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ESTIMATES OF DISTRICT / TALUK DOMESTIC PRODUCT A ND ITS USE Directorate of Economics and Statistics Bangalore Karnataka 1.

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Presentation on theme: "ESTIMATES OF DISTRICT / TALUK DOMESTIC PRODUCT A ND ITS USE Directorate of Economics and Statistics Bangalore Karnataka 1."— Presentation transcript:

1 ESTIMATES OF DISTRICT / TALUK DOMESTIC PRODUCT A ND ITS USE Directorate of Economics and Statistics Bangalore Karnataka 1

2 2 Domestic Product is “aggregate economic value of all the goods and services produced within the geographical boundaries, counted without duplication during a specific period of time”. Definition

3 3 Importance and Need  Measure the growth in the economy  To build the Human Development Indices  In assessing the relative contribution of different sectors of the economy to the INCOME of the State/District/Taluk and  To Know the nature and extent of Inter-sectoral and inter-regional imbalances in the economy

4 S COPE AND C OVERAGE SDP / DDP excludes: o Defence personnel and other para-military forces o Govt. offices abroad o Foreign offices of LIC & GIC o Bombay Offshore o Deep sea fishing 4

5 5 Concept  INCOME ORIGINATING concept is being adopted in the State  Sum total of the economic value of goods and services produced in the region.

6 6 Division of Economy into Sectors  Economy of the State is broadly classified into sectors in two ways Sl. No III 1 Primary Sector Agriculture (including Livestock), Forestry, Fishing and Mining & quarrying Agriculture Sector Agriculture (including Livestock), Forestry and Fishing 2 Secondary Sector Manufacturing (Regd. & Unregd.), Construction and Electricity, Gas & Water Supply Industry Sector Mining & quarrying, Manufacturing (Regd. & Unregd.), Construction and Electricity, Gas & Water Supply 3 Tertiary Sector Railways, Transport by other means, Storage, Communication, Trade Hotels & Restaurants, Banking & Insurance, Real Estate, Ownership of dwellings, Legal & Business Services and Other Services Service Sector Railways, Transport by other means, Storage, Communication, Trade Hotels & Restaurants, Banking & Insurance, Real Estate, Ownership of dwellings, Legal & Business Services and Other Services.

7 7 Methods of Estimation  Income is estimated in three ways Sl. No ApproachSector 1Production Approach Agriculture, Livestock, Forestry (Major and Minor forest products), Fishing, Mining and Quarrying and Manufacturing (registered) sectors. 2Income Approach Manufacturing (Unregistered), Electricity, Gas and Water supply, Transport, Storage and Communication, Trade, Hotels and Restaurants, Banking and Insurance, Real Estate and Business Services, Public Administration and Other Services. 3Expenditure Approach Construction sector and Forestry (fuel wood consumption)

8 8 Methods of Estimation  Income can be estimated in three ways.  PRODUCTION method envisages evaluation of all goods and services produced within the region during a period of time. From value of production, cost of Raw materials, Fuel etc., are to be deducted. o Gross Value Added (GVA) = Value of Output (GVO) – Value of Input o Agriculture (including horticulture and livestock), Forestry, Fisheries, Mining and Quarrying and Registered Manufacturing

9 9 Methods of Estimation  In INCOME (Distribution) method, aggregate income is distributed among the four factors of production viz., Land, Labour, Capital & Enterprise. These Factors of production fetches Rent, Wages, Interest & Profit o GVA (Public) = Aggregate of factor incomes (Compensation of Employees (CE) +Interest + Rent + Profits + Dividends) - Consumption of Fixed Capital o GVA (Private) = Workforce X Value Added per Worker o CE = Salaries + Pension + PF + Welfare Expenses o all other sectors

10 10 Methods of Estimation  EXPENDITURE (Consumption) method is based on the measurement of Income at the stage of disposal. o GVA = Gross Value of Output X (GVA/GVO) ratios o Construction sector  At present all the three methods are followed to compute Gross State Domestic Product.

