METHODOLOGY FOR PREPARATION OF
DISTRICT INCOME ESTIMATES
The
methodology for preparation of District Income estimates very much depends on
availability of basic data at district level. There data available at the
District level is not satisfactory for estimation of income at the district
level. Nevertheless, the data in respect of Primary Sector is fairly sound, but
appears to be very scanty in respect of remaining sectors. Therefore the
district level data could be utilized to the extent of its availability to
compute the district income estimates adopting the state level methodology. In
the case of non-commodity producing sectors, where the district wise basic data
are not available, the State level estimates are allocated to the districts on
the basis of suitable district wise indicators. Further, in some of the
commodity producing sectors, though the district wise production data are
available, the corresponding prices may not be available. In such cases,
district wise production and State average prices will have to be utilized for
preparation of district income estimates. Apart from this, wherever certain
ratios, norms, yield rates etc., are used for the State level estimates and
which are normally not available at the district level, the State level ratios,
yield rates etc., will have to be used for district income estimates.
Sector wise details of methodology
for preparation of Gross District Value Added (GDVA) are given below
1)
CROPS
As
in the Crop Sector district level data on production and prices are generally
not available uniformly for all the crops, hence for estimation purpose, crops
can be classified in different categories as follows:
i. Crops for which district-wise data on area, production and
prices are available: District-wise value of output for each crop is worked out
using district-wise production and prices. Average wholesale prices as
collected for principal crops barring some other minor crops like small
millets, other pulses, other oilseeds, sun-hemp, Mesta, etc. from defined peak
marketing period are used with the production for the purpose of valuation.
ii. Crops for which district-wise production is available but
corresponding prices are not available: In such cases state weighted average
prices are used for valuation. Using CSO norms, district level prices of small
millets, other pulses and other oilseeds are used for preparing district level
estimates.
iii. Crops for which district-wise data, both on production and
prices are not available but area is available: In such cases, district- wise
value of output is worked out by allocating the state level value of output on
the basis of district-wise area of the crops. Value of by-product of different
crops is calculated by multiplying corresponding area of crops to prices
provided by CSO. In case of kitchen garden 0.21 percent of net area sown of
corresponding districts multiplying by value per hectare of fruits &
vegetables except other fruits and vegetables.
iv. Miscellaneous and unspecified crops: The crops for which
neither production nor prices are available even at the state level but
district-wise area is available, the value of output is worked out with the
help of district-wise area and state level value per hectare.
Value of Inputs: As
at the state level estimates, to arrive at the district wise Gross Value Added
(GVA) from Crop sector, value of various input items are to be first deducted
from the Gross Value of Output (GVO) of this sector and then the gross product
from operation of Government Irrigation System is added to that. The deductible
inputs are same as used at the State level viz.
i) Seed,
ii) Organic manure
(Cattle and Buffalo dung),
iii) Chemical Fertilizers
iv) feed of livestock,
v)
Pesticides & Insecticides,
vi) Diesel oil consumption
vii) electricity,
viii) Irrigation charges,
ix) market charge,
x) Repairs and Maintenance of
fixed assets and other operational costs and
(xi) FISIM.
To work out the value of these input items
at the district level, the state level estimates arrived at independently under
the Current series of state income estimates are distributed to various
districts in proportion to district wise Gross Value of Output (GVO) of crop
sector.
2)
LIVESTOCK
Similar procedure as
adopted at the state level may be followed at the district level also.
District-wise estimates of no. of different categories of animals and poultry
is worked out from the results of latest three livestock census assuming
linear/compound growth rates and utilized along with relevant yield rates to
obtain the estimates of production of various livestock products and
by-products and poultry meat. The study provided ratio of meat products and
meat by-products to total meat produced in terms of value and quantity for each
species of livestock, percentage share of value of meat products and meat
by-products to total value of meat has been used in estimation of value of
total output of meat. Estimation of Dung by including Sheep and Goat droplets.
i. The results of Integrated Sample Survey (ISS) conducted by
State Animal Husbandry Department provide State/District level data on
production of milk, meat, wool and egg. It also provides estimates of category
wise number of slaughtered animals. Wherever, ISS results are available only
for the State, the estimates for district may be obtained by allocating the
same to the districts on the basis of relevant livestock population. To
estimate district-wise production of all other items (i.e. other than milk,
meat, egg and wool), state level yield rates and ratios are utilized along with
district estimates of number of relevant animals/poultry.
ii. District-wise value of output may then be worked out by
evaluating the production obtained as above, by the corresponding district
prices, wherever available. In the absence of district level prices, the state
prices are utilized for evaluating the district production. The total of the
value of output thus worked out is adjusted to the state level estimates.
iii. In case of other animal products, the state level value is
distributed between the districts in proportion to the number of animals of
each category separately.
iv. District-wise increment in stock for each category of
animal/poultry is worked out as at the State level value is distributed between
the districts in proportion to the district wise number of animals of each
category separately.
