal audit and reporting responsibility of the CGA and the independent auditing mandate of the CAG, including the General Standards No. 5 of Government Auditing, reflect a deep-seated objective of quality. - There is no additionally available documented evidence of the essential role of quality specifically in the area of statistical work. ### 0.3.2 Processes are in place to monitor the quality of the collection, processing, and dissemination of statistics - The accounting system of central and state governments has an embedded system of checks to help ensure quality of fiscal data. - There is no international statistical or accounting standard that is used for monitoring and improving statistical quality. (Accounting policies are based on the General Financial Rules and Receipt and Payment Rules, Government Accounting Rules 1990, and Form of Accounts of the Union and States (Basic) Rules.) - A committee set up by the CGA has submitted a Report recommending the establishment of a Government Accounting Standards Board; the Board, if established, would play a critical role in enhancing the accounting system for consistent macroeconomic statistics and accounting records on budgetary units of government. - Substantial efforts have been made to establish systematic arrangements to obtain feedback from users of fiscal data: - The MOF establishment of websites with reported email and telephone contacts reflects a systematic effort to obtain feedback to improve data quality. - Policymakers writing for The Report on the Committee on Fiscal Responsibility Legislation focused on three available fiscal variables compiled by the MOF on the central government: the fiscal deficit, the revenue deficit, and the primary deficit. - A team of experts submitted in June 2001 a Report of The Advisory Group on Fiscal Transparency to the Standing Committee on International Financial Standards and Codes, providing further feedback to compilers. - Note: While domestic feedback supports the statistical aggregates compiled and reported, the use of the three deficits mentioned does not conform with the 1986 international convention, which focuses on major analytical aggregates such as net lending and net borrowing as well as the deficit. ### 0.3.3 Processes are in place to deal with quality considerations, including tradeoffs within quality, and to guide planning for existing and emerging needs - The MOF has not considered or measured tradeoffs regarding the quality of fiscal data. - To help ensure data quality, the CGA uses a 15 digit classification code for all cash transactions. - The statistical system—with independent institutional and computer reviews, career service, and associated codes of conduct—is consistent with addressing quality in statistical planning. - The Report of the Advisory Group on Fiscal Transparency and the Report of the Committee on Fiscal Statistics Submitted to National Statistical Commission reflect processes and mechanisms aimed at addressing emerging data requirements. - Note: When the collection of local government data is established, a process for considering accuracy and timeliness goals will be needed. ### 1. Integrity #### 1.1 Professionalism - Compilation and dissemination of fiscal data are supported by laws that establish the independence of the CAG and RBI from the MOF. - The independent RBI and the MOF publish data on operations of the budgetary units of central and state governments. (The CAG had published combined data until 1987-88.) - The DEA, which compiles and reports GFS for publication in the GFS Yearbook, is not independent of the MOF; compromised annual reporting would likely be detected because users can compare with independent CAG source data. - There is no systematic effort to take advantage of international seminars and conferences to better utilize international guidelines and best practices. #### 1.1.2 Choices of sources and statistical techniques - Sources: - Provisional monthly and annual data for central government operations: accounting records of the CGA. - Annual data for state governments: state government auditing counterparts. - The statutory audit responsibilities for both central and state government accounts is with the CAG. - The Central Civil Services (Conduct) Rules, 1964 provide safeguards for GFS compilers against political influence. #### 1.1.3 Right to comment on erroneous interpretation and misuse - The CGA prescribes the form of accounts for central and state governments and has a specialized technical accounts group providing accounting advice. - Entities compiling and disseminating fiscal data are typically permitted to comment on erroneous interpretations or misuses of statistics. - (The CAG in the past has published general government data in the Combined Finance and Revenue Accounts, and is in the advanced stage of publishing more current annual data on central and state governments.) ### 1.2 Transparency #### 1.2.1 Terms and conditions availability - Laws and regulations broadly governing government accounting data reporting are freely disseminated to the public and summarized on the IMF’s DSBB. - Limitations on public access to detailed fiscal data are not identified; some additional details on provisional annual data on central government operations (particularly details on taxes) could be made available but are not unless specifically requested, and no public reference to this limitation is provided. - Records on annual audited accounts are comprehensive; transparency goals are consistent with additional data dissemination and publication of public access limits. #### 1.2.2 Internal governmental access prior to release - The sole authority for publishing annual and monthly provisional data on central government operations is the CGA; accounts are published upon approval only of the CGA. #### 1.2.3 Identification of statistical products - Statistical products of data disseminating agencies include identification of these agencies. - Statistical products of other agencies are often, but not always, identified in publications. - Example: Table 18 of the RBI Bulletin on central government accounts identifies the CGA as the data source but does not identify the CGA publication. - Tables 2.1 and 2.2 of the DEA Indian Public Finance Statistics do not identify the CGA publication (or source). #### 1.2.4 Advance notice of major changes - No evidence of notices being given for methodological changes that materially affect published data; in recent years there has been only one known change and no advance notice was given in that case. - Authorities state such changes would be reflected in official websites in the future; notifications will be needed during any migration toward implementing major aspects of the 2001 GFS methodology. - Note: A new accounting approach introduced in 1999−2000 excluded reporting of central government lending to state governments of funds provided through small savings. No advance notice is evident, though a note was included in Table 89 of the Handbook of Statistics on Indian Economy (RBI, 2001) and not identified in MOF Indian Public Finance Statistics 2000−2001. ### 1.3 Ethical standards #### 1.3.1 Guidelines for staff behavior - There is a published code of conduct for all government employees; violations call for punitive actions. - There is a required Statement of Immovable Property that calls for certain reporting when major purchases by individuals are conducted. - There is no specific reference to compilers and disseminators of fiscal data in the published code. - Periodic refresher courses regarding code-of-conduct guidelines are conducted in the CGA’s training institute. ### 2. Methodological soundness #### 2.1 Concepts and definitions ##### 2.1.1 Structure and standards - The overall structure of nationally reported fiscal data, but not a number of aggregates therein, is related to the IMF’s A Manual on Government Finance Statistics (GFSM 1986), which calls for reporting cash transactions and outstanding debt. - Links between national time series and GFSM 1986 exist, but some linkages (e.g., lending minus repayments, net borrowing, changes in cash balances) are often not transparent or straightforward. - No documented bridge table linking nationally reported aggregates and GFSM 1986 is available, reflecting periodic changes in national classification codes. - No migration path has been considered for implementing GFSM 2001 methodology in nationally appropriate stages. - The CGA views the existing accounting system as not lending itself to support the GFSM 2001 methodology. - Several official committees examined shifting from cash-based to accrual-based accounting; committees recognized shortcomings of cash basis and proposed supplementing with accrual accounting in specific areas but rejected a shift to full accrual accounting. - The CAG indicated plans to examine benefits of GFSM 2001 in due course. - The mission emphasized that GFSM 2001 calls for compiling a comprehensive and integrated set of stock and flow data, including balance sheet and holding gain data, and the need for a migration path in nationally determined stages. - The GFSM 2001 methodology calls for compiling both accrual and cash data; the statistical reporting system accommodates the use of cash-based accounting records alone. #### 2.2 Scope ##### 2.2.1 Coverage consistency - Available annual fiscal data, taken from accounts of budgetary units of central and state governments, do not include certain relatively small extrabudgetary funds and local government operations, which may become more significant. - The seventy-third and seventy-fourth amendments of the Constitution recognize local governments as an independent level and outline powers and responsibilities; absence of fiscal reporting on local governments (totaling about 250,000) following required implementation would represent a significant omission, particularly as their role expands (their expenditure apparently reflects, at this time, less than five percent of general government expenditure). - Over time, reporting on Public Sector Undertakings as part of the public sector may be required. - Annual data on economic flows and stock holdings of budgetary units of central and state governments, between these levels, are available, enabling consolidated general government data (except local government). - Provisional annual fiscal data on combined accounts of budgetary units are replaced by final data after audited accounting reports become available (after about one year according to the CAG) and compiled statistics are published (roughly two years after the reference year). - No supplementary data on quasi-fiscal activity are provided. - Authorities indicated they would take into account the GFSM 2001 methodology for future statistical planning; GFSM 2001 is in harmony with the System of National Accounts 1993, the IMF’s Balance of Payments Manual, fifth edition, and the IMF’s Monetary and Financial Statistics Manual 2000. - GFSM 2001 covers, in an integrated manner, all economic stocks and flows of units within its scope as specified in GFSM 2001 Tables 1–9 (Classification of Revenue; Economic Classification of Expense; Classification of Transactions in Assets and Liabilities; Classification of Holding Gains in Assets and Liabilities; Volume Changes in Assets and Liabilities; Classification of Assets and Liabilities; Classification of Outlays by Functions of Government; Classification of Transactions in Financial Assets and Liabilities by Sector; Statement of Sources and Uses of Cash). #### 2.3 Classification/sectorization ##### 2.3.1 Consistency with international standards - Institutional sectors are defined in accordance with the 1993 SNA, but they are not fully identified; references to extrabudgetary funds as part of the central government are typically omitted. - Extrabudgetary funds commonly omitted include the Central Road Fund, the Sugar Development Fund, the Steel Development Fund, and Railway Reserve Funds (identified in the 2001 Report on the Advisory Group on Fiscal Transparency). - Absence of fully reported identification of extrabudgetary funds as part of government is not consistent with transparency for the government sector. - Revenue, expenditure, and financing items are reported largely in line with GFSM 1986, although some linkages are not transparent (e.g., reporting of privatization receipts and cash balance changes is not obvious in the MOF’s Indian Public Finance Statistics). - No bridge table linking classification codes with nationally reported or GFS Yearbook aggregates exists. #### 2.4 Basis for recording ##### 2.4.1 Market prices - Current transactions are recorded on a current market basis. - Outstanding debt data are available on both the basis of the amount due on maturity (conforming with GFSM 1986) and the market price (conforming with GFSM 2001). - Transactions in foreign currency are converted to rupees using the exchange rate prevailing in the market at the moment they take place; outstanding balances denominated in foreign exchange are valued at exchange rates on the reporting date for the balance sheet. ##### 2.4.2 Accrual vs cash recording - Transactions of government are recorded on a cash basis, in accordance with GFSM 1986. - Only limited plans are in process to decide on whether, or the extent to which, accrual accounting will be introduced to supplement cash-based reporting. - No planning was evident for a migration path to implement various aspects of GFSM 2001. - The Report of the Committee on Fiscal Statistics (May 2001) provides a partial list of drawbacks of cash accounting. - The Report of the Advisory Group on Fiscal Transparency suggests advantages of accrual accounting and initial steps such as compilation and publishing of supplementary information (e.g., accounts receivable on revenue and commitments to government employee pension plans). - The Report of the Committee on Fiscal Responsibility Legislation supports continuation of the cash-based accounting system. - For GFSM 2001 international reporting (from 2003), reporting will include both accrual and cash basis data; 2003 GFS Yearbook report forms will include tables calling for accrual data with certain classification categories (e.g., consumption of fixed capital), and compilers with only cash records would not have entries for those categories. - If pension liabilities to government employees are identified as liabilities under GFSM 2001, associated actuarial data will be needed. ##### 2.4.3 Grossing/netting procedures - All transactions are shown on a gross basis, except for borrowing and amortization transactions. - Certain corrective transactions (e.g., refunds of taxation) are appropriately netted against the original transactions. *Source: _cr0496 - 0.3 Quality awareness* ### 3. Accuracy and reliability ### 3. Accuracy and reliability ### 3.1 Source data - Source data are collected from comprehensive data collection programs that take into account country-specific conditions. - Central and state government transaction data and debt data are provided from administrative systems; debt data are reported on the basis of the amount due at maturity and on a market valuation basis. - Data are consolidated for the general government sector (excluding local governments); information to allow such consolidation is available. - Over time, significant source data on general government activities will become available at: http://www.cagindia.org. - Steps are not yet in place to permit collection of local government data or consolidation of general government data covering local governments. - The CAG, working with the MOF, would need to establish the level of reporting detail required for local governments to ensure consistent inclusion in consolidated general government data for the fiscal year 2004−2005. - The Eleventh Finance Commission has recommended grants be provided to local bodies to ensure they can properly report on their activities (see MOF Guidelines for the Utilization of Local Bodies Grants Recommended by the Eleventh Finance Commission). - Budget charts of accounts for central and state government budgetary units align with GFS categories; not yet for local governments. - The CAG is identifying the level of detail (including intergovernmental transactions and positions) to be mandated for local governments; if finalized soon and resources available, local governments could fully report by 2004−2005. - Data on public enterprises are available in the event consolidated public sector activities are envisioned; these include the book value of equity. - GFSM 2001 methodology calls for, as feasible, collecting government data on the market value of equity holdings for balance sheet inclusion. - Budget management systems do not presently include automatic derivation of GFS items from account data; the DEA has not yet worked closely enough with the CAG accounting and computer system to automate this step. - Timing of recording and valuation of source data are consistent with GFS concepts (the GFSM 1986 methodology). - Compilers in the statistical unit of the Economics Division of the DEA are aware of differences between source account data and GFS concepts. - Information published under financial accountability arrangements has a scope similar to GFS and can be reconciled with GFSM 1986 with some effort. - Timeliness of source data: - Final comprehensive annual data from budget management/accounting systems are provided after ten months. - Provisional monthly records of central government budgetary units are available after one month. - No data on extrabudgetary funds operations are available. - No monthly or quarterly data on state government operations had been made available to compilers. - CAG plans to develop monthly reporting of provisional aggregates of state government transactions after several months following the reference period. - MOF Department of Expenditure indicated capability to provide provisional quarterly data on budgetary units of state governments within two months of the reference period and to make these available to MOF statistical compilers. - Annual provisional data of many state government aggregates for the fiscal year ending in March are published in December of the same calendar year (in the RBI Bulletin). - Final more comprehensive data on state government activities have been published (in Indian Public Finance Statistics) two years after the end of the fiscal year, while audited account records are all available after about one year. - CAG indicated a substantial improvement in the timing availability of all audited records was feasible. ### 3.2 Statistical techniques - No current procedures