11 11 Treatment of Prices  Income obtained by evaluating the current year’s product at current year’s prices is termed as INCOME AT CURRENT PRICES  Income obtained by evaluating the current year’s product at some single base year prices is termed as INCOME AT CONSTANT PRICES  Income at CONSTANT prices reflects the real growth in the economy

12 12 Financial Intermediation Services Indirectly Measured (FISIM)  Termed as Imputed Bank Charges (IBC)  Is allocated to user industries like Agriculture, Livestock, Mining and Quarrying, Regd. Manufacturing, Un-regd. Manufacturing, Construction, Electricity, Gas & Water Supply, Transport, Storage, Trade, Hotels & Restaurants, Business Services and Other Services  This FISIM is deducted to arrive GSDP

13 13 Consumption of Fixed Capital (CFC)  Termed as Depreciation  It is that part of Gross Product which is required to replace the fixed capital used up in process of production during the period of account  This flow is based on the concept of the expected economic life of the individual assets  Covers the expected loss in value terms due to obsolescence as well as normal wear and tear

14 14 Measures relating to Income  By deducting consumption of fixed capital (depreciation) from GSDP we get NET STATE DOMESTIC PRODUCT (NSDP) GSDP – Consumption of Fixed Capital (CFC) = NSDP  Per Capita Income is derived by dividing the NSDP at current prices with mid year projected population (as on 1 st October)

15 15 Base Years or Constant Prices  When GDP is measured for an accounting year it is measured at current prices  When its value is compared over years, it is affected by not only the changes in production but also by the changes in prices  Therefore, it is necessary to eliminate the effect of prices, which is done by calculating the value of GDP at given prices of a particular base year  The GDP thus obtained is at constant prices. This gives a measure of the growth of the economy

16 16 Previous Base Years  Current Series Base Year (2010)  Previous series base years (1956) (1967) (1978) (1988) (1999) (2006)  Choice of base years Previously population census years Currently, the NSS employment-unemployment survey years

17 o First District Income Estimates of the State was prepared in the late seventies at DES for the year at Current Prices. o Subsequently for the years , and during Eighties At Current Prices o From and onwards district income were prepared both at Current and Constant Prices o In series the year wise and district wise DDP estimates were prepared and submitted to CSO o Recently, DDP estimates from to in Series were sent to CSO 17 District Domestic Product

18 o On the recommendations of Second Regional Conference on Statistical Matters, the Government of Karnataka and Uttar Pradesh jointly prepared a draft methodology for compiling the estimates of District Domestic Product and submitted the report to CSO in August, o This draft methodology prepared jointly by the Governments of Karnataka and Uttar Pradesh was circulated among State Directorates of Economics & Statistics for their comments in order to prepare a standard methodology for compiling the DDP estimates and implement the system of District Domestic Product in States. o For State Human Development Reports o 1 st released in 1999 and o 2nd released in 2005 o District income estimates were provided by DES 18 District Domestic Product

19 S ECTOR WISE C ONTRIBUTION OF S TATE I NCOME State’s Per capita Income for – Rs. 51,386 Highest District Per capita Income – Rs. 1,37,716 (Bangalore Urban) 2 nd Highest District Per capita Income – Rs. 84,153 (Bangalore Rural) Lowest District Per capita Income – Rs. 24,796 (Bidar) Sector wise Contribution of State Income (%) 19 Sectors Primary Secondary Tertiary Total100 Per Capita

20 o An attempt has been made to prepare Taluk level income estimates of the districts of Dakshina Kannada & Tumkur for the year both at Current/Constant ( ) Prices. o Subsequently for the purpose of preparation of District Human Development reports of Bijapur, Gulburga and Mysore, taluk income estimates for the years and at Current/Constant ( ) Prices were prepared by DES. o Technical guidance has been provided by DES for preparation of taluk income estimates to Udupi district. 20 District Domestic Product (Taluk wise)

21 E STIMATES OF D ISTRICT D OMESTIC P RODUCT ( TALUK WISE ) o Karnataka is the first state in India to attempt to compute taluk wise domestic product estimates under KSSSP. o At present, we have estimates up to the district level o Taluk level estimates brings light on intra district variation in economic development o This helps to set priority in formulating development plans depending upon its level of backwardness o Helps to calculate Human Development Index 21

