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 StatisticsBangaloreKarnataka
2 DefinitionDomestic 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 IndicesIn assessing the relative contribution of different sectors of the economy to the INCOME of the State/District/Taluk andTo 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 forcesGovt. offices abroadForeign offices of LIC & GICBombay OffshoreDeep 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 waysSl. NoIII1Primary SectorAgriculture (including Livestock), Forestry, Fishing and Mining & quarryingAgriculture SectorAgriculture (including Livestock), Forestry and Fishing2Secondary SectorManufacturing (Regd. & Unregd.), Construction and Electricity, Gas & Water SupplyIndustry SectorMining & quarrying, Manufacturing (Regd. & Unregd.), Construction and Electricity, Gas & Water Supply3Tertiary SectorRailways, Transport by other means, Storage, Communication, Trade Hotels & Restaurants, Banking & Insurance, Real Estate, Ownership of dwellings, Legal & Business Services and Other ServicesService SectorRailways, 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 ApproachSector1Production ApproachAgriculture, Livestock, Forestry (Major and Minor forest products), Fishing, Mining and Quarrying and Manufacturing (registered) sectors.2Income ApproachManufacturing (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 ApproachConstruction 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 InputAgriculture (including horticulture and livestock), Forestry, Fisheries, Mining and Quarrying and Registered Manufacturing
9 Methods of EstimationIn 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 & ProfitGVA (Public) = Aggregate of factor incomes (Compensation of Employees (CE) +Interest + Rent + Profits + Dividends) - Consumption of Fixed CapitalGVA (Private) = Workforce X Value Added per WorkerCE = Salaries + Pension + PF + Welfare Expensesall other sectors
10 Methods of EstimationEXPENDITURE (Consumption) method is based on the measurement of Income at the stage of disposal.GVA = Gross Value of Output X (GVA/GVO) ratiosConstruction sectorAt present all the three methods are followed to compute Gross State Domestic Product.
11 Treatment of PricesIncome obtained by evaluating the current year’s product at current year’s prices is termed as INCOME AT CURRENT PRICESIncome obtained by evaluating the current year’s product at some single base year prices is termed as INCOME AT CONSTANT PRICESIncome 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 ServicesThis 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 accountThis flow is based on the concept of the expected economic life of the individual assetsCovers 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 IncomeBy deducting consumption of fixed capital (depreciation) from GSDP we get NET STATE DOMESTIC PRODUCT (NSDP)GSDP – Consumption of Fixed Capital (CFC) = NSDPPer 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 pricesWhen its value is compared over years, it is affected by not only the changes in production but also by the changes in pricesTherefore, 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 yearThe 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 yearsPreviously population census yearsCurrently, 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 PricesFrom and onwards district income were prepared both at Current and Constant PricesIn series the year wise and district wise DDP estimates were prepared and submitted to CSORecently, 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 Reports1st released in 1999 and2nd released in 2005District income estimates were provided by DES
19 Sector wise Contribution of State Income State’s Per capita Income for – Rs. 51,386Highest 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 (%)SectorsPrimary17.0415.8716.1916.7816.21Secondary31.8131.3429.1028.4527.45Tertiary51.1552.8054.7154.7756.34Total100Per Capita4241948084513865997568374
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 levelTaluk level estimates brings light on intra district variation in economic developmentThis helps to set priority in formulating development plans depending upon its level of backwardnessHelps 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 PlanZilla 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 followedTotal 103 Crops are covered1. 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 covered1. 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 StockSource of the Data : Production and prices are collected from Livestock Census and Integrated Sample Surveys of Animal Husbandry DepartmentValue of Output (GVO) = Production X Prices
30 Agriculture and Livestock GVO = GVO of Agriculture + GVO of LivestockValue of Inputs are1. 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 OilGVA = GVO – Value of InputIn 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 surveyTaluk 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 popultion3FishingDistrict 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.4Mining and QuarryingDistrict wise production and Value of major and minor minerals were available from IBM Nagpur, State level input rates were usedTaluk wise production and Value of major and minor minerals were to be collected, State level input rates were used5Manufacturing RegisteredAllocated in proportion to the district wise workforceAllocated in proportion to taluk wise workforce (DIC)6Manufacturing UnregisteredAllocated in proportion to taluk wise workforce (SSI)7ConstructionPublic (except LBs)Allocated in proportion to the district wise workforce of publicAllocated in proportion to Taluk wise expenditure for construction made by PWDLocal bodiesFrom Link Documents for PRIsFrom Consolidated ExpenditureAllocated in proportion to Taluk wise expenditure for construction made by PRIs and ULBs.HouseholdAllocated in proportion to the district wise workforce of privateAllocated in proportion to taluk wise workforce (EC 2005)
