Untitled Document

The Gross Fixed Capital Formation in Assam at current prices increased from Rs.10723crores in 2003-04 to Rs.12810 crores in 2004-05 and to Rs14177crores in the year2005-06. The percentage of Gross Fixed Capital Formation to Gross State Domestic Product at current prices increased from 22.72% in 2003-04 to 24.96% in 2004-05 and then decreased to 24.61% in 2005-06.

During the period of reference, Gross Fixed Capital Formation in both public and private sectors increased in absolute terms. In relative terms, the share of public sector which was 46.05% in 2003-04 increased to 49.14% in 2004-05 and to 49.62% in 2005-06. The private sector share was 53.95% in 2003-04and 50.86% in 2004-05 and which has remained more or less same in the following year.

The Gross Fixed Capital Formation of the primary sector decreased from 24.14% in 2003-04 to 22.53% in 2004-05 and to 22.15% in 2005-06. In case of secondary sector, GFCF increased from 33.73% in 2003-04 to 39.04% in 2004-05 which then decreased to 31.12% in 2005-06. The Tertiary Sector contribution was 42.12% in 2003-04 which decreased to 38.43% in 2004-05 which further increased to 46.74% in the following year. So far as the individual sectors are concerned Manufacturing (Registered & Un-Registered) contributed the highest amount whereas Forestry and Storage contributed the lowest to GFCF in 2003-04 and the same trend continued in the following year also.

The estimates of Gross Fixed Capital Formation provide an assessment of the addition to capital base of the Economy and consequent change in the modes and capacity of production. These estimates are among the important statistics required for taking policy decisions in resource mobilisation, allocation of resources and assessing the growth potential of the Economy.

The Central Statistical Organisation at the National Level prepares estimates of Gross Fixed Capital Formation and publishes them in National Accounts Statistics Report every year.

The Government of India had set up a committee on Regional Accounts in 1972. The committee in its final report (1976) suggested the concepts, scope/ coverage of Gross Fixed Capital Formation in the context of estimation at the State level and gave a broad out line of the methodology of estimating the Gross Fixed Capital Formation by following the expenditure approach.

The sub-groups on State Gross Domestic Product and Expenditure Accounts (1984) set up by the Central Statistical Organisation in their report provided inter-alia methodological notes on “Scope, Coverage and Method of Estimation of Fixed Capital Formation at State Level" the report as approved by the Advisory Committee was forwarded to the State Directorate of Economics & Statistics in July, 1986 for implementation. In the light of that recommendation, thereafter estimates covering all the sectors was prepared and published by this Directorate up to 2002-03 and this publication is the fifth in the series.

The present estimates of Gross Fixed Capital Formation (GFCF) in Assam covers the period 2003-04 to 2005-06. These estimates have been prepared by type of institutions (i.e., by public and private sector) and by type of Industry at current and constant (1999-2000) prices only.

While working out the present estimates, the latest methodological approach suggested by CSO has been made use of as far as possible.

The United Nations Statistical office has defined the Domestic Capital Formation as "that part of country's current output and imports which are not consumed or exported during the accounting period but are set aside as addition to its stock of capital goods". All goods produced for use in future productive process, such as :

Building and other construction works,
Plant Machinery and other equipments,
Stocks of raw materials, semi-finished and finished goods are classified as "Capital goods".

The Gross Fixed Capital Formation consists of the outlays of the industries and the producers of Government Services and private non-profit services to house holds in addition to their fixed assets, reduced by their net sales (sales less purchases) of similar second hand and scrapped goods. The outlays on durable goods like land mineral deposits; timber tracts, etc. are not included for the purposes of estimation of GFCF. Similarly, construction work and durable goods, which are meant primarily for military purposes, are also excluded.

THE ESTIMATES OF GFCF HAVE BEEN PREPARED FOR THE FOLLOWING "TYPES OF ASSETS"

1. CONSTRUCTION
(a) Buildings :: Buildings include residential and non-residential structures. All expenditure on new constructions and major alterations to residential and non-residential buildings including all costs of permanent fixtures has been treated as capital expenditure. Non-residential buildings include buildings and structures, which are entirely or primarily used for industrial and commercial purposes e.g., industrial buildings, office buildings, farm buildings, hotels etc.

ROADS & BRIDGES: Expenditure on new construction and major alterations of roads & bridges and culverts are included under this head.

on sewers, parking facilities, pipelines, electricity transmission lines, telephone and telegraph lines, dams, spillways, drainage works, irrigation works, forestation, land reclamation, plantation which take more than half a year to become productive etc.

Plant and Machinery: This item covers all expenditure incurred on acquisition of new power generating machinery, agricultural machinery, tools and implements used in departmental and non-departmental enterprises. All expenditure on office machinery equipments and instruments has also been covered under this item. Expenditure incurred on major alterations and improvements in such above machinery and equipments are also included.
Transport Equipment:: It includes expenditure on transport equipments, motor car, trucks, commercial vehicles, etc., outlays on major alteration and improvements in existing transport equipments.

