ESTIMATES OF DISTRICT / TALUK DOMESTIC PRODUCT And its use

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 years
  product at current years prices is termed as
  INCOME AT CURRENT PRICES
• Income obtained by evaluating the current years
  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
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
• 1948-49 (1956) 1960-61 (1967) 1970-71 (1978)
• 1980-81 (1988) 1993-94 (1999) 1999-2000 (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 1960-61 at Current Prices.
• Subsequently for the years 1970-71, 1975-76
  and1980-81 during Eighties At Current Prices
• From 1980-81 and onwards district income were
  prepared both at Current and Constant Prices
• In 1999-2000 series the year wise and district
  wise DDP estimates were prepared and submitted to
  CSO
• Recently, DDP estimates from 2004-05 to 2008-09
  in 2004-05 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

• States Per capita Income for 2009-10 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 2007-08 2008-09 2009-10 2010-11 2011-12
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 100 100 100 100 100
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 1993-94 both at
  Current/Constant (1980-81) Prices.
• Subsequently for the purpose of preparation of
  District Human Development reports of Bijapur,
  Gulburga and Mysore, taluk income estimates for
  the years 1999-00 and 2005-06 at Current/Constant
  (1999-00) 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
  15.07.2011

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 25.07.2011

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, 2011. 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 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.
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, Gas and Water Supply 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 Transport by other means 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 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
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 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 Services Allocated in proportion to the district wise workforce Allocated in proportion to taluk wise workforce/Economic census 2005.
35
Number of Taluks in different Per Capita Income
range

Sl. No. PCI Range 2004-05 2008-09 2008-09 2004-05 2008-09 share 2008-09 share
Sl. No. PCI Range 2004-05 Current Prices Constant Prices share Current Prices Constant Prices
1 10000-30000 144 62 110 81.8 35.2 62.5
2 30000-60000 27 97 56 15.3 55.1 31.8
3 60000-80000 2 10 6 1.1 5.7 3.4
4 80000-100000 1 3   0.6 1.7 0.0
5 100000-150000 2 1 1 1.1 0.6 0.6
6 Above 150000   3 3 0.0 1.7 1.7
    176 176 176 100.0 100.0 100.0
36
Statement Showing Maximum and Minimum TDP during
2008-09 current Prices (Rs in Lakh)
Slno Dist GDDP Rank Taluk MAX TDP Taluk MIN TDP
1 Bagalkote 604015 15 Bagalkote 141269 Bilagi 58734
2 Bangalore 10550455 1 Bangalore North 7286209 Bangalore east 527727
3 Bangalore Rural 641057 13 Doddaballapur 223758 Devanahalli 81439
4 Belgaum 1624887 2 Belgaum 464954 Ramdurg 72885
5 Bellary 1342684 4 Sandur 627209 HagariBommanalli 53569
6 Bidar 570830 17 Bidar 154788 Aurad 49972
7 Bijapur 422030 24 Bijapur 184458 muddebihal 63904
8 Chamarajanagara 299763 29 Chamarajanagara 102614 Yelandur 28429
9 Chickballapur 418542 25 Chintamani 101162 Gudibande 18841
10 Chickmagalur 508845 21 Chickmagalur 164734 Sringeri 20649
11 Chitradurga 573597 16 Chitradurga 180933 Molkalmur 46985
12 D.Kannada 1550194 3 Mangalore 916525 Sullia 126323
13 Davanagere 716929 10 Davanagere 289777 Jagalur 47752
14 Dharwad 1042383 6 Dharwad 502003 Kundgol 56390
15 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 Taluk MIN TDP
16 Gulbarga 698393 11 Gulbarga 235202 Afzalpur 69489
17 Hassan 642291 12 Hassan 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 Koppal 138290 Yelburga 63094
22 Mandya 560353 18 Mandya 116499 Srirangapatanna 48001
23 Mysore 1226836 5 Mysore 635166 K.R.nagar 77340
24 Raichur 554276 19 Raichur 164795 Devdurga 61992
25 Ramanagar 478015 22 Ramangara 167227 Magadi 63907
26 Shivamogga 810716 8 Bhadravathi 212182 Thirthahalli 49930
27 Tumkur 959911 7 Tumkur 278153 Koratagere 41231
28 U.Kannada 530297 20 Karwar 88909 Supa 23724
29 Udupi 733536 9 Udupi 353374 Karkala 166025
30 Yadgir 169872 30 Shahapur 156347 Yadgir 125096
38
Statement Showing Maximum and Minimum Percapita
Income (PTDP) during 2008-09 current Prices
District Taluk MAXPTDP Taluk MIN PTDP
Bagalkote Bagalkote 52125 Jamkhandi 23710
Bangalore Anekal 268480 Bangalore east 42735
Bangalore Rural Doddaballapur 78876 Devanahalli 40093
Belgaum Belgaum 52013 Raibag 24679
Bellary Sandur 299344 Hadagali 22826
Bidar 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 Chitradurga 43845 Challakere 23942
D.Kannada Mangalore 94716 Belthangadi 50267
Davanagere Davanagere 43879 Jagalur 27421
Dharwad 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 Taluk 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 Kolar 35769
Koppal Koppal 40175 Yelburga 24353
Mandya Pandavapura 37182 Malavalli 25316
Mysore Mysore 55802 Piriapatna 26891
Raichur Manvi 39544 Lingasagur 23796
Ramanagar Ramangara 64012 Magadi 28805
Shivamogga Hosanagara 61405 Thirthahalli 31810
Tumkur Tumkur 49119 Koratagere 23372
U.Kannada Karwar 54850 Mundgod 26813
Udupi Karkala 73676 Kundapura 51765
Yadgir Shahapur 48599 Yadgir 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