32 Methodology adopted Sl. No. Sector/ Sub sector DDP TDP 8 Electricity, Gas and Water SupplyElectricityAllocated in proportion to the district wise electricity consumptionAllocated in proportion to taluk wise electricity consumptionGasAllocated in proportion to the district wise biogas plantsAllocated in proportion to the taluk wise biogas plantsWater SupplyAllocated in proportion to the workforce of public and private separatelyAllocate d in proportion to taluk wise workforce (presently EC 2005, in future from CLB application)9RailwaysAllocated in proportion to the district wise railway lengthAllocated in proportion to the taluk wise railway length10Transport by other meansMechanised Road TransportAllocated in proportion to the workforce of public and private moved with vehicle index separatelyAllocated in proportion to taluk wise registered vehiclesAir TransportAllocated in proportion to the workforceAllocated in proportion to taluk wise workforce as per Economic Census 2005Water TransportAllocated in proportion to taluk wise workforce (EC 2005)Service Incidental to the TransportAllocated in proportion to the district wise GVO indexAllocated 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 workforceAllocated in proportion to taluk wise in proportion to the storage capacity12CommunicationAllocated in proportion to the workforce of public and private separatelyAllocated in proportion to taluk wise workforce available in Economic Census 200513Trade, Hotel and RestaurantsAllocated in proportion to the workforce of public and private organised separatelyPrivate unorganised will be allocated in proportion to the district wise GTIAllocate d in proportion to taluk wise workforce availble Economic Census 2005.14Banking and InsuranceAllocated in proportion to the workforceAllocated in proportion to taluk wise workforce from Economic census or Lead Bank of the district,15Real Estate, Ownership of Dwellings, Business and Legal ServicesAllocated in proportion to the workforce and dwellingsAllocated in proportion to taluk wise workforce and dwellings
34 Methodology adopted Sl. No. Sector/ Sub sector DDP TDP 16 Public AdministrationAllocated in proportion to the workforceAllocated in proportion to taluk wise workforce17Other ServicesEducationAllocated in proportion to the district wise student enrolmentAllocated in proportion to taluk wise student enrolmentMedical HealthAllocated in proportion to taluk wise workforceRecreation and EntertainmentAllocated in proportion to the district wise workforceAllocated in proportion to taluk wise workforce /Economic census 2005Sanitary ServicesAllocated in proportion to taluk wise workforce/Economic census 2005Rest of the ServicesAllocated in proportion to taluk wise workforce/Economic census 2005.
35 Number of Taluks in different Per Capita Income range Sl.No.PCI Range% shareCurrent PricesConstant Prices% share11446211081.835.262.5227975615.355.131.831061.15.73.440.61.70.05Above176100.0
36 Statement Showing Maximum and Minimum TDP during 2008-09 current Prices (Rs in Lakh) SlnoDistGDDPRankTalukMAX TDPMIN TDP1Bagalkote60401515141269Bilagi587342BangaloreBangalore NorthBangalore east5277273Bangalore Rural64105713Doddaballapur223758Devanahalli814394Belgaum464954Ramdurg728855BellarySandur627209HagariBommanalli535696Bidar57083017154788Aurad499727Bijapur42203024184458muddebihal639048Chamarajanagara29976329102614Yelandur284299Chickballapur41854225Chintamani101162Gudibande1884110Chickmagalur50884521164734Sringeri2064911Chitradurga57359716180933Molkalmur4698512D.KannadaMangalore916525Sullia126323Davanagere716929289777Jagalur4775214Dharwad502003Kundgol56390Gadag36252728Naragund154640Mundargii45558
37 Statement Showing Maximum and Minimum TDP during 2008-09 current Prices (Rs in Lakh) SlnoDistGDDPRankTalukMAX TDPMIN TDP16Gulbarga69839311235202Afzalpur6948917Hassan64229112164423Alur2645118Haveri46871123 Ranebennur98376Byadagi3829919Kodagu41465426Virajpet151542Somawarpet12244920Kolar62665714Bangarpet190146Malur8580721Koppal39469127138290Yelburga6309422Mandya560353116499Srirangapatanna48001Mysore5635166K.R.nagar7734024Raichur554276164795Devdurga6199225Ramanagar478015Ramangara167227Magadi63907Shivamogga8107168Bhadravathi212182Thirthahalli49930Tumkur9599117278153Koratagere4123128U.Kannada530297Karwar88909Supa2372429Udupi7335369353374Karkala16602530Yadgir169872Shahapur156347125096
38 Statement Showing Maximum and Minimum Percapita Income (PTDP) during 2008-09 current Prices DistrictTalukMAXPTDPMIN PTDPBagalkote52125Jamkhandi23710BangaloreAnekal268480Bangalore east42735Bangalore RuralDoddaballapur78876Devanahalli40093Belgaum52013Raibag24679BellarySandur299344Hadagali22826Bidar34824Aurad18587BijapurBasavanbagevadi35603muddebihal22987ChamarajanagaraYelandur33266Kollegal27734ChickballapurChickkaballapur47168Shidlaghatta26482ChickmagalurMudigere61078Kadur26321Chitradurga43845Challakere23942D.KannadaMangalore94716Belthangadi50267Davanagere43879Jagalur27421Dharwad119802Kundgol32758GadagNaragund46362Ron22147
39 Statement Showing Maximum and Minimum Percapita Income (PTDP) during 2008-09 current Prices DistrictTalukMAXPTDPMIN PTDPGulbargaJewargi38726Chittapur20568HassanArakalgudu54653C.R.Patna21225HaveriShiggon46090Hanagal21195KodaguMadikeri90370Somawarpet54253KolarMulabagal5047835769Koppal40175Yelburga24353MandyaPandavapura37182Malavalli25316Mysore55802Piriapatna26891RaichurManvi39544Lingasagur23796RamanagarRamangara64012Magadi28805ShivamoggaHosanagara61405Thirthahalli31810Tumkur49119Koratagere23372U.KannadaKarwar54850Mundgod26813UdupiKarkala73676Kundapura51765YadgirShahapur4859935020
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 GrantsWorkforce 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 estimatesZPs 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 levelsThis will enable to know the areas of imbalances at taluk level