Under type of Institution, public and private sectors are considered separately for estimation of GFCF. Public sector is further classified as State and Central Government (I) Administrative department (II) Departmental Commercial Undertakings (III) Non-departmental Commercial Undertakings and (IV) Local Bodies. Private sector includes Household sector and Private Corporate sector also.

State / Central Government Administrative Departments comprise Government Departments and their offices whose function is to organize for the community, but not normally to sell those common services which can not otherwise economically be provided.

The Departmental Enterprises are incorporated enterprises owned, controlled and run directly by public authorities. These enterprises normally do not hold or manage financial assets and liabilities apart from their working balances and business accounts payables and receivables. These enterprises charge for the goods and services they provide on commercial basis. The enterprise cover under this category is: Railways.

Non-Departmental Commercial Undertakings are those which produce goods and services for sales etc. They are Government companies in which the State / Central Government holds not less than 51% of the paid-up share capital and Statutory Corporations set up under special enactments of the Legislature / Parliament.

Type of "Industry of Use" considered for preparation of estimates of "GFCF" are ::

Agriculture and Allied activities.
Forestry and Logging.
Fishery
Mining and Quarrying
Manufacturing
Construction
Electricity, Gas and Water supply
Transport, Storage and communication
8.1 Railways 8.2 Storage 8.3 Transport by other means. 8.4 Communication
Trade, Hotel and Restaurant
Banking and Insurance
Real Estate, Ownership of Dwellings, Business Services and Legal Services.
Public Administration
Other Service

INDUSTRY	SOURCE OF DATA	METHODOLOGY
1. Agriculture	1. Assam Government Budgets 2. Assam Agro-Industries Development Corporations. 3. Assam Minor Irrigation Development Corporation 4. Assam Seeds Corporation 5. Assam Plantation Crops Development Corporation Ltd.	1. Analysis of Government Budget documents. 2. Analysis of Annual accounts of the said Organisations.
2. Animal Husbandry & Veterinary	1. Assam Government Budget 2. Assam Livestock and Poultry Development Corporation Ltd.	1. Analysis of Government Budget documents. 2. Analysis of Annual accounts of the said Organisations.
3. Forestry	1. Assam Government Budgets	Analysis of budget documents of Government of Assam.
4. Fishing	1. Assam Government Budget 2. Assam Fisheries Development Corporation	Analysis of budget documents of Government of Assam and annual accounts of said organisation.
5. Mining & Quarrying	1. Assam Government Budget 2. Assam Mineral Development Corporation Ltd. 3. Assam Petro-Chamicals Ltd. 4. ONGC, Nazira 5. OIL India Ltd, Duliajan 6. Coal India, Margherita 7. IBM, Nagpur	-Do-
6. Manufacturing (Regd)	1. Assam Small Industries Development Corporation Ltd. 2. Assam Gas Company Ltd. 3. Assam Industrial Development Corporation Ltd. 4. Assam State Fertilizer Ltd. 5. Assam Tea Corporation Ltd. 6. Assam State Textile Corporation Ltd. 7. Assam Spun Silk Mills Ltd. 8. Ashok Paper Mills Ltd. 9. Budget, Government of Assam 10. BRPL, Dhaligaon, Bongaigaon 11. HPCL, Jagiroad, Hailkandi	-Do-

7. Manufacturing (Un-Registered)	In this sector, public sector units are considered to be negligible. So it is not counted in the estimation of public sector units.
8. Electricity, Gas & Water Supply	1. ASEB, Guwahati 2. NEEPCO, Shillong 3. Gas Authority of India, Duliajan 4. Assam Govt. Budgets	-Do-
9. Transport by other means and Storage	1. Assam Government Budgets 2. Assam State Transport Corporation 3. Assam State Ware Housing Corporation 4. Central Ware housing Corporation	-Do-
10. Banking & Insurance	1. Central Statistical Organisation (CSO)	CSO
11. Communication	1. Central Statistical Organisation (CSO)	CSO
14. Trade, Hotel & Restaurant	1. Food Corporation of India Ltd. 2. State Trading Corporation of India Ltd. 3. STATEFED, ARTFED, Assam Govt. Marketing Corporation.	Analyzing the Annual Accounts of the side by side mentioned Organizations.
15. Real Estate, Ownership of dwellings, business services and legal services.	1. Assam Government Budgets	Analyzing the budget document of Government of Assam.
16. Public Administration	1. Assam Government Budgets 2. CSO, Govt. of India 3. Budget, GP, MP etc.	Analyzing the budget document of Govt. of Assam etc.
17. Other Services	1. Assam Government Budgets	Analyzing the budget document of Government of Assam.

