Page 116 - niengiam2022

EXPLANATION OF TERMINOLOGY, CONTENT AND
METHODOLOGY OF SOME STATISTICAL INDICATORS ON
GROSS REGIONAL DOMESTIC PRODUCT, STATE BUDGET,
BANKING AND INSURANCE

GROSS REGIONAL DOMESTIC PRODUCT

Gross regional domestic product (GRDP) is the value of final
physical products and services produced in provinces/cities under the central
government over a given period of time. At the level of provinces/cities
under the central government, GRDP is calculated by production approach.
Accordingly, GRDP is the sum of the value added at basic price of all
economic activities plus taxes on products less subsidises on products.
Value added (VA) is an economic indicator reflecting the new value of
goods and services that was produced in an economy in a given period. VA, a
component of gross output, is the difference between gross output and
intermediate consumption. Value added is measured at current and constant
price.

The basic price is the amount receivable by the producer through sale
of goods or services produced exclusive of taxes on products and inclusive
of subsidies on products. It excludes transport and trade margins invoiced
separately by the producers.

Value added is computed at the basic price. GRDP is always valued at
the purchaser’s price.
GRDP is calculated at current and constant prices.

GRDP by current prices is used to study the economic structure, the
inter-industries relationship, relationship between the production results and
Sate budget mobilization.

GRDP by constant prices removing the factor of price changes is used
to calculate the economic growth rate in the locality and to study the
changes in goods and services quantities.

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