s.c malik, director monojit das, deputy director ministry of statistics & programme...

S.C Malik, DirectorMonojit Das, Deputy Director

Ministry of Statistics & Programme Implementation

INDIA

measure in monetary terms of all the commodities (goods and services) produced without duplication within a given period of time

value terms

counted without duplication

226-28th March, 2012- Beijing, China

Three alternative approaches1. Production Approach

Measured at the point of production

2. Income Approach Measured at the point of income generation

or at the point of final utilisation

3. Expenditure Approach Measured at the point of final utilisation or

consumption Can be measured in any one of

these Better if measure by all for a

complete analysis of the economy326-28th March, 2012- Beijing, China

Income available is used up in the form of final consumption or saving or capital formation

GDP = PFCE + GFCE + GFCF + CIS + Export - Import

GCF = GFCF + CIS

(PFCE: Private Final Consumption Expenditure, GFCE: Government Final Consumption Expenditure, GCF: Gross Capital Formation, GFCF: Gross Fixed Capital Formation, CIS: Change in Stocks, Ex: Exports, Im: Imports)


Current Series Base Year 2004-05 (2009)

Previous series base years1948-1949 (1956)1960-1961 (1967)1970-1971 (1978)1980-1981 (1988)1993-1994 (1999)1999-2000 (2006)


Annual National Accounts Statistics Quarterly GDP estimates Back series of NAS (one year after new

series is introduced) Sources and Methods (one year after

new series is introduced) Input-Output Transactions Table (5-

Yearly) State-wise value of output of crops

and livestock products626-28th March, 2012- Beijing, China

Release Date of release

1. Advance Estimates of national income 7th February

2. Revised Estimates of national income 31st May3. Estimates of GDP for Q1 (Apr-Jun) 30th September4. Estimates of GDP for Q2 (Jul-Sep) 30th November5. Estimates of GDP for Q3 (Oct-Dec) 28th February6. Estimates of GDP for Q4 (Jan-Mar) 31st May 7. Quick Estimates of national income 31st January


1955-59: Income & Expenditure Survey (Rounds 9-14)

Schedule 1.1, specially designed for Income & Expenditure surveys, canvassed in Rounds 9-14

Approach to assessment of income: Collect data on Receipts and Disbursements of the household


9

Framework of Receipts & Disbursements block (Sch.1.1: Framework of Receipts & Disbursements block (Sch.1.1: Income & Expenditure, NSS 10Income & Expenditure, NSS 10thth round) round)

Receipts Disbursements

A.Current account of enterprise

A.Current account of enterprise

B. Liquidation of assets B. Capital formation

C. Transfer receipts C. Domestic expenditure

D. Transfer payments

• very detailed block with 78 items of receipts and 78 items of disbursements.• It was stipulated that the total receipts and total disbursements should tally


10

19th to 25th rounds of NSS (1964-1971)

Data on receipts and disbursements of the household were collected in an Integrated Household Survey schedule.

the receipts and disbursements blocks were placed after detailed blocks on household consumer expenditure.

however, the receipts and disbursements blocks were much more condensed, with only 16 items each.


11

Experiences of Integrated Household Schedule

The reporting of consumption expenditure could be affectedaffected by by collection collection of data on income and savings from the same from the same household.household.

Also, the integrated approach to data collection on income, expenditure and savings from the same household necessarily led to a long questionnaire, long questionnaire, causing informant fatigue.informant fatigue.

Substantially lower estimates for consumer expenditurelower estimates for consumer expenditure were obtained during the 19th to 24th rounds (in which the Integrated Household Survey schedule was canvassed).


12

Objective

Development of an appropriate methodology for conducting comprehensive surveys of household income


13

Draw up two schedules. Sch.1.1A: Income Sch.1.1B: Consumption and Savings

Divide sample households into 3 sets.

Set I households: Canvass Sch.1.1A (Income)Set II households: Canvass Sch.1.1B

(Consumption & Savings)Set III households: Canvass both Sch.1.1A & 1.1B


14

Set of hhs Schedule canvassed

Data collected Estimate of income generated

Set I Sch.1.1A Income (Y) Y

Set II Sch.1.1B Consumption (C), Saving (S)

C+S

Set III Sch.1.1A, Sch.1.1B

Income (Y)Consumption (C), Saving (S)

YC+S


15

Sample size100 villages and 80 urban blocks (Total) A sample of 24 households (three matched sets of 8 households each) were selected for survey from each sample village/block.

All estimates were generated for three sectors of population: rural (R), urban non-metropolitan (U-NM), and metropolitan (M).


16

Sl. No. Source of income1. Agriculture and allied activities2. Non-agricultural household

enterprises3. Wages and salaries4. Rent, dividend and interest5. Other sources


17

Sl. No.

Component of savings

1. Savings in physical assets in agriculture and allied pursuits

2. Savings in physical assets in self-employment in non-agriculture

3. Net addition to stock of products of cultivation4. Net addition to stock of products of mining and

manufacturing5. Net addition to stock of livestock and poultry6. Savings in housing (residential plot & building)7. Savings in financial assets


18

Annual disposable income (in INR) per household: R: 5,100 U-NM: 9,900 M: 16,500

Over 10% of hhs in metropolitan cities had annual Y or C+S exceeding (in INR) 30,000.

But negative incomes (Y) were occasionally reported;

in rare cases, C+S was negative.

The difference (C+S)-Y was SMALLER (in % terms) for wage/salaried households than for the rest.

Among non-wage/non-salaried households, the difference (C+S)-Y was LARGER (in % terms) for cultivator households than for other households.


19

Rural sector (R) From Set III hhs (both Y and C+S data collected), av.(Y) was 30% less than av.(C+S).av.(Y) was 30% less than av.(C+S). Using Y from Set I hhs and C+S from Set II hhs, av.(Y) was 40% less than av.(C+S).av.(Y) was 40% less than av.(C+S).These differences were very clearly significant.

Urban sector (both U-NM and M) Here Y and C+S were nearly equal and the small differences were not significant.


20

Overall ratio S/(C+S): R: 16-17% U-NM: 10% M: 15%

considerable doubt on the data on savings collected in the considerable doubt on the data on savings collected in the survey, especially from the non-metropolis urban sector. survey, especially from the non-metropolis urban sector.

The savings ratios S/Y and S/(C+S) were negative, if not zero, for the poorest households in all three sectors.

there was concentration of savings in the upper per capita income brackets.


21

The design of schedules of enquiry could be improved.

Informants tended to report large liabilities incurred (especially loans taken) without reporting the asset formation that would be expected to have taken place in the same period.

More alertness was needed in fieldwork to detect such under-reporting.

it also revealed the problems of respondent resistance These have noticed over time

Pilot survey suggested that further full-scale pilot surveys were needed for arriving at a satisfactory methodology for household income surveys.

However, no further surveys on income have been conducted since then.


s.c malik, director monojit das, deputy director ministry of statistics & programme...

Documents

estimates of gdp

income expenditure surveys

assessment of income

point of income generation

china income available

capital formation gdp

items of receipts

total receipts