are in place to estimate missing data for central and state government budgetary units because there are no missing data for these units. - After specifying local government reporting levels and mandated timeliness, there may be a need to establish procedures for estimating missing data on local governments if some units cannot respond in a timely manner. - No statistical techniques are employed to adjust reporting of fiscal data; no need for such adjustments is perceived at this time. ### 3.3 Assessment and validation of source data - Problems with material gaps in coverage have been identified: absence of monthly and quarterly state data and absence of any local government data; these issues are being addressed. - For state governments: - Compilers could collect provisional quarterly data from MOF sources. - CAG has plans for reporting subannual data, possibly on the CAG website. - For local governments: - Priority for implementing collection and reporting of consistent data is unclear. - The balance between accuracy and timeliness for local government data has yet to be established. - Provisional annual accounts on budgetary central government units are available two months after the end of the fiscal year; final comprehensive data are available within ten months. - The provisional nature of these data is identified; final comprehensive data are properly identified. ### 3.4 Assessment and validation of intermediate data and statistical outputs - Major fiscal aggregates reported nationally are reconcilable with GFS (1986) aggregates, but reconciliation is not always readily apparent due to differences in reporting systems and insufficient metadata. - Data on expenditure by economic type and by function are cross-checked for consistency. - No evidence provided that differences between fiscal and monetary data are addressed; however, central government data on budgetary units are reconciled each month, limiting inconsistency in fiscal–monetary linkages. - Fiscal data serve as a source for national accounts and balance of payments; harmonization depends on consistent identification of government units covered by respective datasets. ### 3.5 Revision studies - Revisions from provisional to final data incorporate all material data changes resulting from available up-to-date audited data. - Transitions from budget estimates to revised estimates, and from revised estimates to provisional fiscal data, include substantial actual transactions. - Major aspects of data revisions have been identified by the authorities. - Documentation on reasons for revisions and on direction and magnitude of revisions are not yet available. - Authorities believe revisions are small and provisional data are reliable and robust approximations of final audited data. - The mission observed that periodic studies of revisions are important for policymakers and compilers to assess the quality of reported provisional data. ### 4. Serviceability ### 4.1 Relevance - Fiscal data are compiled within the same timeframe as account preparations for budgetary units and are used in determining and evaluating fiscal policy. - Provisional general government data, aside from central government budgetary units, were not available with sufficient timeliness and detail for users to assess properly the achievement of social and fiscal policies due to: - Monthly and quarterly data on state governments not being made available to statistical compilers. - Annual final account data on all state operations being available only after about one year. - Absence of local government data. - The methodological basis and classification structure of available government data are largely adequate. - Details provided in monthly data for central government budgetary units fall short of analytical needs. - There is significant feedback from users via websites and contacts, but no feedback has been routinely sought. ### 4.2 Timeliness and periodicity - Timeliness: - Timeliness of monthly central government operations data, except for March data, is within the SDDS-prescribed one month after the reference period. - Timeliness of quarterly central government debt data is within one quarter after the reference period. - MOF plans to disseminate monthly central government debt data one month after the reference month. - For general government operations (central and state), main aggregates of annual data are released within three quarters after the reference period instead of the standard two quarters; the flexibility option is utilized for timeliness of these data. - Mission findings suggest timely sources of provisional quarterly consolidated data for all states exist; provisional quarterly data on central and state governments can be reported within one quarter. - Periodicity: - Central government operations data are published at least monthly and annually (consistent with SDDS). - General government operations data are published at least annually (consistent with SDDS). - Central government debt is published at least quarterly (consistent with SDDS). ### 4.3 Consistency - Internal consistency: - Fiscal data reporting in national publications and on official websites are similar for each level of government, for transactions and debt of each sector, and for components of each aggregate. - Steps are being taken to ensure complete and consistent sets of transaction data, including net lending, net borrowing and changes in cash positions, are transparently included in all fiscal reports. - GFS data sent to the IMF for the GFS Yearbook are consistent within the GFSM 1986 guidelines, which call for: - Deficit/surplus = (-) financing. - Major aggregates are consistent—(revenue & grants) less (expenditure & lending minus repayments) = sum of financing, where financing = net borrowing plus reductions in cash balances. - Table B expenditure (by function) = Table C expenditure (by economic type). - Domestic financing is consistent (allowing for holding gains) with change in domestic debt. - Foreign financing is consistent (allowing for holding gains) with change in foreign debt. - Transfers paid = transfers received between levels/subsectors of government. - Interest paid in Table B = interest paid in Table C. - Following 2003 introduction of GFS reporting for the GFS Yearbook based on GFSM 2001 classifications, compilers plan steps to ensure consistency for listed items, noting that reporting or recording systems need not have changed. - The Fund has a bridge table linking GFSM 1986 and GFSM 2001 classifications (as provided to the MOF). - If national account data are not available for certain transactions such as consumption of fixed capital, there will be no reported entries for these items. - Compilers should report the basis of recording and use main account data available (possibly a mix of cash and accrual data) for accrual reporting and cash data for cash tables in the GFS Yearbook. - Consistency requirements include: - Difference between opening and closing balance sheets for each asset/liability category equals sum of transactions, net holding gains and losses, and other changes to the volume of assets for that category. - If any component is derived residually, an annotation is published. - Net-operating balance less net-acquisition of nonfinancial assets equals net lending/borrowing. - Net lending/borrowing equals financing. - Components of revenue, expense, net acquisition of nonfinancial assets, and financing add to aggregates. - Detailed tables agree with government operations aggregates. - Cash deficit/surplus is harmonized with available accrual “policy balance” after exclusions specified. - Procedures exist to benchmark or link monthly and quarterly data to annual data. - Revisions due to annual benchmarking are within acceptable limits and information on benchmarking revisions is provided to users. - Sum of GFS aggregates for component levels equals consolidated aggregates less consolidation adjustments; net operating balance, net lending/borrowing, change in net worth, and net worth should add across subsectors. - Consistency over time: - Divergences from expected trends in revenue/expenditure relate to fiscal policy and/or economic developments. - Previous series are adjusted and identified to account for discontinuities from methodological changes. - Breaks in time series are identified and reasons explained. - Introduction of GFSM 2001 stages may require revising significant periods of data and reporting overlapping data for some periods. - Consistency with other frameworks: - Procedures are in place to help ensure fiscal data for central and state governments are harmonized with national accounts aggregates (net lending/borrowing, government consumption, net acquisition of nonfinancial assets). - Procedures are in place to help ensure fiscal financing data are harmonized with banking data, balance of payments data, and national accounts data; steps are being taken to identify and report these fiscal data. ### 4.4 Revision policy and practice - Revisions follow an understood schedule for central government budgetary units; schedule for reporting revised (final) annual data on state operations is not well identified. - Steps are being taken to implement a clear and published schedule for state governments to report timely data. - Steps are being taken to ensure revisions to provisional