PRIVATE SECTOR

INDUSTRY	SOURCE OF DATA	METHODOLOGY
1. Agriculture (a) Reclamation of Land, building and other land improvement.	1. All India Debt and Investment Survey (AIDIS), 2002-03 2. Directorate of Soil Conservation, Assam	Estimates of the Bench Mark year 2002-03 are based on AIDIS; 2002-03 estimates are moved with the help of Whole Sale Price Index and with the Index of area under Soil Conservation.
(b) Orchards and Plantations	1. AIDIS, 2002-03 2. Directorate of Agriculture, Assam	To arrive at the estimate, the area under fruits Crops is used as indicator and then it is moved forward and backward by price Index (Agricultural Laborers Index).
(d) Farm Houses, Barns, Animal Sheds and others.	1. AIDIS, 2002-03 2. Annual Crop Estimation report, Govt. of Assam.	The bench mark year 2002-03 estimates are moved with the help of combined Index of Agricultural Production and then with WPI (Whole Sale Price Index).
(e) Agricultural Implements, machinery and Transport Equipment etc.	1. AIDIS, 2002-03 2. Live Stock Census, 1988 and 1982 conducted by the Animal Husbandry and Veterinary Department, Government of Assam.	Estimate on this subject at current prices is carried forward by the inter-censual growth rate of the items and then with suitable prices indices.
(f) Private Corporate Sector regarding Agriculture.	Tea Companies	Estimated from schedules return by the Tea Companies following the expenditure method.
II. Animal Husbandry	Live Stock Censuses 1997and 2003 conducted by Animal Husbandry and Veterinary Department, Government of Assam.	The value of increment in Live Stock is worked out by evaluating the increment in number of animals, such as breeding stock, dairy cattle etc., based on Live Stock Censuses 1997 and 2003 and then by corresponding Prices supplied by CSO.
III. Forestry	It is mainly owned by PUBLIC. Privately owned part is considered to be negligible.
IV. Fishing	1. Live Stock Censuses, 1997 2. Directorate of Fisheries, Assam	Number of mechanized boats, non-mechanized boats and other fishing equipments in each year have been evaluated by the Growth rate of no. of fishing beels’ area of the years under reference and then with suitable Price Index.
V. Mining & Quarrying	It is mainly by PUBLIC, Privately owned part is considered to be negligible and is estimated to be 5% only.
VI(a). Manufacturing (Regd.)	1. ASI Report for 2003-04,2004-05 2. Directorate of Industries, Govt. of Assam.	Data available in the ASI Report.
VI(b). Manufacturing (Un- Registered)	1.NSS SURVEY Results 2. Directorate of Industries, Govt. of Assam.	Bench Mark year estimate have been moved forward with the combined index of IIP and WPI.
VIII. Construction	1. NSS Report 2. All India Whole Sale Price Index Numbers. 3. PWD, Assam	Bench Mark year estimate, have been moved forward on the basis of annual average growth rate observed between the length of pucca roads and building under PWD of last 5 years and then with Whole Sale Price Index.
IX. Electricity, Gas & Water Supply	Mainly owned by PUBLIC bodies. Private part in Assam is considered to be negligible and 5% is taken in to account.
X. Transport by other means	1. Enterprise survey, 2002-03for both mechanized and non-mechanized transport. 2. UNME Index, (Transport sub-group).	Bench mark year estimate, based on enterprise survey, 1993-94 (for both mechanized and non-mechanized) moved forward with the help of growth rate of no. of motor vehicles on road during 2003-04 to 2006-07 and then with UNME Index (Transport Group).
XI. Railways, Banking & Insurance, Communication	Owned by PUBLIC
XII. Trade, Hotel & Restaurant (a) Trade (b) Hotel & Restaurant	1. Directory of Trade Establishment Survey, 1996-97 2. NSS 46th round result for unorganized trade. 3. All India Whole Sale Price Index, BCC Index, UNME Index (Transport Group) etc. 1. Enterprise Survey, 2003-04 for Hotel and Restaurant. 2. WP Index, BCC Index, 3.UNME Index (Transport Group) etc.	. The Bench Mark year have been moved with the help of Index of GROSS TRADING INCOME and then with respective Price Indices. -Do 2. Organized trade Hotel & Restaurant, all India estimate is broken as per DGET survey report
XIII. Real Estate etc.	1. All India Debt and Investment Survey, 2002-03 2. BCC Index. 3. NABARD Bank Survey Report on Co-operative Establishments.	The Benchmark have been moved with the help of Index number of residential houses Urban / Rural as per two consecutive censuses growth rate and then with the help of Building Construction Cost Index.
XIV. Public Administration	Wholly owned by PUBLIC
XV. Other Services	Enterprise Survey, 1991-92	Other services has two parts (I) Un-recognized and (II) Recognized. Now for un-recognized part the bench mark year GFCF has been moved with the help of growth rate between consecutive survey reports, 1991-92 and 2002-03 and then with WPI Index. Now, from unrecognized GFCF, recognized GFCF for other service has been worked out by multiplying suitable ratio. Sum total of recognized and unrecognized GFCF gives us the estimate of other service (Pvt.)