ESTIMATES OF DISTRICT / TALUK DOMESTIC PRODUCT And its use
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Transcript of ESTIMATES OF DISTRICT / TALUK DOMESTIC PRODUCT And its use
ESTIMATES OF DISTRICT / TALUK DOMESTIC
PRODUCT AND ITS USE
Directorate of Economics and Statistics
Bangalore
Karnataka
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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”.
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 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
SCOPE AND COVERAGE
SDP / DDP excludes:o Defence personnel and other para-military
forceso Govt. offices abroado Foreign offices of LIC & GICo Bombay Offshoreo Deep sea fishing
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Concept
INCOME ORIGINATING concept is being adopted in the State
Sum total of the economic value of goods and services produced in the region.
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Division of Economy into Sectors Economy of the State is broadly classified into sectors in two ways
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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.
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Methods of Estimation Income is estimated in three ways
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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)
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Methods of EstimationMethods 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..o Gross Value Added (GVA) =
Value of Output (GVO) – Value of Inputo Agriculture (including horticulture and livestock),
Forestry, Fisheries, Mining and Quarrying and Registered Manufacturing
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Methods of EstimationMethods 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 & Profito GVA (Public) = Aggregate of factor incomes
(Compensation of Employees (CE) +Interest + Rent + Profits + Dividends) - Consumption of Fixed Capital
o GVA (Private) = Workforce X Value Added per Worker o CE = Salaries + Pension + PF + Welfare Expenseso all other sectors
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Methods of EstimationMethods of Estimation
EXPENDITURE (Consumption) method is based on the measurement of Income at the stage of disposal.o GVA = Gross Value of Output X (GVA/GVO)
ratios o Construction sector
At present all the three methods are followed to compute Gross State Domestic Product.
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Treatment of Prices
Income obtained by evaluating the current year’s product at current year’s prices is termed as INCOME AT CURRENT PRICES
Income obtained by evaluating the current year’s 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
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Financial Intermediation ServicesIndirectly 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
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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
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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)
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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
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Previous Base YearsPrevious 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
o First District Income Estimates of the State was prepared in the late seventies at DES for the year 1960-61 at Current Prices.
o Subsequently for the years 1970-71, 1975-76 and1980-81 during Eighties At Current Prices
o From 1980-81 and onwards district income were prepared both at Current and Constant Prices
o In 1999-2000 series the year wise and district wise DDP estimates were prepared and submitted to CSO
o Recently, DDP estimates from 2004-05 to 2008-09 in 2004-05 Series were sent to CSO
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District Domestic Product
o 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.
o 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.
o For State Human Development Reports o 1st released in 1999 and o 2nd released in 2005
o District income estimates were provided by DES 18
District Domestic Product
SECTOR WISE CONTRIBUTION OF STATE INCOME
State’s 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 (%)
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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
o 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.
o 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.
o Technical guidance has been provided by DES for preparation of taluk income estimates to Udupi district.
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District Domestic Product (Taluk wise)
ESTIMATES OF DISTRICT DOMESTIC PRODUCT (TALUK WISE)
o Karnataka is the first state in India to attempt to compute taluk wise domestic product estimates under KSSSP.
o At present, we have estimates up to the district levelo Taluk 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 backwardnesso Helps to calculate Human Development Index
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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.
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ESTIMATES OF DISTRICT DOMESTIC PRODUCT (TALUK WISE)
The first meeting of all CPOs has been held on 15.07.2011
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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
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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.
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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.
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ESTIMATES OF DISTRICT DOMESTIC PRODUCT (TALUK WISE)
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.
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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
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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
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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
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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 ConstructionPublic (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 PRIsFrom 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)
METHODOLOGY ADOPTED
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Sector/ Sub sector DDP TDP
8 Electricity, Gas and Water SupplyElectricity Allocated in proportion to the district
wise electricity consumptionAllocated 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 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
METHODOLOGY ADOPTED
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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 separatelyPrivate 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
METHODOLOGY ADOPTED
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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.
