Gross Domestic Product etc - 24

CONCEPTS AND DEFINITIONS OF
STATE AND DISTRICT DOMESTIC PRODUCT

Introduction

3.1 The state accounts statistics are an extension of the system of national
accounts to the regional level. These comprise various accounts indicating
the flows of all transactions within a time period between the economic
agents constituting the state economy and their stocks. They include items
like total output of the economy, the intermediate expenditure, state domestic
product, factor incomes, consumption expenditure, capital formation, capital
stocks, consumption of fixed capital, etc. The most important aggregate of the
state accounts is the state domestic product (SDP). At district level, the
maximum that the State DESs can compile at present, given the data
availability position, is the district domestic product (DDP).

3.2 State Income (Net State Domestic Product/NSDP) and District Income
(Net District Domestic Product/NDDP) is defined in exactly the similar manner
as the net domestic product for the country, i.e. it is equal to the income
generated by the production of goods and services within the geographical
boundaries of a State or a district, as the case may be. This is arrived at by
netting the gross state/district domestic product estimates (GSDP/GDDP) by
the consumption of fixed capital (CFC).

3.3 The SDP/DDP at factor cost is regarded as the most important single
economic indicator to measure the growth and pattern of economic
development of a state or a district. The per capita NSDP and the per capita
NDDP, respectively represent the welfare and level of living of the normal
residents of a state and district. These measures also provide an idea of
regional disparities. The indicators like per capita state income are now
frequently used by the Planning Commission (PC) and Finance Commission
(FC) for devolution of a part of plan resources and distribution of proceeds
central taxes to different states.[Reproduced from CSO Publication]

Concepts and Definitions, in the next post