The most well known and widely used measure for the performance of a state is the estimates of State Domestic Product. It is defined as the money value of all goods and services produced during a specified period within the geographical boundary of a state regardless of the fact whether factors of production are owned by person living inside or outside the state. The estimates of State Domestic Product (SDP) are regarded as effective instruments to measure the growth and structural changes in the economy of the state. The first publication of the SDP of Manipur was brought out in the month of January 1966 with 1960-61 as the base year. The 1960-61 series is followed by 1970-71 and then 1980-81 series. Now a new series has been introduced with 1993-94 as the base year.
The SDP can be viewed from three inter-related angles viz., in terms of production, income and expenditure. The methodology followed in arriving the estimates of SDP of Manipur is mainly according to the guidelines laid down by the Central Statistical Organisation (CSO), Government of India, depending on the nature and availability of data of the sectors and sub-sectors. The methodology and principles adopted by the CSO is based on the Systems of National Accounts (SNA) suggested by the Statistical Office of the United Nations. In order to estimate the SDP of Manipur, the entire economic activity is broadly classified into three major sectors viz., Primary, Secondary and Tertiary which altogether comprises of thirteen sub-sectors. The estimates of SDP are prepared both at current and constant prices. The estimates at current prices are obtained by evaluating the products at prices prevailing during the year. The estimates so derived, over the years, do not reveal actual economic growth because these includes the combined effect of the changes in the volume of goods and services as well as the changes in the prices of goods and services. In order to project a picture of real economic growth or depict the overall real increase/decrease in the production of the state, the goods and services are evaluated at the prices prevailed in a particular fixed year known as base year.These estimates are known as estimates at constant prices.
The new series of National Accounts Statistics (NAS) with 1993-94 as the base year was released by the CSO on the 3rd of February, 1999. In order to facilitate the preparation of the estimates of SDP by the State Directorate of Economics and Statistics corresponding to the New Series, a workshop on ‘New Series on National Accounts Statistics’ was organised by the CSO during 23-24 March,1999 at New Delhi. The workshop was attended by the representatives of all the State Directorate of Economics and Statistics. Keeping on the line of discussion had in the workshop, the Directorate of Economics and Statistics, Manipur has prepared the New Series at current/constant prices with 1993-94 as the base year.
Conventionally, the base year is shifted decennially to a year in which decennial population census has been conducted as the data on working force have been obtained from the population census. However, in the New Series, the base year has been revised to 1993-94. In the present revision exercise, the CSO has mainly been guided by three considerations, namely, (i) revision of base year to a more recent year for a more meaningful analysis of the structural changes in the economy, (ii) complete review of the existing data base and methodology employed in the estimation of various macro-economic aggregates including choice of alternative databases on individual subjects and (iii) to the extent possible implementing the recommendations of the 1993 SNA prepared under the auspices of the Inter Secretariat Working Group on National Accounts comprising of the European Communities (EUROSTAT), International Monetary Fund (IMF), Organisation for Economic Co-operation and Development (OECD), United Nation and World Bank. The fact that the NSSO in its quinquennial survey on Employment and Unemployment have been able to capture the activity of people much better than the population census, particularly those of females led the CSO to adopt for the first time the work force estimates based on NSS work force participation rates from the 1993-94 (50th Round) survey results. This has been one of the main reasons to choose 1993-94 as the base year for the estimation of National Accounts Statistics in the New Series.
An important feature of the New Series is the allocation of Imputed Banking Charge (IBC) or Financial Intermediation Service Indirectly Measured (FISIM) to user industries viz., agriculture, livestock, forestry, fishing, mining and quarrying, manufacturing, electricity and gas, transport, construction, storage, trade, hotels and restaurants, business services and other services as intermediate input. The FISIM is the income of banking and financial enterprises which is equivalent to interest and dividend receipts net of interest paid to depositors. Since the banking and insurance sub-sector falls in the supra-regional sector, the state-wise estimates of FISIM are estimated by the National Accounts Division, CSO, and supplied to the States. The total FISIM allocated to Manipur is distributed to different user industries of state, in proportion to the respective sectoral Gross State Domestic Product ( GSDP). It may be mentioned that for the four supra-regional sectors viz., Railways, Communication, Banking and Insurance and Public Administration ( Central ) covering multi-unit establishments whose operation extend over a number of states, the annual estimates are prepared by the CSO. The estimates for the remaining sectors, as presented in this publication, are prepared by the State Directorate basically based on the guidelines of the CSO. However, there are certain areas where departures are to be resorted to due to the nature of the database available hitherto. From the estimates of GSDP for the different sectors, the CFC is deducted to arrive at the estimates of NSDP. The CFC estimates are prepared by the CSO on the basis of estimates of gross fixed capital stock for each type of assets available over a sufficiently long period. Consumption of fixed capital is a cost of production. It may be defined in general terms as the decline, during the course of the accounting period, in the current value of the stock of fixed assets owned and used by a producer as a result of physical deterioration, normal obsolescence or normal accidental damage. It excludes the value of fixed assets destroyed by acts of war or exceptional events such as major natural disasters.