central and state data have a more predictable pattern within the regular publication schedule. - Provisional and final data are properly identified in published statistics; revised data are disseminated in the same way, often with more detail. - Coherence between provisional and final data seems sufficient to allow provisional data, despite minor revisions or insufficient detail, to be used for policy determination and analysis. - CGA website contains details of provisional and final accounts of the central government over the past few years. - Authorities observed that variations were minor and saw no need to provide time series of revisions or explanations for data revisions. - No time series of revisions of fiscal data for central government budgetary units and no documents of studies or analyses of data revisions are made available. - No documented or published analysis exists on how provisional data has differed from revised data to assess reliability of provisional data on central and state government operations. *Source: _cr0496 - 3. Accuracy and reliability* ### 5. Accessibility ### 5. Accessibility ### 5.1 Data accessibility - Presentation and interpretability - Fiscal data are presented in different ways that usually allow, with effort, major aggregates and balancing items to be identified and related to detailed underlying data. - Presentations of data on major aggregates are mixed regarding the ease with which proper identifications and interpretations by observers familiar with international statistical conventions can be made. - In the Indian Public Financial Statistics, there is no transparent summary of the aggregate statistics for the central government or for state governments. - Difficulties exist in fully identifying government transactions and balances in accounts also used in operations of entities not defined as government for statistical purposes. - It is difficult to identify the aggregates net borrowing, lending minus repayments, or changes in cash positions. - The statistics available on the Public Account and the Contingency Fund do not facilitate an understanding of their significance regarding central government transactions. - The DEA Key to the Budget Documents and the annual publication of the CGA’s office Accounts at a Glance (also available on the CGA website) facilitate an understanding of central government operations. - Fiscal accounts are presented in an acceptable manner for use in budget development and monitoring and are useful for economic and fiscal policy development. - National publications provide coverage and detail similar to account records, often with different aggregates than those set out in the GFSM 1986 tables. - Dissemination media and formats - Several annual government finance publications are officially issued by the central government, including The Annual Financial Statement, Provisional Accounts of the Union Government, Report of the Comptroller and Auditor General of India for the Union Government (Civil), the Economic Survey, India’s External Debt, and Indian Public Financial Statistics (covering central and state operations). - The State Finances—A Study of Budgets is issued by the RBI. - Monthly data on operations of budgetary central government units are disseminated by the CGA on official websites. - The MOF Budget Division of the DEA now issues central government debt data on a quarterly basis, and disseminates these data on a website in an adequate format. - Release schedule and simultaneity - The dissemination policy relating to fiscal data is widely understood and is publicized on websites. - The date of release of GFS publications is not typically indicated in preceding GFS publications or in a list of forthcoming publications bulletin. - The schedule on the MOF SDDS web site for releasing central government debt data was observed to not be current, although the authorities indicated plans to ensure its currency. - Statistical publications and new information on websites are made available to all users simultaneously, and without preferential treatment of selected users. - Access to nonpublished subaggregates - Nonpublished data, including detailed data, are often made available on request even though the amount of published data is significant. - The availability of detailed non-published data, and the terms and conditions on which it is made available, are not publicized in GFS publications. ### 5.2 Metadata accessibility - Documentation of concepts, scope, classifications, sources, and methods (C, S, & M) - Concepts, sources, and methods (C, S, & M) are not widely documented in disseminated reports. - C, S, & M have not been revised in recent years; authorities indicated no need to document or publish such changes to date. - As the authorities begin to implement various stages of the GFSM 2001 methodology, revisions to C, S, & M will need to be published. - A MOF-published document, An Economic and Functional Classification of the Central Government Budget, is helpful in describing and linking concepts, including financing concepts. - Nationally published data do not fully identify differences in reported aggregates from those reported according to international conventions on transaction data, which includes changes in cash positions. - Sources of account data on budgetary units are fairly evident but not clearly identified in much national reporting. - Compilation methods for accounting reports, including treatment of transactions in the Public Account and the Contingency Fund, are documented in accounting manuals (and on the CGA website). - Compilation methods for fiscal statistics, such as for the Indian Public Finance Statistics, are not documented or made available. - C, S, & M documentation of nationally published fiscal statistics does not identify differences from internationally accepted standards nor provide an explicit description of coverage and compilation problems. - Bridge tables linking source data and GFS, reflecting periodic changes in detailed national classification codes for accounts of budgetary units, are not documented or made available. - Level of detail for audiences - Published technical descriptions of concepts, but not sources and methods, are helpful but not complete for assessing strengths and weaknesses of fiscal data. - The C, S, & M information provided to general users in publications is not sufficient to allow them to understand the framework under which the statistics are produced. ### 5.3 Assistance to users - Contact points and responsiveness - Contact persons are identified on websites but not generally in publications. - Authorities indicated that prompt and knowledgeable service and support have been made available through these contacts, which have been able to provide rapid response to queries about misuse of fiscal data. - Catalogues and information on services - Producing agencies for fiscal data provide a variety of fiscal tables through their websites. - MOF data producing agencies generally do not provide a catalogue, or a full listing elsewhere, of their statistical products and services. _Source: _cr0496 - 5. Accessibility_ ### 1.3 Ethical standards ### 1.3 Ethical standards ### Ethical standards and staff behavior - All RBI staff are required to abide by the appropriate rules and regulations under the RBI Staff Regulations Act of 1948. - New staff are required to take an oath of secrecy. - Guidelines on staff behavior and the ethical standards are published, with a copy available in each department for reference by the staff. ### Methodological soundness: concepts, scope, classification, and recording - Concepts and definitions - The analytical framework used by the RBI in compiling the central bank’s survey and the depository corporations survey is currently being adapted to the guidelines outlined in the IMF’s MFSM. - The monetary survey is derived by consolidating the accounts of the central bank, scheduled banks and cooperative banks. - Key aggregates identified in the monetary survey data are: net bank credit to the central government; credit to the state government; credit to the commercial sector (comprising the resident nongovernment nonbank sector—including public and private enterprises, households and nonprofit organizations, as well as nonbank financial institutions); net foreign assets; currency with the public; demand deposits; and time deposits of residents. - The division between foreign and domestic positions for new monetary aggregates is based on the statistical residency criterion, modified where necessary by the consideration of the center of economic interest. - Classification examples: - repatriable nonresident foreign currency deposits are classified as foreign liabilities; - nonrepatriable nonresident rupee deposits (the acceptance of which ceased on April 1, 2002) are classified as domestic liabilities (money supply); - repatriable nonresident rupee external deposits are classified as money supply. - Migration to MFSM has not yet been completed; projects undertaken include (1) introducing a detailed sectorization scheme to subdivide the commercial sector; and (2) broadening institutional coverage to deposit-taking nonbank financial institutions. Deposits of nonbank financial institutions have already been included in the broader liquidity measures. - Scope - The monetary