Amid ongoing debate over demonetization impact on the economy, the Chief Statistician of the government, TCA Anant has said that effects of demonetization will be clearer towards end of the current fiscal after data from the government and company accounts come in. He also mentioned that the short term figures could not assess these impacts and as statistician, he will need to see the trajectories and work out the analysis.
Anant further said that even if the move has affected the economy at multiple levels, it should not be seen just from the perspective of cash replacement as it has also benefited in many ways to the country and added that the note ban has improved digital transactions and tax collection. He noted that the overall trajectory of growth post-November to pre-November has seen a distinct structural break.
On the upcoming Goods and Services Tax (GST) regime, Anant said that it would improve the quality of the statistical data as it would plug leakages in the sales tax regime and so improvement in quality of measurement along with the linkage with informal activity will actually make GDP compilation better.