22 Estimating the Domestic Product at District level by the Zilla Panchayats (ZPs) is one of the milestones to be achieved under District Domestic Product activity in Karnataka State Strategic Statistical Plan Zilla Panchayaths (ZP) are the nodal agency responsible to prepare these estimates at District level. Chief Planning Officers (CPO) are nodal officers. In this regard, two consultants are being provided to the ZPs to work on this along with Consumer Price Index (Urban / Rural) and Contribution of Local Bodies. State Income unit of the DES is nodal agency in achieving this milestone. 22 E STIMATES OF D ISTRICT D OMESTIC P RODUCT ( TALUK WISE )

23  The first meeting of all CPOs has been held on E STIMATES OF D ISTRICT D OMESTIC P RODUCT ( TALUK WISE )

24  Meeting with CSO officers on finalisation of the methodology to prepare Taluk income at Bangalore was held on E STIMATES OF D ISTRICT D OMESTIC P RODUCT ( TALUK WISE )

25  After the meeting with CSO officials, District wise training programmes to all the departments were organised and the importance and formats were explained. 25 E STIMATES OF D ISTRICT D OMESTIC P RODUCT ( TALUK WISE )

26  Two days hands on training to the consultants were organised in 4 phases between 7 th September, 2011 and 24 th September, All the consultants were trained about the methodology and formats for computation of Taluk income. 26 E STIMATES OF D ISTRICT D OMESTIC P RODUCT ( TALUK WISE )

27 M ETHODOLOGY ADOPTED FOR COMPUTATION OF TALUK DOMESTIC PRODUCT The methodology used is more or less similar to State Estimates. Below State level, the required basic data are not available for all the sectors. In respect of Primary Sector (Agriculture, Forestry, Fishing and Mining), the basic data is fairly available. Wherever the district/ taluk wise basic data are not available, district level estimates will be provided to ZPs by DES. Then ZPs have to workout taluk level estimates with available workforce provided by Employment and Training Department or suitable/relevant indicators. 27

28 P RESENT METHODOLOGY - A GRICULTURE Production Approach is followed Total 103 Crops are covered 1. Cereals (8), 2. Pulses (6), 3. Oil seeds (11), 4. Sugarcane (3), 5. Fiber (3), 6. Drugs and Narcotics (5), 7. Condiments & Spices (9), 8.Horticulture Crops (27), 9.Floriculture Crops (3), 10. Miscellaneous Crops (5) and 11.By products (20) Source of the Data : Fully Revised Estimates of Production (DES), Horticulture Department, Sugar Directorate and Boards for production and for prices APMCs, Boards and Prices section of DES 28

29 P RESENT METHODOLOGY - L IVESTOCK Total 37 Items of livestock are covered 1. Milk (1), 2. Meat (9), 3. Meat products (4) 4. Meat By-products (12) 5. Egg (1), 6. Wool & Hair (4), 7. Dung (2) 8. Other Products (3) and 9. Increment in Stock Source of the Data : Production and prices are collected from Livestock Census and Integrated Sample Surveys of Animal Husbandry Department Value of Output (GVO) = Production X Prices 29

30 A GRICULTURE AND L IVESTOCK GVO = GVO of Agriculture + GVO of Livestock Value of Inputs are ◦ 1. Seed, 2. Organic Manure, 3. Chemical Fertilisers, ◦ 4. Repairs & Maintenance, 5. Feed of Livestock, ◦ 6. Irrigation Charges, 7. Market Charges, 8. Electricity, ◦ 9. Pesticides and Insecticides and 10. Diesel Oil GVA = GVO – Value of Input In addition the GVA from Govt. Irrigation System is added. This will be obtained by analysing the budget documents 30

31 31 Sl. No. Sector/ Sub sectorDDPTDP 2Forestry District wise production and value of major and minor forest produces from state forest department and percapita firewood consumption from NSS survey Taluk wise production and value of major and minor forest produces are collected from the DFO. If the data not available and not tallying with the state figures the District GVO will be allocated to taluks in proportion to the taluk area and the firewood GVO in proportion to the taluk wise popultion 3Fishing District wise fish production and values are collected from state dept. Taluk wise fish production and value was collected from District fisheries dept. If the data not available and not tallying with the state figures the District GVO will be allocated to taluks in proportion to the taluk wise production. 4 Mining and Quarrying District wise production and Value of major and minor minerals were available from IBM Nagpur, State level input rates were used Taluk wise production and Value of major and minor minerals were to be collected, State level input rates were used 5 Manufacturing Registered Allocated in proportion to the district wise workforce Allocated in proportion to taluk wise workforce (DIC) 6 Manufacturing Unregistered Allocated in proportion to the district wise workforce Allocated in proportion to taluk wise workforce (SSI) 7 Construction Public (except LBs) Allocated in proportion to the district wise workforce of public Allocated in proportion to Taluk wise expenditure for construction made by PWD Local bodies From Link Documents for PRIs From Consolidated Expenditure Allocated in proportion to Taluk wise expenditure for construction made by PRIs and ULBs. HouseholdAllocated in proportion to the district wise workforce of private Allocated in proportion to taluk wise workforce (EC 2005) M ETHODOLOGY ADOPTED

