Some states, including West Bengal and UP, have underestimated economic performance in their revised estimates, SBI economists said in a report.
If the revised estimates of the states were collected, the national GDP would have fallen to 3% on a nominal basis, contrary to the estimates of the National Statistics Office (NSO) contraction. Economists said, “The state may have to undergo an amendment to the GSDP number.”
To validate the states ‘estimate of GSDP for this fiscal, economists created their own projection based on the simulation of the past few years’ performances.
For some states, there was a significant difference between the economist’s estimates and the revised estimates by these states for FY21, as is the case with “West Bengal, Uttar Pradesh, Madhya Pradesh, Karnataka and Tamil Nadu”.
Although these states showed a clear picture on GSDP, “the same is not reflected in tax collections,” he said in the report.
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