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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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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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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The first meeting of all CPOs has been held on 15.07.2011

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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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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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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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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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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 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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Sl. No.


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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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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Sl. No.


16 Public Administration Allocated in proportion to the 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


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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ESTIMATES OF DISTRICT / TALUK DOMESTIC PRODUCT And its use

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