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ESTIMATES OF DISTRICT /TALUK DOMESTIC
PRODUCT AND ITS USE
Directorate of Economics and Statistics
Bangalore
Karnataka
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Domestic Product isaggregate economic value of
all the goods and servicesproduced within thegeographical boundaries,counted without duplicationduring a specic period oftime.
Definition
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Importance and Need
Measure the growth in the economy To build the Human Development Indices
In assessing the relative contribution of differentsectors of the economy to the INCOME of the
tate!District!Talu" and To #now the nature and e$tent of Inter%sectoral
and inter%regional imbalances in the economy
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SCOPE ANDCOVERAGE
SDP / DDPe$cludes&
o Defence personnel and other para%military
forces
o 'ovt( offices abroad
o )oreign offices of *IC + 'IC
o ,ombay Offshore
o Deep sea fishing4
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Concept
INCOME O-I'IN.TIN' concept is being adopted in
the tate
um total of the economic value of goods and servicesproduced in the region(
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Division of Economy into Secto Economy of the tate is broadly classified into sectors in two ways
Sl.No
I II
1 Primary Sector Agricuture !incuding
"ivestoc#$% &orestry% &is'ing and(ining ) *uarrying
Agriculture Sector Agricuture !incuding "ivestoc#$%
&orestry and &is'ing
+ Secondary Sector (anufacturing !Regd, )-nregd,$% Construction andEectricity% Gas ) .ater Suppy
Industry Sector (ining ) *uarrying%(anufacturing !Regd, ) -nregd,$%Construction and Eectricity% Gas )
.ater Suppy/ Tertiary Sector
Rai0ays% ransport 2y ot'ermeans% Storage%Communication% rade 3otes )Restaurants% 4an#ing )Insurance% Rea Estate%O0ners'ip of d0eings% "ega )4usiness Services and Ot'er
Service Sector Rai0ays% ransport 2y ot'ermeans% Storage% Communication%
rade 3otes ) Restaurants% 4an#ing) Insurance% Rea Estate% O0ners'ipof d0eings% "ega ) 4usinessServices and Ot'er Services,
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(et'ods of Estimation
Income is estimated in three ways
Sl.No
Approach Sector
1 Production
Approac'
Agricuture% "ivestoc#% &orestry !(a5or and
(inor forest products$% &is'ing% (ining and6uarrying and (anufacturing !registered$sectors,
+ IncomeApproac'
(anufacturing !-nregistered$%Eectricity% Gas and .ater suppy%
ransport% Storage and Communication%rade% 3otes and Restaurants% 4an#ingand Insurance% Rea Estate and 4usinessServices% Pu2ic Administration and Ot'erServices,
/ E7penditure
Approac'
Construction sector and &orestry !fue
0ood consumption$
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(et'ods of Estimation(et'ods of Estimation
Income can be estimated in three ways /-OD0CTION method envisages evaluation of all
goods and services produced within the region during
a period of time( )rom value of production1 cost of -awmaterials1 )uel etc(1 are to be deducted((o Gross Value Added (GVA) =
Value of Output (GVO) Value of Inputo .griculture 2including horticulture and livestoc"31
)orestry1 )isheries1 Mining and 4uarrying and
-egistered Manufacturing
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(et'ods of Estimation(et'ods of Estimation
In INCOME 2Distribution3 method1 aggregate income
is distributed among the four factors of production vi5(1
*and1 *abour1 Capital + Enterprise( These )actors of
production fetches -ent1 6ages1 Interest + /rofito GVA (Public) = Aggregate of factor incomes
(Compensation of Employees (CE) Interest !ent
Profits "i#idends) $ Consumption of %i&ed Capitalo
GVA (Pri#ate) = 'orforce Value Added per 'orero CE 7 alaries 8 /ension 8 /) 8 6elfare E$penseso all other sectors
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(et'ods of Estimation(et'ods of Estimation
E9/ENDIT0-E 2Consumption3 method is based on
the measurement of Income at the stage of
disposal(
o GVA = Gross Value of Output (GVA*GVO)ratios
o Construction sector
.t present all the three methods are followed to
compute 'ross tate Domestic /roduct(
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reatment of Prices
Income obtained by evaluating the current year:s product at
current year:s prices is termed as I+CO,E A- C.!!E+-
P!ICE/
Income obtained by evaluating the current year:s product atsome single base year prices is termed as I+CO,E A-
CO+/-A+- P!ICE/
Income at CO+/-A+- prices reflects the real growth in the
economy
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&inancia Intermediation ServiceIndirecty (easured !&ISI($
Termed as Imputed ,an" Charges 2I,C3 Is allocated to user industries li"e .griculture1
*ivestoc"1 Mining and 4uarrying1 -egd(Manufacturing1 0n%regd( Manufacturing1
Construction1 Electricity1 'as + 6ater upply1
