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104 THE JOURNAL OF INCOME AND WEALTH State Income estimation from some of the major States, CSO and other organizations. The main task assigned to them was to review the work done by the State Directorates of Economics and Statistics (DESs) with a view to formulating standard concepts and definitions and recommend standard methodologies. The Group was also asked to specify the major data gaps and necessary ways and means to bridge them. www.IndianJournals.com Members Copy, Not for Commercial Sale Downloaded From IP - 115.248.73.67 on dated 29-Nov-2010 All the States and Union Territories (except Dadra and Nagar Havel, Daman and Diu and Lakshadweep) now compile State Income estimates at current and constant prices. All the states compiling SDP estimates follow by and large the concepts, procedures and databases as well as base years for constant prices, same as those adopted at the national level. However, due to differences in the imputations done at all India level and at state level (for example, the value added per worker), and multiplicity of data supplying agencies in the state (for example agriculture data), the SDP estimates do not add up to the GDP estimates. However, the difference between the two is about 5 per cent. The CSO undertakes compilation of comparable estimates of State Domestic Product each year for the use of the Planning Commission and the Finance Commissions. One area, where the availability of data for preparation of National Accounts aggregates all along been highly unsatisfactory is the statistics of local bodies and non-departmental undertakings (NDCUs) of the state governments. In pursuance to the recommendation of the fourth Conference of Central and State Statistical Organisations, a Working Group was set up in March 1980 with representation from RBI, Department of Company Affairs, Planning Commission, DES’s, Department of Agriculture and Co-operation and CSO to (i) examine the data requirements of all concerned departments and draw up formats for collection of relevant statistics from local bodies and non-departmental undertakings of state governments and (ii) formulate the approach to be adopted and recommend an action plan indicating changes, if any, required in the infrastructure. The group in its report submitted in November 1981 recommended that (i) in all the states, where arrangement for consolidation of statistics from the annual statements of receipt and expenditure exist, the scope of the work should be extended so as to cover all items of the statements in the aggregation (ii) where the consolidation work is not being done presently, it should be taken up on a priority basis (iii) DESs should be responsible for the work of collection and consolidation of the statistics in respect of the urban and rural local bodies established under state statutes and (iv) DESs should also collect and process the financial statistics pertaining to the non-departmental undertakings of state governments preferably following the methodology adopted by the RBI for its studies on corporate finances. The position with regard to the accounts of local bodies and NDCUs is that NDCU accounts are compiled separately and included in the NAS, while estimates of local bodies are included in the overall accounts of administrative departments. XIV. Regional Accounts A Committee on Regional Accounts, under the Chairmanship of Prof. M. Mukherjee, was appointed in 1972 which worked during 1972-76. Besides recommending standard methodologies, it also recommended a set of eighteen standard tables to be prepared by all states. The tables covered, besides domestic product, all the important macro-economic aggregates like fixed capital formation, current consumption expenditure, transactions of public sector and indicators of regional development. In its Final Report the committee also
COMPILATION OF NATIONAL ACCOUNTS STATISTICS IN INDIA 105 recommended the appropriate frame-work of regional accounts. The State DESs follow the recommendations of the Committee in their endeavor to improve the regional accounts statistics. www.IndianJournals.com Members Copy, Not for Commercial Sale Downloaded From IP - 115.248.73.67 on dated 29-Nov-2010 XV. Indian Participation in International Comparison Inter-country comparison of level of economic growth is generally done in terms of per capita income in US dollar using official exchange rates. This, however, is not a satisfactory method as the exchange rate is not always a valid indicator for measuring the purchasing power of currencies. The UN Statistical Office, in collaboration with the University of Pennsylvania, USA undertook a project “International Comparison Project (now Programme)-ICP” with the primary objective of evolving a suitable methodology for establishing a system of comparisons of real product and Purchasing Power Parities (PPP) of different countries. In Phase I of ICP six countries participated in 1967 and 10 countries in 1970. In Phase II of the project 10 countries participated in 1970 and 16 in 1973. In Phase I and II both binary and multilateral comparisons were carried out. In Phase III the comparison on similar lines were made for the year 1975 in which 34 countries participated. The countries were classified into regional groups and comparison was also made with a base country within the region. India was chosen as base country for ESCAP comparison. From Phase IV, in which 60 countries participated for the reference year 1980, regional comparisons were carried out. For Phase V wherein 64 countries participated, core country concept was introduced for linking the results of regional comparisons to obtain the results of world comparison. India was one of the core countries in Phase V in the ESCAP region. The results of all the five phases have been published. Currently Phase VI of the ICP is on in which core commodity approach has been proposed in place of core country approach of Phase V, for linking the regional results. This project is of particular interest to the developing countries wherein a large number of transactions take place in non-monetary terms which are not always evaluated and taken account of in national income estimation as contrasted to similar transactions in the developed countries. India did not participate in Phase VI. In VIIth Phase, 155 countries are participating. The Purchasing Power Parity Preliminary Report of the 2005 International Comparison Programme in Asia and the Pacific has just been (July 2007) brought out by the Asian Development Bank. XVI. Input-Output Transactions Tables An input-output transactions table (IOTT) which describes the productive process of the complete economic system in a unified way, is an important analytical tool for analysing the structure of production in the economy. IOTT is part of the integrated system of national accounting. The Statistical Office, Department of Economics and Social Affairs, United Nations, has brought out a Technical Manual (Series F No.40, Rev.I) indicating details about construction of IOTT and the various problems of input-output analysis. The construction of IOTT was initiated in India in the early fifties. The first inter-industry table for India was prepared by M. Mukherjee for 1949-50 in 1953 which was subsequently published in Sankhya in 1954. This table had only 4 sectors and was arrived at by allocating by industries the costs of various industrial sectors using information contained in the “First
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