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ESTIMATES OF DISTRICT / TALUK DOMESTIC PRODUCT And its use

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Presentation on theme: "ESTIMATES OF DISTRICT / TALUK DOMESTIC PRODUCT And its use"— Presentation transcript:

1 ESTIMATES OF DISTRICT / TALUK DOMESTIC PRODUCT And its use
Directorate of Economics and Statistics Bangalore Karnataka

2 Definition 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”.

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 Scope and Coverage SDP / DDP excludes:
Defence personnel and other para-military forces Govt. offices abroad Foreign offices of LIC & GIC Bombay Offshore Deep sea fishing

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 Division of Economy into Sectors
Economy of the State is broadly classified into sectors in two ways Sl. No I II 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 Methods of Estimation Income is estimated in three ways Sl. No
Approach Sector 1 Production Approach Agriculture, Livestock, Forestry (Major and Minor forest products), Fishing, Mining and Quarrying and Manufacturing (registered) sectors. 2 Income 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. 3 Expenditure Approach Construction sector and Forestry (fuel wood consumption)

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. Gross Value Added (GVA) = Value of Output (GVO) – Value of Input Agriculture (including horticulture and livestock), Forestry, Fisheries, Mining and Quarrying and Registered Manufacturing

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 GVA (Public) = Aggregate of factor incomes (Compensation of Employees (CE) +Interest + Rent + Profits + Dividends) - Consumption of Fixed Capital GVA (Private) = Workforce X Value Added per Worker CE = Salaries + Pension + PF + Welfare Expenses all other sectors

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

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 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 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 GSDP – Consumption of Fixed Capital (CFC) = NSDP
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 1st October)

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 Previous Base Years Current Series Base Year 2004-05 (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 District Domestic Product
First District Income Estimates of the State was prepared in the late seventies at DES for the year at Current Prices. Subsequently for the years , and during Eighties At Current Prices From and onwards district income were prepared both at Current and Constant Prices In series the year wise and district wise DDP estimates were prepared and submitted to CSO Recently, DDP estimates from to in Series were sent to CSO

18 District Domestic Product
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, 1996. 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. For State Human Development Reports 1st released in 1999 and 2nd released in 2005 District income estimates were provided by DES

19 Sector wise Contribution of State Income
State’s Per capita Income for – Rs. 51,386 Highest District Per capita Income – Rs. 1,37,716 (Bangalore Urban) 2nd 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 (%) Sectors Primary 17.04 15.87 16.19 16.78 16.21 Secondary 31.81 31.34 29.10 28.45 27.45 Tertiary 51.15 52.80 54.71 54.77 56.34 Total 100 Per Capita 42419 48084 51386 59975 68374

20 District Domestic Product (Taluk wise)
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. 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. Technical guidance has been provided by DES for preparation of taluk income estimates to Udupi district.

21 Estimates of District Domestic Product (taluk wise)
Karnataka is the first state in India to attempt to compute taluk wise domestic product estimates under KSSSP. At present, we have estimates up to the district level Taluk level estimates brings light on intra district variation in economic development This helps to set priority in formulating development plans depending upon its level of backwardness Helps to calculate Human Development Index

22 Estimates of District Domestic Product (taluk wise)
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.

23 Estimates of District Domestic Product (taluk wise)
The first meeting of all CPOs has been held on

24 Estimates of District Domestic Product (taluk wise)
Meeting with CSO officers on finalisation of the methodology to prepare Taluk income at Bangalore was held on

25 Estimates of District Domestic Product (taluk wise)
After the meeting with CSO officials, District wise training programmes to all the departments were organised and the importance and formats were explained.

26 Estimates of District Domestic Product (taluk wise)
Two days hands on training to the consultants were organised in 4 phases between 7th September, 2011 and 24th September, All the consultants were trained about the methodology and formats for computation of Taluk income.

27 Methodology 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.

28 Present methodology - Agriculture
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

29 Present methodology - Livestock
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

30 Agriculture and Livestock
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

31 Methodology adopted Sl. No. Sector/ Sub sector DDP TDP 2 Forestry
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 3 Fishing 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 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. Household Allocated in proportion to the district wise workforce of private Allocated in proportion to taluk wise workforce (EC 2005)

32 Methodology adopted Sl. No. Sector/ Sub sector DDP TDP 8
Electricity, 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) 9 Railways Allocated in proportion to the district wise railway length Allocated in proportion to the taluk wise railway length 10 Transport 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 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

33 Methodology adopted Sl. No. Sector/ Sub sector DDP TDP 11 Storage
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 12 Communication Allocated in proportion to the workforce of public and private separately Allocated in proportion to taluk wise workforce available in Economic Census 2005 13 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 2005. 14 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, 15 Real 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

34 Methodology adopted Sl. No. Sector/ Sub sector DDP TDP 16
Public Administration Allocated in proportion to the workforce Allocated in proportion to taluk wise workforce 17 Other 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 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 taluk wise workforce/Economic census 2005 Rest of the Services Allocated in proportion to taluk wise workforce/Economic census 2005.