Transport1 torage1 Trade1 Hotels + -estaurants1
,usiness ervices and Other ervices This )IIM is deducted to arrive 'D/
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Consumption of &i7edCapita !C&C$
Termed as Depreciation It is that part of 'ross /roduct which is re;uired to
replace the fi$ed capital used up in process ofproduction during the period of account
This flow is based on the concept of the e$pected
economic life of the individual assets Covers the e$pected loss in value terms due to
obsolescence as well as normal wear and tear
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(easures reating toIncome
,y deducting consumption of fi$ed capital 2depreciation3
from 'D/ we get NET T.TE DOMETIC /-OD0CT
2ND/3
'D/ < Consumption of )i$ed Capital 2C)C3 7 ND/
/er Capita Income is derived by dividing the ND/ atcurrent prices with mid year pro=ected population 2as on >st
October3
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4ase 8ears or Constant
Prices 6hen 'D/ is measured for an accounting year it ismeasured at current prices
6hen its value is compared over years1 it is affected
by not only the changes in production but also by thechanges in prices
Therefore1 it is necessary to eliminate the effect of
prices1 which is done by calculating the value of 'D/
at given prices of a particular base year The 'D/ thus obtained is at constant prices( This
gives a measure of the growth of the economy
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Previous 4ase 8earsPrevious 4ase 8ears
Current eries ,ase ?ear @AAB%A 2@A>A3 /revious series base years
>B%B 2>F3 >FA%F> 2>FG3 >GA%G> 2>G3
>A%> 2>3 >%B 2>3 >%@AAA 2@AAF3 Choice of base years
/reviously population census years
Currently1 the N employment%unemployment surveyyears
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o )irst District Income Estimates of the tate was preparedin the late seventies at DE for the year >FA%F> atCurrent /rices(
o ubse;uently for the years >GA%G>1 >G%GF and>A%
> during Eighties .t Current /riceso )rom >A%> and onwards district income were
prepared both at Current and Constant /riceso
In >%@AAA series the year wise and district wise DD/estimates were prepared and submitted to COo -ecently1 DD/ estimates from @AAB%A to @AA%A in
@AAB%A eries were sent to CO 17
District Domestic Product
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o On the recommendations of econd -egional Conference ontatistical Matters1 the 'overnment of #arnata"a and 0ttar/radesh =ointly prepared a draft methodology for compiling theestimates of District Domestic /roduct and submitted the reportto CO in .ugust1 >F(
o
This draft methodology prepared =ointly by the 'overnments of#arnata"a and 0ttar /radesh was circulated among tateDirectorates of Economics + tatistics for their comments inorder to prepare a standard methodology for compiling the DD/estimates and implement the system of District Domestic /roductin tates(
o )or tate Human Development -eportso >streleased in > ando @nd released in @AA
o District income estimates were provided by DE 18
District Domestic Product
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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)
2ndHighest 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 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
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o .n attempt has been made to prepare Talu" level incomeestimates of the districts of Da"shina #annada + Tum"urfor the year >%B both at Current!Constant 2>A%>3/rices(
o ubse;uently for the purpose of preparation of DistrictHuman Development reports of ,i=apur1 'ulburga andMysore1 talu" income estimates for the years >%AAand @AA%AF at Current!Constant 2>%AA3 /rices were
prepared by DE(o Technical guidance has been provided by DE for
preparation of talu" income estimates to 0dupi district(20
District Domestic Product !au#0ise$
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ESI(AES O& DISRIC DO(ESICPROD-C !A"-9 .ISE$
o 0arnataa is t1e first state in India to attempt to compute talu"wise domestic product estimates under #/(
o .t present1 we have estimates up to the district level
o Talu" level estimates brings light on intra district variation in
economic developmento This helps to set priority in formulating development plans
depending upon its level of bac"wardness
o Helps to calculate Human Development Inde$
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Estimating the Domestic Product at District level bythe Zilla Panchayats (ZPs) is one of the milestones to
be achieved underDistrict Domestic Productactivity
inKarnataka State Strategic Statistical Plan
Zilla Panchayaths (ZP) are the nodal agency
responsible to prepare these estimates at Districtlevel. 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 PriceIndex (Urban / Rural) and Contribution of Local
Bodies.
