Bridging the Data Gap

India’s public sector compensation system is characterised by fragmented reporting, incomplete coverage, and inconsistent classification, which leads to a systematic understatement of fiscal commitments. Addressing these gaps is essential for fiscal sustainability, intergovernmental equity, and statistical accuracy for sound policy planning. Definitions of both the public sector and compensation differ widely across institutions, limiting comparability and weakening fiscal analysis. As a result, official statistics systematically understate compensation bills. This report highlights critical reporting data gaps in government accounts and estimates a more accurate fiscal cost of public sector employment.