DEFINITION

Gross Regional Domestic Expenditure (GRDE) is defined as the expenditure of resident institutional sectors of the region in the domestic territory plus their expenditures in other regions including the rest world.  This is intended to complement the current series of the Gross Regional Domestic Product (GRDP),    which is being prepared by the Economic and Social Statistics Office (ESSO) of the National Statistical Coordination Board (NSCB).

The first GRDE  estimates were prepared by the NSCB in 1987 covering the series 1975-1987.   The latest GRDE available is for 1996 and this series (1994-1996) now includes separate estimates for ARMM.  Estimation methods for CARAGA are currently under study and expenditure estimates for this region will be available in the immediate future.

COMPONENTS

The GRDE includes regional estimates on the following:

• Personal Consumption Expenditure (PCE)
• Government Consumption Expenditure (GCE)
• Gross Value in Construction
• Gross Domestic Capital Formation on Durable Equipment
• Gross Domestic Capital Formation in Breeding Stocks and Orchard Development
• Changes in Stocks
• Net Exports

DATA SOURCES

• PCE - National Statistics Office, Local Water Utilities Administration, Land Transportation Office, Bureau of Internal Revenue, Department of Energy, National Economic Development Authority Regional Office, RSCS
  
• GCE - Commission on Audit, Government Service Insurance System, Social Security System
  
• Construction - National Economic Development Authority, Department of Transportation and Communication, National Irrigation Administration, Department of Public Works and Highways, Philippine Ports Authority, National Electrification Administration, Local Water Utilities Administration, National Statistics Office
  
• Durable Equipment - National Statistics Office, National Power Corporation
  
• Breeding Stocks and Orchard Development - Bureau of Agricultural Statistics, Bureau of Animal Industry
  
• Changes in Stocks - Bureau of Agricultural Statistics, Department of Energy, National Statistics Office, Commission on Audit

CONSIDERATIONS

In using the GRDE for specific studies or analyses,    the following points should be considered: The GRDE estimation is based on the national aggregation of the national income accounts.  This is broken down by regions using various indicators.  Specifically,  the major expenditure items are estimated as follows:

• For Personal Consumption Expenditure (PCE),  the national estimate is distributed by region based on the structure of the Family Income and Expenditure Survey (FIES).   The final expenditures of non-profit institutions serving households,  which is included under PCE,  is the same as that of the household expenditure.
• For private construction at constant price,  regional distribution is based on the structure of the Building Permits data.  Private construction at current prices is estimated by inflating the regional constant price level by the regional consumer price index (CPI).  For public construction disaggregation by region is based on the regional breakdown of the infra program of NEDA and validated by the individual agencies' infra programs.  An under coverage ratio is applied for private construction which is assumed to be the same ratio across regions.
• The regional distribution for durable equipment is based on the results of the Annual Survey of Establishments (ASE) and the Census of Establishments (CE).  As such,   the estimates are affected by the limitations of these surveys.
• Estimates of the changes in stocks for non-agricultural industries use the ASE/CE for regional distribution.  Data for stocks in agriculture and government are readily available.
• The General Government Consumption Expenditure (GGCE) is estimated by region based on the data from the Commission on Audit (COA).

LIMITATIONS

• The latest GRDE available is for 1996 since estimates of some of the expenditure items rely on the results of the ASE and CE.   The latest CE is 1994 while the latest ASE is 1995.
• In the absence of data on regional trade flow,  net exports is derived as a residual item.   Hence,  net exports refer to the combined effect of the income flows between regions,  the commodity flows between regions and the rest of the world and statistical discrepancy.

Technical Notes

Population Projections for Cities and Municipalities
Gross Regional Domestic Product (GRDP)
Poverty Statistics