Question : INCOME ACCRUAL APPROACH IN MEASURING PER-CAPITA INCOME



(a) whether income accrual approach has not been adopted in measuring per-capita income of a State/Union Territory;

(b) if so, the details thereof and the reasons therefor;

(c) whether remittances and bank transfer from abroad and other States are also not taken into account while measuring per-capita average income in a State;

(d) if so, the details thereof and the reasons therefor;

(e) whether any research has been conducted to find out correct per-capita average income of State and Union Territories;

(f) if so, the details thereof;and

(g) if not, whether the Government propose to enlarge researchers for calculating correct per-capita average income of a State/Union Territory ?

Answer given by the minister

MINISTER OF STATE IN THE MINISTRY OF PLANNING, MINISTRY OF STATISTICS AND PROGRAMME IMPLEMENTATION, DEPARTMENT OF ATOMIC ENERGY AND DEPARTMENT OF SPACE (S.B. MOOKHERJEE)

(a) The income accrual approach has not been adopted in measuring per-capita income of a State/Union Territory.

(b) It has not been possible to adopt the income accrual approach for want of information on net inflow of factor incomes from other States as well as from abroad.

(c) Remittances and bank transfer from abroad and other States are not taken into account in this computation.

(d) These flows have no relevance in the income originating approach.

(e) The methodology adopted by the states for compiling the estimates of States Domestic Product, which forms the basis of computation of per capita average income of State/Union Territory, is based on the recommendation of the Regional Accounts Committee constituted for the purpose.

(f) As explained in (e) above.

(g) No, Sir. The methodology currently followed gives a fair assesment of the per capita average income of a State/Union Territory.