survey covers the RBI, close to 300 scheduled banks, and over 2000 cooperative banks in India. - It includes the RBI headquarters as well its 20 branches, and the banks’ headquarters as well as their resident branches. - It does not yet include deposit-taking nonbank financial institutions, though broader measures of domestic liquidity including these deposits have been developed. - Classification/sectorization - The RBI’s monetary statistics are in the process of migrating to MFSM guidelines. - Current resident sector subdivision: (1) central government; (2) state government; and (3) the commercial sector (comprising the resident nongovernment nonbank sector—including public and private enterprises, households and nonprofit organizations, as well as nonbank financial institutions). Subdivision into public enterprises, nonbank financial institutions, and private sector is lacking. - Flow of funds accounts provide much of the sectoral detail missing from monetary accounts. - Classification of financial instruments broadly conforms to MFSM: (1) Monetary gold and Special Drawing Rights; (2) Currency and deposits; (3) Securities other than shares; (4) Loans; (5) Shares and other equity. Not identified separately: (6) Insurance technical reserves; (7) Financial derivatives; (8) Other accounts receivable/payable. - Financial derivatives activities by banks are treated as off-balance sheet items. - Securities repurchase agreements (repos) are recorded on a change-of-ownership basis, consistent with the RBI Act of 1934; data on securities involved in repos are separately available. - Basis for recording and valuation - Valuation principles broadly follow MFSM: market prices or market price equivalents are used; loans are valued at book values without adjustment for expected losses. - Specific practices: - financial assets traded regularly are valued using market price quotations; - monetary gold is valued at market prices, specifically at 90 percent of the monthly average level of the London closing price; - securities are valued at market prices; - loans are valued at current book value without adjustment for expected loan losses; - shares and other equity on the asset side are valued at market prices; on the liability side they are valued at historical, or book values; - valuation adjustments (including holding gains and losses) are presented in the revaluation account in appropriate sectoral balance sheets or aggregated presentations for the depository corporations sector. - Conversion of foreign-currency denominated assets and liabilities to domestic currency is carried out at prevailing market exchange rates using the end-period mid-point New York closing rate. - The RBI converts its foreign-currency denominated positions on a weekly basis; banks convert on a two-week basis. - Recording conventions - Financial transactions are recorded on an accrual basis in line with MFSM recommendations. - Commercial banks add interest to credit and deposit positions at the end of each quarter rather than accruing continuously during the accounting period. - Financial transactions are recorded simultaneously between parties. - Grossing/netting procedures conform to MFSM: - claims on a transactor are not netted against liabilities to that transactor; - provisions against loans are shown on a gross basis on the liability side, and loans are included in domestic credit on a gross basis on the asset side; - the monetary survey cancels out all financial flows and outstanding claims and liabilities between depository corporations while preserving claims on financial corporations subsectors other than depository corporations, other domestic sectors, and nonresidents. ### Accuracy and reliability: source data, techniques, validation, and revisions - Source data collection - Central bank source data: balance sheet data prepared by the RBI’s Department of Government and Bank Accounts on a weekly basis, generated by an electronic general ledger system based on complete recording. - Commercial banks source data: individual returns collected on a two-week basis; reporting format mostly submitted by electronic diskette to regional offices of the RBI’s Department of Banking Operations and Development, with a minority submitted on-line. - Reporting format generally provides sufficient detail to compile monetary statistics in conformity with MFSM, except for sectorization detail. - No use of supplementary data is involved for other depository corporations’ survey; the RBI uses its own records for banks’ deposits with and borrowing from the RBI. - Source data are kept under periodic reviews; RBI staff monitor financial press and research papers and hold periodic meetings with market participants and the business community to identify new developments. - Source data quality and timeliness - The monetary survey is based on complete reporting by scheduled banks and cooperative banks; returns reasonably approximate required definitions, scope, classifications, valuation, and time of recording. - The RBI balance sheet data are compiled on a weekly basis with a lag of only three working days (the balance sheet for Friday is finalized on the following Wednesday). - Commercial and cooperative banks report accounting data on a two-week basis with a lag of seven days. - The reporting timetable enables the monetary survey to be disseminated within 15 days. Delays due to untimely data submission by banks are rare. - Statistical techniques and procedures - Data compilation procedures minimize processing errors; the RBI’s report form is designed to encourage computer processing and computer programs process source data promptly. - No data adjustments and transformations are involved. - Assessment, validation, and reconciliation - The Department of Economic Analysis and Policy addresses queries on monetary data and uses these opportunities to monitor accuracy. - Source data are cross-checked against other RBI statistical systems: (1) basic data returns collected from banks’ branches through a combination of census and sampling methods; (2) monthly returns from banks to the Department of Bank Operations and Development; and (3) annual balance sheets of banks. Appropriate measures are taken when large discrepancies are found. - No secondary data sources such as financial market operations and sample surveys are used to check the accuracy of other depository corporations’ balance sheets. - The Department of Economic Analysis and Policy identifies statistical discrepancies and, in collaboration with the Department of Banking Operations and Development, investigates sources and resolves problems posed by large or unexplained fluctuations in monetary or credit aggregates. - Revision studies: RBI staff regularly undertake studies to investigate sources of errors, omissions and fluctuations and explain revision methods; findings are incorporated into subsequent data compilation. ### Serviceability: relevance, timeliness, periodicity, and consistency - Relevance and user needs - The RBI consults policy departments periodically and establishes working groups (RBI staff and outside experts) to ascertain users’ needs (examples: Report of the Working Group on Money Supply (June 1998) and Report of the National Statistical Commission). - RBI staff participate in international statistical meetings and seminars organized by BIS and the Bank of England. - No comprehensive user surveys of assistance to users have been carried out; the RBI Bulletin regularly disseminates a questionnaire to readers on its quality (not specifically related to monetary statistics). - Timeliness and periodicity - Central bank data are disseminated about one week after the end of the reference week: data for each Friday are finalized on the following Wednesday and disseminated on the following Saturday through the Weekly Statistical Supplement. - Two-week (provisional) data on other depository corporations are disseminated within 15 days after the reference date. - This timeliness compares favorably with the SDDS requirements: (1) monthly data on the central bank should be disseminated within two weeks; (2) monthly data on other depository corporations should be disseminated within one month. - Periodicity: central bank data are weekly; other depository corporations data are two-weekly (compared with monthly periodicity required under SDDS). - Internal and cross-dataset consistency - Monetary statistics are internally consistent; no discrepancy exists between central bank and other depository corporations data on interbank positions due to use of RBI records in compilation. - Additional internal consistency checks include analysis of flows to explain changes in stocks over time. - Monetary statistics are broadly consistent with flow of funds accounts; monetary data on credits to and deposits of banks are inputs for flow of funds accounts. Sectoral distribution for commercial banks in flow of funds is derived by applying sectoral ratios from basic statistical returns to aggregate data. - Statistics of the broader financial corporations sector are being developed by widening coverage to include nonbank financial institutions. - Time series consistency: consistent series are available for at least past five years; historical series are reconstructed for a minimum of five years when changes in source data, methodology, or