35 Number of Taluks in different Per Capita Income range
Sl. No. PCI Range % share Current Prices Constant Prices % share 1 144 62 110 81.8 35.2 62.5 2 27 97 56 15.3 55.1 31.8 3 10 6 1.1 5.7 3.4 4 0.6 1.7 0.0 5 Above 176 100.0

36 Statement Showing Maximum and Minimum TDP during 2008-09 current Prices (Rs in Lakh)
Slno Dist GDDP Rank Taluk MAX TDP MIN TDP 1 Bagalkote 604015 15 141269 Bilagi 58734 2 Bangalore Bangalore North Bangalore east 527727 3 Bangalore Rural 641057 13 Doddaballapur 223758 Devanahalli 81439 4 Belgaum 464954 Ramdurg 72885 5 Bellary Sandur 627209 HagariBommanalli 53569 6 Bidar 570830 17 154788 Aurad 49972 7 Bijapur 422030 24 184458 muddebihal 63904 8 Chamarajanagara 299763 29 102614 Yelandur 28429 9 Chickballapur 418542 25 Chintamani 101162 Gudibande 18841 10 Chickmagalur 508845 21 164734 Sringeri 20649 11 Chitradurga 573597 16 180933 Molkalmur 46985 12 D.Kannada Mangalore 916525 Sullia 126323 Davanagere 716929 289777 Jagalur 47752 14 Dharwad 502003 Kundgol 56390 Gadag 362527 28 Naragund 154640 Mundargii 45558

37 Statement Showing Maximum and Minimum TDP during 2008-09 current Prices (Rs in Lakh)
Slno Dist GDDP Rank Taluk MAX TDP MIN TDP 16 Gulbarga 698393 11 235202 Afzalpur 69489 17 Hassan 642291 12 164423 Alur 26451 18 Haveri 468711 23  Ranebennur 98376 Byadagi 38299 19 Kodagu 414654 26 Virajpet 151542 Somawarpet 122449 20 Kolar 626657 14 Bangarpet 190146 Malur 85807 21 Koppal 394691 27 138290 Yelburga 63094 22 Mandya 560353 116499 Srirangapatanna 48001 Mysore 5 635166 K.R.nagar 77340 24 Raichur 554276 164795 Devdurga 61992 25 Ramanagar 478015 Ramangara 167227 Magadi 63907 Shivamogga 810716 8 Bhadravathi 212182 Thirthahalli 49930 Tumkur 959911 7 278153 Koratagere 41231 28 U.Kannada 530297 Karwar 88909 Supa 23724 29 Udupi 733536 9 353374 Karkala 166025 30 Yadgir 169872 Shahapur 156347 125096

38 Statement Showing Maximum and Minimum Percapita Income (PTDP) during 2008-09 current Prices
District Taluk MAXPTDP MIN PTDP Bagalkote 52125 Jamkhandi 23710 Bangalore Anekal 268480 Bangalore east 42735 Bangalore Rural Doddaballapur 78876 Devanahalli 40093 Belgaum 52013 Raibag 24679 Bellary Sandur 299344 Hadagali 22826 Bidar 34824 Aurad 18587 Bijapur Basavanbagevadi 35603 muddebihal 22987 Chamarajanagara Yelandur 33266 Kollegal 27734 Chickballapur Chickkaballapur 47168 Shidlaghatta 26482 Chickmagalur Mudigere 61078 Kadur 26321 Chitradurga 43845 Challakere 23942 D.Kannada Mangalore 94716 Belthangadi 50267 Davanagere 43879 Jagalur 27421 Dharwad 119802 Kundgol 32758 Gadag Naragund 46362 Ron 22147

39 Statement Showing Maximum and Minimum Percapita Income (PTDP) during 2008-09 current Prices
District Taluk MAXPTDP MIN PTDP Gulbarga Jewargi 38726 Chittapur 20568 Hassan Arakalgudu 54653 C.R.Patna 21225 Haveri Shiggon 46090 Hanagal 21195 Kodagu Madikeri 90370 Somawarpet 54253 Kolar Mulabagal 50478 35769 Koppal 40175 Yelburga 24353 Mandya Pandavapura 37182 Malavalli 25316 Mysore 55802 Piriapatna 26891 Raichur Manvi 39544 Lingasagur 23796 Ramanagar Ramangara 64012 Magadi 28805 Shivamogga Hosanagara 61405 Thirthahalli 31810 Tumkur 49119 Koratagere 23372 U.Kannada Karwar 54850 Mundgod 26813 Udupi Karkala 73676 Kundapura 51765 Yadgir Shahapur 48599 35020

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 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 Data problems and Suggestions - Usage of Common Business Register
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 13th 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.

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


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