State Income unit of the DES is nodal agency in
achieving this milestone.
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ESI(AES O& DISRIC DO(ESICPROD-C !A"-9 .ISE$
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The first meeting of all C/Os has been held on >(AG(@A>>
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ESI(AES O& DISRIC DO(ESICPROD-C !A"-9 .ISE$
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Meeting with CO officers on finalisation of the methodology
to prepare Talu" income at ,angalore was held on @(AG(@A>>
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ESI(AES O& DISRIC DO(ESICPROD-C !A"-9 .ISE$
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.fter the meeting with CO officials1 District wise training
programmes to all the departments were organised and theimportance and formats were e$plained(
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ESI(AES O& DISRIC DO(ESICPROD-C !A"-9 .ISE$
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Two days hands on training to the consultants were organised in B phases
between Gth
eptember1 @A>> and @Bth
eptember1 @A>>( .ll theconsultants were trained about the methodology and formats forcomputation of Talu" income(
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ESI(AES O& DISRIC DO(ESICPROD-C !A"-9 .ISE$
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METHODOLOGY ADOPTED FOR
COMPUTATION OF TALUK DOMESTIC
PRODUCTThe 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.
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PRESENT METHODOLOGY -
AGRICULTURE
/roduction .pproach is followed Total >A Crops are covered >( Cereals 231 @( /ulses 2F31 ( Oil seeds 2>>31
B( ugarcane 231 ( )iber 231 F( Drugs and Narcotics 231
G( Condiments + pices 231 (Horticulture Crops 2@G31 ()loriculture Crops 231 >A( Miscellaneous Crops 23
and >>(,y products 2@A3
ource of the Data & )ully -evised Estimates of /roduction 2DE31Horticulture Department1 ugar Directorate and ,oards for
production and for prices ./MCs1 ,oards and /rices section ofDE
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PRESENT METHODOLOGY - LIVESTOCK
Total G Items of livestoc" are covered >( Mil" 2>31 @( Meat 231 ( Meat products 2B3
B( Meat ,y%products 2>@3 ( Egg 2>31 F( 6ool + Hair 2B31
G( Dung 2@3 ( Other /roducts 23 and ( Increment in toc"
ource of the Data & /roduction and prices are collected from
*ivestoc" Census and Integrated ample urveys of .nimalHusbandry Department
alue of Output 2'O3 7 /roduction 9 /rices
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AGRICULTURE AND LIVESTOCK
'O 7 'O of .griculture 8 'O of *ivestoc"
alue of Inputs are
>( eed1 @( Organic Manure1 ( Chemical )ertilisers1
B( -epairs + Maintenance1 ( )eed of *ivestoc"1
F( Irrigation Charges1 G( Mar"et Charges1 ( Electricity1
( /esticides and Insecticides and >A( Diesel Oil
'. 7 'O < alue of Input
In addition the '. from 'ovt( Irrigation ystem is added( This
will be obtained by analysing the budget documents
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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
availale and not tallyin! with the state fi!ures the District"#O will e allocated to taluks in proportion to the taluk
area and the firewood "#O in proportion to the taluk wise
popultion
$ Fishin! 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 availale and not
tallyin! with the state fi!ures the District "#O will e
allocated to taluks in proportion to the taluk wise
production.% &inin! and
'uarryin!
District wise production and #alue of
major and minor minerals were
availale from I(& Na!pur) State
level input rates were used
Taluk wise production and #alue of major and minor
minerals were to e collected) State level input rates
were used
* &anufacturin!