techniques are introduced. Detailed methodological notes explain breaks and discontinuities. Unusual changes are explained in analytical text in the publication and database accessible to users. - Monetary statistics are consistent with other statistical systems: balance of payments statistics, the international investment position, and government finance statistics. Net foreign assets in monetary statistics are consistent with the corresponding measure from the international investment position; transactions in net foreign assets are consistent with balance of payments statistics, with remaining differences attributable to definitional differences. The central government uses RBI records on government deposits in, and government borrowing from, depository corporations in government finance statistics. *Source: _cr0496 - 1.3 Ethical standards (PDF); canonical URL provided in content metadata* ### 4.4 Revision policy and practice ### 4.4 Revision policy and practice ### 4.4.1 Revisions follow a regular, well-established and transparent schedule - Monetary statistics initially disseminated by the RBI are provisional because other depository corporations’ data are provisional; the central bank’s data are final. - The Department of Economic Analysis and Policy finalizes statistics after receiving final data from concerned departments. - Finalized monetary statistics for each two-week period are published only at the end of the quarter. - The revision policy follows a predictable pattern; users are informed through various RBI publications. - All key revisions are explained in the text or footnotes to data tables. ### 4.4.2 Preliminary data are clearly identified - Preliminary data are identified in all RBI publications. - Users are alerted that initially published data are preliminary and subject to revision. - Revised data are disseminated with the same level of detail as previously published for the data being revised. ### 4.4.3 Studies and analyses of revisions are made public - RBI staff regularly undertake studies to measure, assess, and explain sources of revisions made to the data. - Many studies take the form of internal publications; some are published in the RBI Bulletin. - Revisions tend to be small in magnitude. *Source: _cr0496 - 4.4 Revision policy and practice* ### 1.3 Ethical standards ### 1.3 Ethical standards ### Guidelines for staff behavior - The RBI Staff Regulations, 1948—which is updated over the years—set out the code of conduct for staff. - All staff are apprised of these regulations at the time they are recruited and are required to sign an oath of secrecy at the time of appointment. - Under the Staff Regulations, RBI staff are expressly prohibited from involvement in political activity. - The RBI’s authority would appear to provide sufficient protection against political interference. - The RBI indicates that its credibility is shown, at least as far as the balance of payments statistics are concerned, through the confidence that users place in the data. ### Key findings and implications - Staff conduct rules and secrecy oaths are institutionalized via the RBI Staff Regulations, 1948. - Explicit prohibition on political activity by staff supports perceived independence and data credibility. - User confidence is cited by the RBI as evidence of credibility for balance of payments statistics. --- ### 2. Methodological soundness ### Concepts and definitions - Concepts and definitions used to compile the balance of payments are broadly in line with BPM5. - All transactions between residents and nonresidents are in scope. - The overall presentational structure of the balance of payments does not follow BPM5, although most of the components are available to move to a BPM5 presentation. - The current account is presented as goods and invisibles (though the component parts—services, income and current transfers—are shown separately). - The RBI still uses the term capital account to refer to the financial account. There is no capital account, in BPM5 terminology. - The financial account is presented with a different breakdown from that in BPM5. ### Scope - The principle of residence is broadly in line with that in BPM5, based on the concept of center of economic interest. - When Indians work or live abroad for more than 6 months, they become classified as nonresidents; according to BPM5, they would need to be resident abroad for more than one year. ### Classification/sectorization — main deviations from BPM5 - Goods: All goods categories (general merchandise, goods for processing, repairs on goods, goods procured in port, and nonmonetary gold) are included under general merchandise rather than separated. - Services: Limited quarterly information on services; transportation services are not shown by means of transport; travel is not shown by purpose of traveler; insurance and freight on goods imports are inappropriately included with goods; communication services are not compiled on a gross basis. - Current and capital transfers: No capital account in BPM5 terminology; all capital transfers are included in current transfers. - Financial account: Estimates of direct investment exclude debt transactions; such transactions are included in “other capital” or “commercial borrowings.” “Commercial borrowings” may also include portfolio investment (such as floating rate notes). - The RBI intends to move a BPM5 presentation within the next one−two years. ### Basis for recording - Market prices are used to value flows and stocks for the most part. - Data are compiled in rupees and U.S. dollars. - All transactions are recorded at the mid-point exchange rate prevailing at the time of the transaction to convert them to rupees. - To derive estimates in US dollars, the aggregated data are converted using the average rupee: US dollar exchange rate for the month. - Reinvested earnings are derived as the first differences of balances outstanding and therefore include any revaluations or realized holding gains or losses. - Recording practice: For the most part, transactions are recorded on a payments (cash) basis. Interest income is recorded on an accruals basis. - Exports are recorded when they leave India (drawn from the data from the DGCIS), after allowing for certain timing and valuation adjustments. - Grossing/netting procedures: Most transactions in the current account are recorded on a gross basis and on a net basis in the financial account, separately for assets and liabilities, broadly in accordance with BPM5. --- ### 3. Accuracy and Reliability ### Source data — coverage and collection - The Indian balance of payments is primarily an international transactions reporting system, with ADs’ reports on foreign exchange transactions as the main source. - Additional sources include a survey of direct investors, DGCIS trade data, Ministry of Immigration traveler counts, National Association of Software Service Companies benchmarks, MOF data on government debits for government services, approvals data from the Ministry of Commerce and Industry for direct investment, ECD and Exim Bank information for corporate borrowings, custodians for portfolio investment, and reserve data from the RBI’s Department of External Investment and Operations. - Transactions below the $10,000 threshold are not reported in detail; a large representative sample of ADs report all such transactions in detail for four days every two weeks and these are prorated to provide a detailed breakdown. - Reinvested earnings: an annual survey of direct investment enterprises based on a quinquenniel census (last census in 1997). Because of reporting difficulties, there are no data in the balance of payments statistics on reinvested earnings since 1998−99. - Financial derivatives: no information was provided up to April 2002 because contracts with nonresidents were not permitted; ADs’ report forms will be modified following the change. - Reserve assets data are prepared weekly; transactions are provided separately from positions data. ### Timeliness and processing - ADs report every two weeks, with a lag of seven working days; data are delivered on diskette to regional branches and processed by the ECD and the Department of Statistical Analysis and Computer Services. - The RBI is encouraging ADs to report online once a secure method is accepted. - Aggregate merchandise trade data from DGCIS: received within one month; detailed data within three months. - The RBI reviews report forms periodically and undertakes extensive training of AD staff (and their trainers). ### Statistical techniques, adjustments, and validation - Data checks are in place to ensure consistency and to identify unusually high value transactions; follow up is undertaken with ADs as needed. - The AD report form is clear, well designed, and appropriate for computer processing; ADs input transaction information directly into their computer systems at the time of transactions. - No adjustment is made to goods imports to place them on an fob basis; imports are recorded on a cif basis in ADs’ reports. The RBI expects to place goods imports on an fob basis within the next two years. - As the system is considered sufficient to capture nearly all transactions between residents and nonresidents, no adjustment is made for undercoverage (except for reinvested earnings). - For travel, average expenditure estimates need