System of regional accounts for India – Exploring alternative approach

The System of National Accounts is based on a sound logic useful for decision making, but it is so complicated that (a) it is difficult to compile even by most of the developing countries, (b) it is going away from most of the specialized institution/subject matter Ministry involved in decision making and economic plan formulation, and (c) a large amount of data which is being collected and compiled by other specialized agencies remains away from the System. In the present paper a System of Regional Accounts having links with National Accounts has been proposed that makes an attempt to remove these limitations. The proposed system includes a set of accounts supported by an indicator system. The System would be utilizing most of the data collected by user agency to support its’ need. It would provide macro-micro linkage to facilitate making policies according to ground realities and would be showing its magnitude at the macro (country/state/region) level.