The methodology of recording the National Accounts has been revised in line with the requirements of...........

Indian Economy (CDS) Planning in India

The methodology of recording the National Accounts has been revised in line with the requirements of the internationally accepted System of National Accounts (SNA)-2008 by the Central Statistics Office (CSO). In this context, consider the following statements regarding System of National Accounts, 2008:

1. The SNA-2008 accounting standard is produced and released under the aegis of the United Nations.

2. It is mandatory for all nations to adopt SNA-2008 as the method of National Income Accounting.

Which of the statements given above is/are correct?

1 only

2 only

Both 1 and 2

Neither 1 nor 2

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Explanation:

? The Central Statistics Office (CSO), in January 2015, released the new and revised data of National Accounts, effecting two changes : ? The Base year was revised from 2004-05 to 2011-12. This was done in accordance with the National Statistical Commission.

? The Methodology of calculating National Accounts has also been revised in line with the requirements of the System of National Accounts (SNA)-2008. ? It has been produced and is released under the auspices of the United Nations, the European Commission, the Organisation for Economic Co-operation and Development, the International Monetary Fund, and the World Bank Group (Inter-Secretariat Working Group on National Accounts) Hence statement 1 is correct. ? The adoption of SNA-2008 is completely voluntary for the member nations however, it is highly advised in order to produce highly accurate data. Hence statement 2 is not correct. ? Major changes incorporated through SNA 2008 include ? i) Headline growth rate to be measured by GDP at constant market price. ? ii) Sector-wise GVA (Gross Value Added) will now be given basic prices instead of factor cost. ? iii) Comprehensive coverage of the corporate sector both in manufacturing and services by incorporation of annual accounts of companies as filed by the Ministry of Corporate Affairs (MCA) under their e-governance initiative, MCA 21. ? iv) Comprehensive coverage of the financial sector. ? v) Improved coverage of activities of local bodies and autonomous institutions.