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Capital Formation Division


What is Capital Formation ?

Capital formation equals fixed capital investment, the increase in the value of inventories held, plus (net) lending to foreign countries, during an accounting period.

Capital is said to be "formed" when savings are used for investment purposes, often investment in production.

Working Procedure :

This division prepares the estimates of Gross Fixed Capital Formation (GFCF). For the purpose of estimation of GFCF, the capital originated by Public and Private sectors within the geographical boundaries of the state has been taken into account. In Public Sector, the GFCF is estimated for Central and State Administrative Departments, Departmental Commercial Undertakings (DCUs), Local Bodies, Central Non-Departmental Commercial Undertakings (CNDCUs) and Supra-Regional Sectors. For preparation of the estimates, the Annual Account Report of the Departments/Sectors/DCUs/NDCUs is collected. The Annual Account Report is classifying purpose wise.Then publication is prepared after compiling and tabulation of the data.

Main activities/report published:

Collection of Annual Account Report of the Departments/Sectors/DCUs/NDCUs.

Analysis and preparation of publication of the Annual Account Report of Public sector units/undertakings of the State Collection, compilation and tabulation for preparation of publication “Estimate of Gross Fixed Capital Formation”.