GDP/GNA CALCULATION AND FORMULAE

Base year of National Accounts is periodically revised to account for the structural changes that have taken place in the economy over time and to depict a better picture of the economy through macro-economic aggregates like Gross Domestic Product (GDP), National Income, consumption expenditure and other related aggregates and indicators. This enables users to assess performance of the economy in real terms by estimating the macro-economic aggregates at the prices of the selected year, known as “base year”. The estimates at the prevailing prices of the current year are termed as “at current prices”, while those prepared at base year prices are termed as “at constant prices”. Comparison of the estimates at constant prices, i.e. “in real terms”, over the years gives a measure of “real growth”. After introduction of the new series of National Accounts (Base 2011-12), back-series estimates of National Accounts Statistics (NAS) are compiled and released for the years preceding the new base year for completeness and comparability with old base data sets. The present release gives a snapshot of domestic product, capital formation (at industry/item level) and other macro-economic aggregates till the year 2004- 05, as per the new series of NAS with base year 2011-12. 







FORMULAE USED:
1. GVA at basic prices = CE + OS/MI + CFC + Production taxes less Production subsidies

2. GDP = ∑ GVA at basic prices + Product taxes - Product subsidies

3. NDP/NNI = GDP/GNI - CFC

4. GNI = GDP + Net primary income from ROW (Receipts less payments)

5. Primary Incomes = CE + Property and Entrepreneurial Income

6. NNDI =NNI + other current transfers from ROW, net (Receipts less payments)

7. GNDI = NNDI + CFC = GNI + other current transfers from ROW, net (Receipts less payments)

8. Gross Capital Formation (GCF) = Gross Savings+ Net Capital Inflow from ROW

9. GCF = GFCF + CIS + Valuables + “Errors and Omissions”

10. Gross Disposable Income of Govt. = GFCE + Gross Saving of General Government

11. Gross Disposable Income (GDI) of Households = GNDI – GDI of Govt. – Gross Savings of all Corporations

REMARKS ON THE FORMULAE:
1. Production taxes or subsidies are paid or received with relation to production and are independent of the volume of actual production. Some examples are: Production Taxes: Land Revenues, Stamps and Registration fees Production Subsidies: Subsidies to Railways, Subsidies to village and small industries

2. Product taxes or subsidies are paid or received on per unit of product. Some examples are: Product Taxes: Excise Tax, Sales tax, Service Tax and Import and Export duties Product Subsidies: Food, Petroleum and fertilizer subsidies

3. Other Current Transfers refers to current transfers other than the primary incomes

4. Estimate of Gross Capital Formation (GCF) derived from the formula 8 above is taken as the “firmer” estimate and the difference between this estimate and the sum of GFCF, CIS and valuables is taken as “errors and omissions”, mentioned in formula 9 above