Value of Inputs: As
at the state level estimates, to arrive at the district wise Gross Value Added
(GVA) from livestock sector, value of various input items are to be first
deducted from the Gross Value of Output (GVO) of this sector.
3)
FORESTRY AND LOGGING
The
estimates of State Domestic product from forestry sector are prepared by
following the production approach except in case of fuel wood for which
consumption approach is applied. State level estimates of this sector are
distributed in the ratio of district-wise forest area to arrive at the
estimates of districts. The
value of output of major and minor forest products is added and 16.2 per cent
of this is considered as cost of repairs and maintenance. This is to be
deducted from GVO to get GVA.
4)
FISHERIES
The
value of output is worked out by multiplying the production by prices of inland
fish, along with value of subsistence fish @ 12.5 percent of value of inland
fish and added. Wherever, the district wise prices are not available, then
district wise value has to be worked out using district wise production and state
level prices in which case, state level prices are to be obtained. The
operational costs including repairs and maintenance, i.e., @ 10 percent of
value of inland fish and one percent of value of subsistence fish is to be
deducted as inputs from gross value of output to get GVA.
5)
MINING AND QUARRYING
The
gross value of output is to be estimated on the basis of value of major and
minor minerals. For both major & minor minerals, the district wise value of
output is collected from the state Mines and Geology Department. The state
value is allocated among district separately for major minerals, minor
minerals, sand and petroleum as below:
Major Minerals: The district wise value of output of
major minerals is added up to allocate the state value.
Minor Mineral: The district wise value of output of
major minerals is added up to allocate the state value.
Sand: The value of sand is allocated among districts on the
basis of one third part sale value of kankar bajri in districts.
Petroleum & Natural Gas: The value allocated among
districts on the basis of production and royalty obtained petroleum department.
The unadjusted GVA of all four is then added and input cost
and FISIM is deducted to get GVA.
6)
MANUFACTURING (ORGANISED
AND UN-ORGANISED)
The
Annual Survey of Industries (ASI) is the only comprehensive source of data for
the registered manufacturing sector. However, ASI provides estimates for the
manufacturing establishments only, and therefore, does not provide any
estimates for trading and other activities that may be provided elsewhere by
the enterprise. Therefore, the services carried out by the manufacturing
enterprises were not adequately covered in the ASI. In the new series,
estimates have been derived using the annual accounts of Non Departmental
Enterprises (NDE), Private corporate sector from MCA data base and
quasi-corporations as covered by ASI, apart from the Departmental Enterprises
(DEs), like Railway Workshops, GOI Printing Press and Ordnance Factories. The
effective labour input method has been used for compilation category wise
estimation of GVA of unincorporated manufacturing enterprises from the NSS 67th
round Survey on Unincorporated Enterprises, 2010-11 and NSS 68th round
Employment Unemployment Survey, 2011-12. MCA21 database not availability of the
districts level for district-wise estimates, the State level estimates of this
sector are distributed among the districts in the proportion of district-wise
labour input (work force) from ASI report.
7)
ELECTRICITY, GAS, WATER
SUPPLY & OTHER UTILITY SERVICES
i. Electricity: The State level estimates
of GVA for electricity are allocated to the districts on the basis of number of
technical and non-technical workers in electricity sector in the respective
districts.
ii. Gas: In case of Gas sub-sector,
the State level GVA distributed to districts according to the district wise
population of cattle.
iii. Water Supply & Other
Utility Services: The State level estimates of GVA from water supply & other utility
services have been bifurcated among districts on the basis of working force
engaged in water supply & other utility services, obtained from the 6th
Economic census.
8)
CONSTRUCTION
Estimates
of Gross Domestic Product for construction sector are worked out by following
expenditure approach. For estimation purpose, construction sector is divided
into public, supra-region, household and residual parts which are as under:
i. Public &
Supra-Regional: Public sub-sector includes Central government administration &
Departmental Commercial Undertakings (DCU’s), State government administration
& DCU’s, NDCU’s (Central & State). State’s GVA of above sub-sectors are
allocated on the basis of working force engaged in construction activities
obtained from 6th Economic Census. Supra – Regional sub-sector consist of
Railways which is allocated among the districts on the basis of number of
railway stations obtained from the study on Railway Sector by State DES.
ii. RRBs, URBs, NRBs,
Plantation and Other Household: construction activities undertaken by the household
sector (both rural and urban), State level estimates are allocated among the
districts in the proportions of projected number of houses separately for urban
and rural areas. For non-residential building and other construction
activities, it has been distributed among the districts on the basis of average
of number of houses urban and rural houses. State level estimates of Plantation
and Other Household are allocated to district wise working force engaged in
construction activity obtained from 6th economic census.
iii. Residual: State level GVA including quasi
government is supplied by CSO. It is distributed among the districts in the
proportion of working force engaged in construction activities.
