CBS to revise GDP basket in 2019The Central Bureau of Statistics (CBS), the official government agency that collects, processes, analyses and disseminates data, will add new goods and services to the basket that is used for calculation of the gross domestic product (GDP) in 2019.
The Central Bureau of Statistics (CBS), the official government agency that collects, processes, analyses and disseminates data, will add new goods and services to the basket that is used for calculation of the gross domestic product (GDP) in 2019.
The revision will reflect changes in economic activities taking place in the
country and capture areas, such as the information technology (IT), which have not been covered by the national accounts.
After updating the GDP basket, the CBS will change the base year for calculation of national accounts to 2010-11 from 2000-01.
“If things go as planned, we will introduce the revised GDP basket in 2019. This means the national accounts for fiscal year 2018-19 will capture new goods and services that are not currently used in calculation of the GDP,” said CBS Director General Suman Raj Aryal.
The revision of the GDP basket generally gives a boost to economic output because of inclusion of new economic activities. India, for instance, had revised its base year for GDP calculation to 2011-12 in January 2015, following which its economic output had gone up.
The CBS first launched national accounts figures in 1961-62. It has been producing these data on an annual basis since 1964-65.
The CBS has been revising the base year for calculation of national accounts every 10 years. Many developed countries revise the GDP base year every five years.
The CBS has currently divided the economy into three broad sectors: agriculture, industry and services. The agricultural sector makes a contribution of around 30 percent to the GDP.
The industrial sector makes a contribution of around 14 percent to the economy and the services sector makes the biggest contribution of around 56 percent to the GDP.
These three broad sectors have further been divided into 15 categories, namely, agriculture and forestry; fishing; mining and quarrying; manufacturing; electricity gas and water; construction; and wholesale and retail trade.
Also, hotels and restaurants; transport, storage and communications; financial intermediation; real estate, renting and business activities; public administration and defence; education; health and social work; and other community, social and personal service activities make a big contribution to the economy.
The CBS had initiated the process of revising the national accounts base year to 2010-11 in 2015. But the devastating earthquakes of April and May 2015 prevented the CBS from revising the benchmark data.
Since then, the CBS has conducted around 35 surveys to include economic activities that have not been covered by current national accounts.