METHODOLOGY ADOPTED
NUMBER OF TALUKS IN DIFFERENT PER CAPITA INCOME RANGE
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Sl.No.
PCI Range 2004-052008-09 2004-05
2008-09 % share
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
5100000-150000 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
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Slno Dist GDDP Rank TalukMAX TDP Taluk
MIN TDP
1Bagalkote 604015 15Bagalkote 141269Bilagi 58734
2Bangalore 10550455 1Bangalore North
7286209Bangalore east
527727
3Bangalore Rural 641057 13Doddaballapur 223758Devanahalli 81439
4Belgaum 1624887 2Belgaum 464954Ramdurg 72885
5Bellary 1342684 4Sandur 627209HagariBommanalli 53569
6Bidar 570830 17Bidar 154788Aurad 499727Bijapur 422030 24Bijapur 184458muddebihal 63904
8Chamarajanagara 299763 29
Chamarajanagara 102614Yelandur 28429
9Chickballapur 418542 25Chintamani 101162Gudibande 1884110Chickmagalur 508845 21Chickmagalur 164734Sringeri 2064911Chitradurga 573597 16Chitradurga 180933Molkalmur 46985
12D.Kannada 1550194 3Mangalore 916525Sullia12632
313Davanagere 716929 10Davanagere 289777Jagalur 4775214Dharwad 1042383 6Dharwad 502003Kundgol 5639015Gadag 362527 28Naragund 154640Mundargii 45558
Statement Showing Maximum and Minimum TDP during 2008-09 current Prices (Rs in Lakh)
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Slno Dist GDDP Rank TalukMAX TDP Taluk
MIN TDP
16Gulbarga 698393 11Gulbarga 235202Afzalpur 69489
17Hassan 642291 12Hassan 164423Alur 26451
18Haveri 468711 23 Ranebennur 98376Byadagi 38299
19Kodagu 414654 26Virajpet 151542Somawarpet 122449
20Kolar 626657 14Bangarpet 190146Malur 85807
21Koppal 394691 27Koppal 138290Yelburga 63094
22Mandya 560353 18Mandya 116499Srirangapatanna 48001
23Mysore 1226836 5Mysore 635166K.R.nagar 77340
24Raichur 554276 19Raichur 164795Devdurga 61992
25Ramanagar 478015 22Ramangara 167227Magadi 63907
26Shivamogga 810716 8Bhadravathi 212182Thirthahalli 49930
27Tumkur 959911 7Tumkur 278153Koratagere 41231
28U.Kannada 530297 20Karwar 88909Supa 23724
29Udupi 733536 9Udupi 353374Karkala 166025
30Yadgir 169872 30Shahapur 156347Yadgir 125096
Statement Showing Maximum and Minimum TDP during 2008-09 current Prices (Rs in Lakh)
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District Taluk MAXPTDP Taluk MIN PTDP
Bagalkote Bagalkote 52125 Jamkhandi 23710
Bangalore Anekal 268480Bangalore east 42735
Bangalore Rural Doddaballapur 78876 Devanahalli 40093Belgaum Belgaum 52013 Raibag 24679
Bellary Sandur 299344 Hadagali 22826Bidar 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 50267Davanagere Davanagere 43879 Jagalur 27421Dharwad Dharwad 119802 Kundgol 32758Gadag Naragund 46362 Ron 22147
Statement Showing Maximum and Minimum Percapita Income (PTDP) during 2008-09 current Prices
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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 90370Somawarpet 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 61405Thirthahalli 31810
Tumkur Tumkur 49119 Koratagere 23372
U.Kannada Karwar 54850 Mundgod 26813
Udupi Karkala 73676 Kundapura 51765
Yadgir Shahapur 48599 Yadgir 35020
Statement Showing Maximum and Minimum Percapita Income (PTDP) during 2008-09 current Prices
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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.
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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.
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.
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Data problems and Suggestions -Usage of Common Business Register
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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
THANK YOU
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