National Accounts

The ways and means advances, is an indicator that is often not studied but can help offer a critical view of the management of government finances at the state and central levels. The paper points to mismatches in data, the formula-based WMA limits placed on states versus the arbitrary nature of advances to the centre, and how and why the system may work against the spirit of cooperative federalism and further feed inefficiency in government financial management on a day-to-day basis. It offers a model scheme for the fixation of limits of WMA based on total expenditure minus fiscal deficit and calls on the government to publish the WMA data along with the overdrafts on a daily basis.

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Indian Official Statistics

Vol. 53, Issue No. 26-27, 30 Jun, 2018

R B Barman

Official statistics is a public good that informs, supports, and sustains democracy and advances socio-economic development. The Indian statistical system is analysed and methods for modernising it are suggested by using information and communications technology to improve the quality, credibility, coherence, and timeliness of data. An integrated, decentralised information system populated with granular data will enable data to be carried flexibly wherever required, queried, and analysed in business contexts at all levels of governance for a deeper insight. Such a system will help the government to inform stakeholders about the economy and honour our commitments to the United Nations resolution of 2014.

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Capital Formation in Indian Agriculture

Vol. 36, Issue No. 20, 19 May, 2001

Ashok Gulati, Seema Bathla

Is capital formation in Indian agriculture really declining? How and to what extent has it affected growth in agriculture? These questions have been at the centre stage of a debate sparked off in the late 1980s. This paper re-visits this debate by dissecting different components of capital formation, by digging into the very concept and estimation procedures followed in the Indian system of National Accounts vis-à-vis the UN system. The study, after re-defining and re-estimating trends in capital formation in agriculture, concludes that the situation is definitely not good, but not as alarming as is sometimes made out to be. This is because of the increasing share and role of private sector investments in agriculture over time. And the trend in that has remained robust despite decline in public sector capital formation in agriculture, and despite the fact that public sector investment has an inducement effect on private sector capital formation. This only goes to suggest that private sector investment in agriculture has been increasingly influenced by other factors, especially the terms of trade. And this has implications for the structure of growth within agriculture.