32 32 Sl. No. Sector/ Sub sectorDDPTDP 8Electricity, Gas and Water Supply Electricity Allocated in proportion to the district wise electricity consumption Allocated in proportion to taluk wise electricity consumption Gas Allocated in proportion to the district wise biogas plants Allocated in proportion to the taluk wise biogas plants Water Supply Allocated in proportion to the workforce of public and private separately Allocate d in proportion to taluk wise workforce (presently EC 2005, in future from CLB application) 9Railways Allocated in proportion to the district wise railway length Allocated in proportion to the taluk wise railway length 10Transport by other means Mechanised Road Transport Allocated in proportion to the workforce of public and private moved with vehicle index separately Allocated in proportion to taluk wise registered vehicles Air Transport Allocated in proportion to the workforce Allocated in proportion to taluk wise workforce as per Economic Census 2005 Water Transport Allocated in proportion to the workforce Allocated in proportion to taluk wise workforce (EC 2005) Service Incidental to the Transport Allocated in proportion to the district wise GVO index Allocated in proportion to taluk wise workforce M ETHODOLOGY ADOPTED

33 33 Sl. No. Sector/ Sub sectorDDPTDP 11Storage State warehousing GVA will be allocated in proportion to the storage capacity and the rest in proportion to the district wise workforce Allocated in proportion to taluk wise in proportion to the storage capacity 12Communication Allocated in proportion to the workforce of public and private separately Allocated in proportion to taluk wise workforce available in Economic Census Trade, Hotel and Restaurants Allocated in proportion to the workforce of public and private organised separately Private unorganised will be allocated in proportion to the district wise GTI Allocate d in proportion to taluk wise workforce availble Economic Census Banking and Insurance Allocated in proportion to the workforce Allocated in proportion to taluk wise workforce from Economic census or Lead Bank of the district, 15Real Estate, Ownership of Dwellings, Business and Legal Services Allocated in proportion to the workforce and dwellings Allocated in proportion to taluk wise workforce and dwellings M ETHODOLOGY ADOPTED

34 34 Sl. No. Sector/ Sub sectorDDPTDP 16Public Administration Allocated in proportion to the workforce Allocated in proportion to taluk wise workforce 17Other Services Education Allocated in proportion to the district wise student enrolment Allocated in proportion to taluk wise student enrolment Medical Health Allocated in proportion to the workforce Allocated in proportion to taluk wise workforce Recreation and Entertainment Allocated in proportion to the district wise workforce Allocated in proportion to taluk wise workforce /Economic census 2005 Sanitary Services Allocated in proportion to the district wise workforce Allocated in proportion to taluk wise workforce/Economic census 2005 Rest of the ServicesAllocated in proportion to the district wise workforce Allocated in proportion to taluk wise workforce/Economic census M ETHODOLOGY ADOPTED

35 N UMBER OF T ALUKS IN DIFFERENT P ER C APITA I NCOME RANGE 35 Sl. No. PCI Range % share Current Prices Constant Prices % share Current Prices Constant Prices Above

36 36 SlnoDistGDDPRankTaluk MAX TDPTaluk MIN TDP 1Bagalkote Bagalkote141269Bilagi Bangalore Bangalore North Bangalore east Bangalore Rural Doddaballapur223758Devanahalli Belgaum Belgaum464954Ramdurg Bellary Sandur HagariBommanall i Bidar Bidar154788Aurad Bijapur Bijapur184458muddebihal Chamarajanagar a Chamarajanagar a102614Yelandur Chickballapur Chintamani101162Gudibande Chickmagalur Chickmagalur164734Sringeri Chitradurga Chitradurga180933Molkalmur D.Kannada Mangalore916525Sullia Davanagere Davanagere289777Jagalur Dharwad Dharwad502003Kundgol Gadag Naragund154640Mundargii45558 Statement Showing Maximum and Minimum TDP during current Prices (Rs in Lakh)

