New Delhi, Sept. 1 (PTI): Admitting its faus pax within a day, the government today revised economic growth at market prices to 10.02 per cent for the quarter ended June 2010 from 3.65 per cent stated earlier.

Issuing a corrigendum to its figure announced yesterday, the ministry of statistics and programme implementation (Mospi) attributed the mistake to the wrong calculation of deflators. Deflators, which convert GDP (gross domestic product) data at current prices to constant prices, are used for factoring in inflation.

Real GDP (excluding inflation) at market prices (what consumers pay) for the April-June quarter now stands at Rs 12,09,888 crore from the earlier estimated figure of Rs 11,39,867 crore.

Mospi said economic growth, traditionally estimated as real GDP at factor cost (what producers get), was estimated correctly yesterday at 8.8 per cent in the first quarter of the fiscal.

“Inadvertently there has been use of inappropriate deflators in converting quarterly estimate of expenditure of GDP at market prices in the first quarter of 2010-11 (at current prices) to quarterly estimates of expenditure of GDP at market prices in the first quarter of 2010-11 (at 2004-05 prices),” the ministry said.

The wide difference of over 5 per cent between real GDP growth at market prices (3.65 per cent) and factor cost (8.8 per cent) had caused confusion. Officials said the difference between the growth rate of GDP from the two methodologies generally ranges between 2 per cent and 3 per cent.

Earlier in the day, finance minister Pranab Mukherjee said in Mumbai, “Criticism has been made about the projection from the demand side that it is not matching with the growth that has been projected and that will have to be addressed.”

GDP at market prices estimate the figures from expenditure, or demand side, while GDP at factor cost estimates the numbers from production, or supply side.

The difference between the two is that GDP at market prices includes indirect taxes, while GDP at factor cost excludes them.