Thus,
the estimates arrived separately as above are aggregated at the district level
to provide estimates of district domestic products from construction
activities.
9)
TRADE, HOTELS AND RESTAURANTS
To
estimate District Domestic product of this sector, Gross value added at state
level is to be allocated in proportion of number of persons employ in trade
obtained from sixth economic census.
10)
RAILWAY
The
State level GVA of this sector is supplied by the CSO which was allocated to
the districts in proportion of railway stations in the old base series. This
indicator was inappropriate and did not give true picture of a district. For
estimation of the district income The Directorate of Economics and Statistics
conducted a study on railway sector and obtained district wise gross salary of
workers employed in railway sector. Now in the new base year the GVA is
allocated among various districts in proportion of district wise gross salary
of workers employed in railways.
11)
TRANSPORT BY OTHER MEANS THEN RAILWAYS
a) Road Transport:
(i)
Public Sector: District
wise working force of RSRTC employees obtained from their annual report.
(ii)
Private Sector: The
value added from private sector is allocated to the districts on the basis of
district wise commercial vehicles registered in the district obtained from
Transport Commissioner.
GVA
is obtained by adding public and private sector estimates.
b) Water Transport: It is Nil in the state.
c) Air Transport: The State Income from
this sub-sector is allocated to the districts in 20:80 ratio where 20 per cent
is equally allocated to the districts with airports and remaining 80 per cent
is allocated to all the districts having airports on the basis of number of air
passengers.
d) Services incidental to transport: The State Income from this sub-sector is allocated to the districts on the basis district wise combines GVA of road and air transport.
From
the gross value added obtained by adding all [(a) to (d)] FISIM is to be
deducted to get final GVA.
12) STORAGE
State level estimates are
allocated to districts on the basis of Occupancy of state and central
warehousing Godwans situated in the district.
13)
COMMUNICATION AND SERVICES RELATING TO
BROADCASTING
Estimates
of State level GVA are allocated among various districts in proportion of
number of persons engaged (Working Force) in communication services in the
districts which was obtained from the 6th Economic Census.
14)
FINANCIAL SERVICES
In the Old base the state level estimates were allocated to
the districts in proportion to total credit and deposits in each district and
in Insurance the State level estimates were allocated in proportion to
employment in insurance sector which were inappropriate indicators. For
estimation of the district income The Directorate of Economics and Statistics
conducted a study on banking sector. Now in the new base year the GVA is
allocated among various districts in proportion of district wise gross salary of
workers employed in banking and insurance sector.
15)
REAL ESTATE, OWNERSHIP OF DWELLINGS &
PROFESSIONAL SERVICES
To
prepare the District Domestic Product of this sector allocation method is used.
The cooperate part of state level GVA is distributed on the basis of District
wise work force obtained from 6th Economic census. The
Un-incooperate part distributed on the basis of District wise work force
obtained from 68th round of NSS and ownership of Dwelling
distributed on basis of Number of Household.
16)
PUBLIC ADMINISTRATION
To
obtain the District level estimates, State level data is allocated in
proportion of number of State Government employees in the districts. No. of
state Government Employees in Districts is obtained from the publication
‘Census of State Government Employees’ published by DES.
17)
OTHER SERVICES
The
economic activities covered under this sector are as under:
i. Educational Services,
ii. Medical & Health Services,
iii. Membership of Organizations not elsewhere classified,
iv. Recreational services,
v. Washing and Cleaning,
vi. Hair Dressing,
vii. Tailoring,
viii. Funeral activities,
ix. Private House Hold and
x. Extra Territory services.
The
District wise estimates of these sub activities are based on allocation method.
The Education services, Medical services and others are estimated separately.
For
allocate the cooperate part of state level education sector, district wise
gross value added obtained from the survey conducted by Directorate of
Economics and Statistics was used.
For
remaining the state level estimates of cooperate part is in these services are
distribution on the basis of District wise work force obtained from 6th
Economic Census.
For
Un-incooperate part of all the three sectors distributed the ratio based on
district wise workforce obtained from 68th round of NSS is used.
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