37 37 SlnoDistGDDPRankTaluk MAX TDPTaluk MIN TDP 16Gulbarga Gulbarga235202Afzalpur Hassan Hassan164423Alur Haveri Ranebennur98376Byadagi Kodagu Virajpet151542Somawarpet Kolar Bangarpet190146Malur Koppal Koppal138290Yelburga Mandya Mandya116499Srirangapatanna Mysore Mysore635166K.R.nagar Raichur Raichur164795Devdurga Ramanagar Ramangara167227Magadi Shivamogga Bhadravathi212182Thirthahalli Tumkur Tumkur278153Koratagere U.Kannada Karwar88909Supa Udupi Udupi353374Karkala Yadgir Shahapur156347Yadgir Statement Showing Maximum and Minimum TDP during current Prices (Rs in Lakh)

38 38 DistrictTalukMAXPTDPTalukMIN PTDP Bagalkote 52125Jamkhandi23710 BangaloreAnekal268480Bangalore east42735 Bangalore RuralDoddaballapur78876Devanahalli40093 Belgaum 52013Raibag24679 BellarySandur299344Hadagali22826 Bidar 34824Aurad18587 BijapurBasavanbagevadi35603muddebihal22987 ChamarajanagaraYelandur33266Kollegal27734 ChickballapurChickkaballapur47168Shidlaghatta26482 ChickmagalurMudigere61078Kadur26321 Chitradurga 43845Challakere23942 D.KannadaMangalore94716Belthangadi50267 Davanagere 43879Jagalur27421 Dharwad Kundgol32758 GadagNaragund46362Ron22147 Statement Showing Maximum and Minimum Percapita Income (PTDP) during current Prices

39 39 DistrictTalukMAXPTDPTalukMIN PTDP GulbargaJewargi38726Chittapur20568 HassanArakalgudu54653C.R.Patna21225 HaveriShiggon46090Hanagal21195 KodaguMadikeri90370 Somawarp et54253 KolarMulabagal50478Kolar35769 Koppal 40175Yelburga24353 MandyaPandavapura37182Malavalli25316 Mysore 55802Piriapatna26891 RaichurManvi39544Lingasagur23796 RamanagarRamangara64012Magadi28805 ShivamoggaHosanagara61405 Thirthahall i31810 Tumkur 49119Koratagere23372 U.KannadaKarwar54850Mundgod26813 UdupiKarkala73676Kundapura51765 YadgirShahapur48599Yadgir35020 Statement Showing Maximum and Minimum Percapita Income (PTDP) during current Prices

40 40 Data problems and Suggestions It has been observed that the data on forestry and mining is not homogeneously available at the taluk level. In many districts the taluk wise production of major & minor forest produces and Production and Value of minerals are not available, if available, the taluk wise total does not tally with the district figures available with the State Income unit. Zilla Panchayats should make an attempt to have uniform data across taluks.

41 41 Data problems and Suggestions The Economic cum Purpose Classification of local body annual accounts will yield many results which are essential in computation of taluk wise domestic product. It also provides amount which has been spent to create capital asset in the economy which will create more employment opportunities at the local level. This analysis presents the financial health of the respective local body. This activity requires more active participation from Zilla Panchayats.

42 Preparation of Common Business Register (CBR), micro level survey of organised and un- organised sectors under each industry at sub- district level will be undertaken under 13 th Finance Commission Grants Workforce will be derived from CBRs for each industry and Survey results will be useful for compiling Value Added Per Worker. These form taluk level base year estimates. These estimates will be used for compilation of DDP and SDP estimates ZPs should prepare a CBR and should update periodically. 42 Data problems and Suggestions - Usage of Common Business Register

43 43 Data problems and Suggestions All ZPs should make a presentation of local body accounts in comparison with Taluk Domestic Product at different levels This will enable to know the areas of imbalances at taluk level

44 THANK YOU 44


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