+e!istered
,llocated in proportion to the district
wise workforce
,llocated in proportion to taluk wise workforce -DI/
0 &anufacturin!
1nre!istered
,llocated in proportion to the district
wise workforce
,llocated in proportion to taluk wise workforce -SSI/
onstruction
3ulic -e4cept 5(s/
,llocated in proportion to the district
wise workforce of pulic
,llocated in proportion to Taluk wise e4penditure for
construction made y 36D
5ocal odies From 5ink Documents for 3+Is
From onsolidated 74penditure
,llocated in proportion to Taluk wise e4penditure for
construction made y 3+Is and 15(s.
8ousehold ,llocated in proportion to the district
wise workforce of private
,llocated in proportion to taluk wise workforce -7
299*/
METHODOLOGY ADOPTED
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Sl.
No.Sector/ Sub sector DDP TDP
8 Electricity, Gas and Water Supply
7lectricity ,llocated in proportion to the district
wise electricity consumption
,llocated in proportion to taluk wise
electricity consumption
"as ,llocated in proportion to the district
wise io!as plants
,llocated in proportion to the taluk wise
io!as plants
6ater Supply ,llocated in proportion to the
workforce of pulic and private
separately
,llocate d in proportion to taluk wise
workforce -presently 7 299*) in future from
5( application/
: +ailways ,llocated in proportion to the district
wise railway len!th
,llocated in proportion to the taluk wise
railway len!th
;9 Transport y other means
&echanised +oad Transport ,llocated in proportion to the
workforce of pulic and private moved
with vehicle inde4 separately
,llocated in proportion to taluk wise
re!istered vehicles
,ir Transport ,llocated in proportion to the
workforce
,llocated in proportion to taluk wise
workforce as per 7conomic ensus 299*
6ater Transport ,llocated in proportion to the
workforce
,llocated in proportion to taluk wise
workforce -7 299*/
Service Incidental to the
Transport
,llocated in proportion to the district
wise "#O inde4
,llocated in proportion to taluk wise
workforce
METHODOLOGY ADOPTED
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Sl.
No.
Sector/ Sub sector DDP TDP
;; Stora!e State warehousin! "#, will e
allocated in proportion to the stora!e
capacity and the rest in proportion to
the district wise workforce
,llocated in proportion to taluk wise in
proportion to the stora!e capacity
;2 ommunication ,llocated in proportion to the
workforce of pulic and private
separately
,llocated in proportion to taluk wise
workforce availale in 7conomic ensus
299*
;$ Trade) 8otel and
+estaurants
,llocated in proportion to the
workforce of pulic and private
or!anised separately
3rivate unor!anised will e allocated in
proportion to the district wise "TI
,llocate d in proportion to taluk wise
workforce availle 7conomic ensus
299*.
;% (ankin! and Insurance ,llocated in proportion to the
workforce
,llocated in proportion to taluk wise
workforce from 7conomic census or
5ead (ank of the district)
;* +eal 7state) Ownership of
Dwellin!s) (usiness and
5e!al Services
,llocated in proportion to the
workforce and dwellin!s
,llocated in proportion to taluk wise
workforce and dwellin!s
METHODOLOGY ADOPTED
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Sl.
No.
Sector/ Sub sector DDP TDP
;0 3ulic ,dministration ,llocated in proportion to the
workforce
,llocated in proportion to taluk wise workforce
; Other Services
7ducation ,llocated in proportion to the district
wise student enrolment
,llocated in proportion to taluk wise student
enrolment
&edical 8ealth ,llocated in proportion to the
workforce
,llocated in proportion to taluk wise workforce
+ecreation and 7ntertainment ,llocated in proportion to the district
wise workforce
,llocated in proportion to taluk wise
workforce
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NUMBER OF TALUKS IN DIFFERENT PER
CAPITA INCOME RANGE
35
Sl.
No.PCI Range 2004-05
2008-09 2004-05
2008-09
% share
Current
Prices
Constant
Prices
% shareCurrent
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
Statement Showin! &a4imum and &inimum TD3
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Sno Dist GDDP Ran# au#(A:
DP au#(IN
DP
14aga#ote ;4aga#ote 1=1+;?4iagi >@/=
+4angaore 1>> 14angaoreNort'
+@;+