revision to reflect changing weights; the Report of the National Statistical Commission recommended developing a more sophisticated model and the RBI has agreed. - The RBI reconciles DGCIS merchandise trade with ADs’ data; the Report of the Study Group on Merchandise Trade presents findings and both RBI and DGCIS intend to continue reconciliation work. - The RBI uses custodians’ information to capture transactions costs for portfolio investment; portfolio transactions are therefore recorded gross. - External debt data are checked against private sector borrowing and repayment data from ECD and ADs. - The ADs are identified from the register of licensed dealers maintained by the RBI. - The ECD undertakes annual audits of ADs’ branches with high volume and value foreign transactions. ### Assessment and validation procedures - Edit checks identify unusual movements; ADs are contacted for confirmation where needed. Thresholds for “high value” vary by component series and AD branch. - When foreign exchange transactions between resident banks are removed from ADs’ reports, the RBI ensures inter-bank credit entries approximate inter-bank debit entries. - Revisions incorporate all changes from available up-to-date information. - Balance of payments staff regularly review financial press and other sources to capture publicized transactions; the RBI recognizes the need to review additional information avenues beyond ADs as the economy integrates internationally and has adopted recommendations of the Report of the National Statistical Commission. --- *Source: _cr0496 - 1.3 Ethical standards* ### 3.4 Assessment and validation of intermediate data and statistical outputs ### 3.4 Assessment and validation of intermediate data and statistical outputs ### 3.4 Assessment and validation — practices and checks - Main intermediate data validation: - Direct investment data are compared with approvals data from the Ministry of Commerce and Industry. - Balance of payments staff review the financial press and maintain files of “economic intelligence” to ensure market developments are reflected in the data. - Validation against alternative sources: - Estimates on travel (Ministry of Immigration visitor counts × estimated average expenditure) are checked against ADs’ reports. - Creditor locational tables from the Bank for International Settlements are used as a check against external debt data, but are not considered sufficiently accurate to be a primary source. - Investigation of discrepancies and residuals: - Indian balance of payments data are largely drawn from a closed international transactions reporting system, but use of other sources produces minor net errors and omissions; these have remained relatively small. - RBI edit processes include monitoring residual categories; ADs are asked to investigate if residuals grow above a certain limit, keeping residual categories low. - Bilateral studies are not undertaken. ### 3.5 Revision studies and disclosure - Revision studies: - There have been no revision studies. - Explanations of large revisions are provided at the time of dissemination via footnotes on the RBI’s website and in the RBI Bulletin. *Source: _cr0496 - 3.4 Assessment and validation of intermediate data and statistical outputs* ### 4. Serviceability ### 4. Serviceability ### Serviceability framework and core definitions - "Statistics are relevant, timely, consistent, and follow a predictable revisions policy." - 4.1 Relevance — "Statistics cover relevant information on the subject field." - 4.2 Timeliness and periodicity — "Timeliness and periodicity follow internationally accepted dissemination standards." - 4.3 Consistency — "Statistics are consistent within the dataset, over time, and with major datasets." - 4.4 Revision policy and practice — "Data revisions follow a regular and publicized procedure." ### Serviceability indicators - 4.1.1 "The relevance and practical utility of existing statistics in meeting users’ needs are monitored." - 4.2.1 "Timeliness follows dissemination standards." - 4.2.2 "Periodicity follows dissemination standards." - 4.3.1 "Statistics are consistent within the dataset (e.g., accounting identities observed)." - 4.3.2 "Statistics are consistent or reconcilable over a reasonable period of time." - 4.3.3 "Statistics are consistent or reconcilable with those obtained through other data sources and/or statistical frameworks." - 4.4.1 "Revisions follow a regular, well-established and transparent schedule." - 4.4.2 "Preliminary data are clearly identified." - 4.4.3 "Studies and analyses of revisions are made public." ### Key messages on serviceability (from framework text) - Serviceability encompasses relevance, timeliness/periodicity, consistency, and revision policy/practice. - Each element is decomposed into specific, observable indicators intended to ensure statistics meet user needs and follow transparent, predictable procedures. --- ### 5. Accessibility ### Accessibility framework and core definitions - "Data and metadata are easily available and assistance to users is adequate." - 5.1 Data accessibility — "Statistics are presented in a clear and understandable manner, forms of dissemination are adequate, and statistics are made available on an impartial basis." - 5.2 Metadata accessibility — "Up-to-date and pertinent metadata are made available." - 5.3 Assistance to users — "Prompt and knowledgeable support service is available." ### Accessibility indicators - 5.1.1 "Statistics are presented in a way that facilitates proper interpretation and meaningful comparisons (layout and clarity of text, tables, and charts)." - 5.1.2 "Dissemination media and formats are adequate." - 5.1.3 "Statistics are released on the pre-announced schedule." - 5.1.4 "Statistics are made available to all users at the same time." - 5.1.5 "Non-published (non-confidential) subaggregates are made available upon request." - 5.2.1 "Documentation on concepts, scope, classifications, basis of recording, data sources, and statistical techniques is available, and differences from internationally accepted standards, guidelines or good practices are annotated." - 5.2.2 "Levels of detail are adapted to the needs of the intended audience." - 5.3.1 "Contact person for each subject field is publicized." - 5.3.2 "Catalogues of publications, documents, and other services, including information on any charges, are widely available." ### Key messages on accessibility (from framework text) - Accessibility requires clear presentation, adequate dissemination media, pre-announced release schedules, impartial simultaneous release, available metadata documenting deviations from standards, and publicized user assistance and catalogues. --- ### India: Serviceability and Accessibility — Summary findings from DQAF assessments (selected datasets) - General notation: Key to symbols: NA = Not Applicable; O = Practice Observed; LO = Practice Largely Observed; LNO = Practice Largely Not Observed; NO = Practice Not Observed; SDDS = Complies with SDDS. National Accounts Statistics (Compiling Agency: Central Statistics Organisation) - 4.1 Relevance: Largely Observed (symbol: X) — entry: "Relevance" marked with X. - 4.2 Timeliness and periodicity: Largely Observed (symbol: X). - 4.3 Consistency: Largely Observed (symbol: X). - 4.4 Revision policy and practice: Largely Not Observed (symbol: X) — comment: "Last major revision did not follow the preset schedule. Preliminary data are not always identified as such." - Accessibility notes: - 5.1 Data accessibility: Largely Observed (symbol: X) — comment: "Press releases of quarterly accounts do not show all data that have been revised. The availability of unpublished detail is not widely publicized." - 5.2 Metadata accessibility: Largely Not Observed (symbol: X) — comment: "Extensive documentation on concepts and methods is difficult to obtain. No short introductions on the national accounts." - 5.3 Assistance to users: Largely Not Observed (symbol: X) — comment: "Information on how to obtain user assistance is incomplete." Consumer Price Index for Industrial Workers (Compiling Agency: Labour Bureau) - 4.1 Relevance: Largely Observed (symbol: X). - 4.2 Timeliness and periodicity: Largely Observed (symbol: X). - 4.3 Consistency: Largely Observed (symbol: X). - 4.4 Revision policy and practice: Largely Not Observed (symbol: X) — comment: "No well-established schedule to revise the index weights." - Accessibility notes: - 5.1 Data accessibility: Largely Observed (symbol: X). - 5.2 Metadata accessibility: Largely Observed (symbol: X). - 5.3 Assistance to users: Largely Observed (symbol: X). Wholesale Price Index (Compiling Agency: Office of the Economic Adviser) - 4.1 Relevance: Largely Observed (symbol: X). - 4.2 Timeliness and periodicity: Largely Observed (symbol: X). - 4.3 Consistency: Largely Observed (symbol: X). - 4.4 Revision policy and practice: Largely Observed (symbol: X). - Accessibility notes: - 5.1 Data accessibility: Largely Observed (symbol: X). - 5.2 Metadata accessibility: Largely Not Observed (symbol: X) — comment: "Insufficient methodological documentation for technical users." - 5.3 Assistance to users: Largely Not Observed (symbol: X) — comment: "No contact for user assistance in press release." Government Finance Statistics (Compiling Agencies: Ministry of Finance and Reserve Bank of India) - 4.1 Relevance: