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    ESTIMATES OF DISTRICT /TALUK DOMESTIC

    PRODUCT AND ITS USE

    Directorate of Economics and Statistics

    Bangalore

    Karnataka

    1

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    2

    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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    3

    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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    5

    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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    6

    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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    7

    (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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    8

    (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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    9

    (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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    10

    (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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    11

    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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    12

    &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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    13

    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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    14

    (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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    15

    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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    16

    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$

    21

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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.

    22

    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>>

    23

    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>>

    24

    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(

    25

    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(

    26

    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.

    27

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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

    28

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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

    29

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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

    30

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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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    32

    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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    33

    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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    34

    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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    36

    Sno Dist GDDP Ran# au#(A:

    DP au#(IN

    DP

    14aga#ote ;4aga#ote 1=1+;?4iagi >@/=

    +4angaore 1>> 14angaoreNort'

    +@;+