Multiple choice

In 2010, the government decided to change the base year for calculating national income. Which of the following statements are correct?

I. The base year will be changed from 1999-2000 to 2004-05. II. Change in base year will lead to a higher GDP. III. Change in base year will lead to a lower fiscal deficit.

  1. I only

  2. I and II only

  3. II and III only

  4. III and I only

  5. I, II and III
Reveal answer Fill a bubble to check yourself
E Correct answer
Explanation

Fiscal deficit will come down to 6.41 per cent against the estimated 6.8 per cent, as GDP would be larger in the new series for calculating national income, Chief Statistician Pronab Sen informed media on February 3, 2010. In January 2010, the Government released a new series for calculating national income by changing the base year from 1999-2000 to 2004-05.

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