Ans. The statistical data serve as the foundation for the government and policymakers to develop policies. The statistical data not only assist them in analysing and evaluating the outcomes of previous policies, but also in taking corrective measures and formulating new policies. Statistical data also assists the government in determining the relationship between economic variables and developing appropriate policies.
For example, if the Indian government wants to increase national output, it will base its investment policy on the capital-output ratio over the last few years. Another example is the formulation of monetary policy. Previous data on inflation and economic growth are used to estimate the required money supply for the next period.