Largely Not Observed (symbol: X) — comment: "No feedback from users has been routinely sought." - 4.2 Timeliness and periodicity: Largely Not Observed (symbol: X) — comment: "Timeliness of data on general government operations does not meet SDDS requirement." - 4.3 Consistency: Largely Observed (symbol: X). - 4.4 Revision policy and practice: Largely Not Observed (symbol: X) — comment: "No documents of studies or analyses of revisions for possible bias, etc. are available." - Accessibility notes: - 5.1 Data accessibility: Largely Not Observed (symbol: X) — comment: "The availability of unpublished detail is not publicized." - 5.2 Metadata accessibility: Not Observed (symbol: X) — comment: "Additional information in disseminated reports is necessary for general users of statistics to understand the data. National reports do not identify differences from international standards. Bridge tables linking source data and GFS are not documented or made available." - 5.3 Assistance to users: Largely Not Observed (symbol: X) — comment: "No catalogue of MOF publications, or complete listing elsewhere, is provided." Monetary Statistics (Compiling Agency: Depository Corporations) - 4.1 Relevance: Largely Not Observed (symbol: X) — comment: "Comprehensive user surveys are not conducted." - 4.2 Timeliness and periodicity: Largely Observed (symbol: X). - 4.3 Consistency: Largely Observed (symbol: X). - 4.4 Revision policy and practice: Largely Observed (symbol: X). - Accessibility notes: - 5.1 Data accessibility: Largely Observed (symbol: X). - 5.2 Metadata accessibility: Largely Observed (symbol: X). - 5.3 Assistance to users: Largely Observed (symbol: X). Balance of Payments Statistics (Compiling Agency: Reserve Bank of India) - 4.1 Relevance: Largely Not Observed (symbol: X) — comment: "No comprehensive user surveys are conducted . No detailed quarterly data on services" - 4.2 Timeliness and periodicity: Largely Observed (symbol: X). - 4.3 Consistency: Largely Observed (symbol: X). - 4.4 Revision policy and practice: Largely Observed (symbol: X). --- *Source: _cr0496 - 4. Serviceability* ### 5. Accessibility 5.1 Data accessibility ### 5. Accessibility — 5.1 Data accessibility ### 5.1 Data accessibility and related checklist items - Data accessibility: X - 5.2 Metadata accessibility: X - 5.3 Assistance to users: X ### Metadata accessibility (text) - The current document on concepts, sources, and methods is out of date. Only one level of metadata is published ### Assistance to users (text) - X ### Results of India’s User Survey — Summary of Results - A questionnaire was sent to 56 users among the academic and research community, banks and businesses, foreign embassies and international agencies, credit rating agencies, and government agencies. - Responses received: 23 - including six from researchers, six from banks and businesses, five from the international community, four from credit rating agencies, and one from a government agency - Follow-up discussions were held with a range of users. - Overall impression: respondents’ views were mixed, but on the whole they rated the official statistics as being of quite good quality. - Average ratings on a scale of 1 to 5 (5 = “excellent”, 1 = “poor”) for five categories of statistics (with highest and lowest individual ratings in parentheses): - monetary statistics 4.3 (5, 3.5) - balance of payments statistics 3.8 (5, 3) - prices 3.5 (5, 2) - government finance statistics 3.2 (5, 1) - national accounts 2.8 (5, 1) - Major interpretations from respondents: - Majority considered methodologies of monetary, balance of payments, prices, and government finance to be sound and those statistics unbiased and accurate. - Only a minority considered national accounts statistics accurate. - Respondents were more satisfied with level of detail provided than with coverage, and with frequency of compilation rather than timeliness. - Monetary, balance of payments, and prices statistics were rated more highly than government finance and national accounts on the four matters above, although balance of payments ratings were lower on timeliness. - Only a minority considered that enough information was provided about revisions to the national accounts. - Most respondents stated official data could be readily accessed, but there were concerns about ease of access to explanatory notes, methodological descriptions, references concerning concepts definitions, and statistics practice. - Metadata of government finance and national accounts were perceived as less readily accessible than metadata of other categories. ### Comments of Respondents in User Survey — Key points and recommendations - Coverage and timeliness of official macroeconomic statistics has improved markedly in recent years. - Need for greater sensitivity to changing structure of the economy: - better coverage of services - more frequent reconstruction of price and production indexes - Weaknesses identified: - official statistics weak for the unorganized sector, industrial statistics, and the corporate sector - lack of an overall consumer price index - GDP deflator comes too late - services sector inflation indicator needed - coverage often adequate but accuracy problems undermine inferences - Fiscal statistics improvements needed: - better data on general government side and overall public sector position (including state enterprises) - RBI publishes estimates of the general government fiscal balance but not a clear enough breakdown of revenue and expenditure items used to derive this balance - more transparency in data on the states’ fiscal position - monthly central government fiscal data miss important items such as gross tax collections for the month - coverage too narrow and excludes off-budget activities like the former Oil Pool fund - Price and CPI detail: - request for better disaggregation of CPI data (e.g., into goods, energy, and services; or items such as personal computers and cars) - Balance of payments and external data: - capture more detailed service categories - recent balance of payments data have large “errors and omissions” items - more detail required on foreign direct investment - greater detail on external debt would be helpful; MOF’s external debt data are useful but not timely - some countries publish external and domestic debt positions quarterly; India could follow this practice - Indicators and timeliness: - lack of current indicators of activity such as capital expenditure, inventory accumulation, or housing - timeliness of publication of national accounts and balance of payments should be further improved - WPI data are timely, but coverage (quotations) is unclear and gap between provisional and final figure is too wide - Revisions and transparency: - number of revisions should be reduced and placed on a predictable cycle - information pertaining to revisions is almost never provided; significantly large revisions are never flagged - revisions of price indexes are little explained - explanations about revisions are often inadequate (example: recent revision of GDP data on the financial sector) - credibility of GDP data is affected by frequent and large revisions - difficult to access back data after revisions - Accessibility and user support: - accessibility is good for annual data due to the RBI Handbook and the Economic Survey; more frequent data on fiscal and balance of payments variables would be desirable - access to data should be made easier - improved internet presentations desired, including direct spreadsheet formats - there should be a cell or contact officer in the CSO to assist users with technical inquiries (e.g., reasons for revisions) and access to unpublished data - information on conceptual issues, data sources, estimation methods, and data limitations should be published along with the dataset - better presentations of explanations and qualifications are required - Sources and methods documentation: - sources and methods publication for the national accounts is too outdated (it relates to 1989) and is frequently out of print - most official descriptions of sources and methods need to be updated - methodology for services items in national accounts is unclear - national accounts based on too many outdated parameters/ratios - classification system for government finance statistics is inappropriate for economic analysis - tax data are poor - weights of the price indexes are out of date - unclear divergence between RBI and DGCIS data on imports; some reconciliation needed - Institutional and credibility issues: - Indian statistical system has a high degree of integrity (several comments) - concerns that there appears to be pressure to hide bad news by stretching definitions and using methodological tricks - timing of revisions before important policy events raises issues of statistical credibility - accountability/responsibility for statistics is at present spread too wide for any one agency to have real control; question raised: What quality controls can central statistical agencies apply on state agencies? - Long-term issue: - a serious long term issue is the inordinate delay in implementing the recommendations of the National Statistical Commission *Source: _cr0496 - 5. Accessibility 5.1 Data accessibility* --- _Source: https://www.imf.org/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/scr/2004/_cr0496.pdf_