13.12 Indicators Used for Allocating Estimates of Supra-Regional Sectors

  • Railways
    • The factor income namely, compensation of employees, interest and profit (including depreciation) at the national level are distributed among the zonal railways, in proportion to:
      • Total cost of staff excluding the cost of staff engaged in railway workshops (manufacturing) and artisans (construction),
      • Capital at charge, and
      • Net earnings, respectively.
    • Compensation of employees of Railway Board and zonal headquarters is allocated separately to the respective States on the basis of their location. Since the railway zones do not coincide with the State boundaries, a further allocation of zonal estimates becomes necessary. The value added for each zonal railway is divided into two parts namely, value added from passenger traffic and value added from goods traffic on the basis of zone wise data on passenger and goods earnings, respectively (available in the annual statistical statements of the Indian Railways). These estimates of value added from passenger traffic/goods traffic in each zone are then re-allocated among the States falling within each zone on the basis of information on vehicle kilometer per route per day or net tonne kilometer per route per day (available from Railway Board).
  • Communication
    • The gross estimates at the State level are prepared on the basis of detailed data collected from Department of Posts, Department of Telecommunication, VSNL & MTNL.
      • For Deptt. of Posts and Deptt. of Telecommunication, the all-India estimates of compensation of employees are distributed among postal/telecom circles on the basis of disbursement of wages and salaries of postal/telecom staff. The interest is allocated in proportion to the current circle-wise cumulative capital expenditure obtained by adding the current expenditure to the previous cumulative expenditure. The gross profit from post is distributed on the basis of salary and wages whereas gross profit from telecommunication is distributed in the ratio of circle wise net operating income of telecommunication only. Rent in both the cases is allocated in proportion to State-wise total number of post offices. Generally, the postal/telecom circles are co-terminus with the State boundaries. In those cases where the circle covers more than one State, allocation to the States is done on the basis of the number of workers within each State.
      • Statewise information in respect of OCS and MTNL is directly available.
      • Statewise CFC of communication is subtracted from the gross estimates to obtain the net estimates.
      • Constant price estimates are obtained by applying the all-India deflator uniformly on all States.
  • Banking & Insurance
    • The all-India estimates of compensation of employees are allocated to States on the basis of State wise data on distribution of employees in respect of commercial banks and the Life Insurance Corporation. The State-wise data on wages and salaries are obtained from the concerned organisations viz. (a) Banking Department of Reserve Bank of India, (b) Industrial Finance Corporation of India, (c) Unit Trust of India, and (d) Cooperative Societies. The State-wise allocation of operating surplus of these activities is done on the basis of data obtained from concerned agencies on relevant indicators, viz. Loans and advances (Commercial Banks and Industrial Finance Corporation of India), net premium income and sum assured (LIC), deposits (Banking Department of RBI), financial disbursements (UTI), investments and profits (Cooperative Credit Societies). For other activities covered under this industry, State-wise estimates are obtained by allocating the net value added by related indicators, viz. (a) paid up capital (for non-Banking Financial Companies), (b) commitments (for Agricultural Refinance Development Corporation), (c) Financial assistance utilised (for IDBI), (d) loans released (for NCDC), (e) gross collections under small saving schemes (for Post Office Saving Banks), (f) Business and property assessed to income tax (for fire insurance), (g) value of exports and re-exports (for marine insurance), (h) number of vehicles registered under Motor Vehicles Act (for miscellaneous insurance), (i) wages & salaries (PLI), and (j) State-wise expenditure incurred on provision of medical benefits (Employees State Insurance Corporations).
  • Central Government Administration
    • Estimates of net value added for Central Government Administration are prepared using the income approach, the compensation of employees being the only factor income. For current price estimates, the total salary & wages of Central Government Administration are taken from the budget documents from which the salary & wages of Defence, Offices Abroad, Para Military Forces, UT covered under Home Ministry Budget, Issue Deptt of RBI and Atomic Energy are subtracted and the balance is distributed among various States & UTs in the ratio of State-wise Central Government Employees (as have been once calculated in 1988-89). To these estimates of salary & wages, State-wise estimates of salary & wages in respect of Issue Deptt of RBI and Atomic Energy as available from RBI & budget documents respectively are added to get the final State-wise estimates of Salary & wages for Central Govt. Administration. The estimates of Central Government Administration at constant prices are made by deflating the current price estimates using the CPI (Industrial Workers).
    • The estimates of Gross Value Added are obtained by adding the CFC estimates for Central Govt. Administration at the all-India level and then distributing the all-India gross estimates to different States in the same ratio as net estimates. The CFC estimates for Central Government Administration are obtained from the CFC of Public Administration & Defence by applying the same ratio as the all-India NSDP of Central Government Administration to the NDP of Public Administration and Defence. This process is used for estimates at current prices as well as at constant prices.
Back to Top