Question : STATE DOMESTIC PRODUCT

(a) whether the Government propose to measure State Domestic Product and Per Capita State Income on income accrual basis, rather than on income generation basis;

(b) if so, whether remittances from abroad and from outside States are being taken into consideration while measuring State Domestic Product/Per Capita Income;

(c) if not, the reasons therefor;

(d) whether the Per Capita Income of a State or District measured through the current procedures is faulty economic indicator; and

(e) if so, the corrective steps being contemplated in this regard?

MINISTER OF STATE IN THE MINISTRY OF PLANNING, MINISTER OF STATE IN THE MINISTRY OF STATISTICS AND PROGRAMME IMPLEMENTATION, MINISTER OF STATE OF THE DEPARTMENT OF ADMINISTRATIVE REFORMS AND PUBLIC GRIEVANCES IN THE MINISTRY OF PERSONNEL, PUBLIC GRIEVANCES AND PENSIONS AND MINISTER OF STATE OF THE DEPARTMENT OF DISINVESTMENT (SHRI ARUN SHOURIE)

(a) to (c): The estimates of State Domestic Product (SDP) and Per Capita net SDP, known as Per Capita State Income, are compiled by the respective State Directorates of Economics & Statistics (DES) following the income generating approach only. For compiling these estimates on income accrual basis, reliable data are required on income inflow and outflow from the boundaries of a State which are not available.

(d) & (e): The methodology employed in compiling the Per Capita State Income based on the currently available databases is in accordance with the recommendations of the Regional Accounts Committee (RAC) and is consistent with national and international standards. There is, however, always scope for the improvement of the various statistics. The Government has established a National Statistical Commission headed by Dr. C Rangarajan to critically examine the deficiencies of the present statistical system with a view to recommending measures for a systematic revamping of the same, so as to improve the availability and quality of basic statistics.