HOUSEHOLD CONSUMPTION
EXPENDITURE SURVEY - REPORTS AND INDICES
News: Household Spending Doubled
Since Last Decade, Non-Food Expenses On Rise: Data
What's in the news?
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In a significant reflection of the country's
economic progress, the per capita
monthly household consumption expenditure (MPCE) has more than doubled from
2011-12 to 2022-23, according to the latest Household Consumption Expenditure
Survey (HCES).
Key takeaways:
●
Based on data collected from 2,61,746 households
(1,55,014 in rural areas and 1,06,732 in urban areas) across all states and
Union Territories, the report highlights key
changes in consumption patterns, underscoring the country's evolving
socio-economic landscape.
All India Household
Consumption Survey:
●
The Household Consumption Expenditure Survey (HCES)
is conducted to gauge household spending
habits.
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It provides crucial insights into household
consumption patterns, their living standards and overall well-being.
Conducted by:
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It is conducted by the National Sample Survey
Office (NSSO), which now comes under
the National Statistical Office in the MoSPI.
Interval of the Survey:
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It is a quinquennial
survey (recurring every five years).
Backdrop:
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The survey has been conducted every five years, since 1972-73.
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The survey results were junked in 2017-18 due to
‘data quality issues’.
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Now, new surveys are being conducted in 2022-23 and
2023-24, according to new methodology.
New Methodology:
In the new methodology, several new features have been introduced such as
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Segregation of the consumption basket into three broad categories - food items, consumables and services, and durable goods.
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Inclusion of questions seeking inputs on free items and subsidies under welfare
schemes, such as foodgrains.
Key Findings of the
Survey:
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Key findings include a notable increase in household spending, with a 33.5% rise in urban MPCE to
₹3,510 and a 40.4% increase in rural MPCE to ₹2,008 since 2011-12.
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Increase in average monthly per capita consumption expenditure.
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Decline in the share of expenditure on food in both rural and urban
households.
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The spending
on high-value nutritional items (eggs, fish, meat, fruits and vegetables)
has increased more in rural
households as compared to urban households over the last two decades.
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Decline in the real growth rate of rural spending.
Impact on Government
Policies:
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The findings from the survey can influence
government policies in several ways, including adjustments to welfare schemes,
recalibrations of the Consumer Price Index (CPI) to reflect current spending
patterns, and strategic planning for poverty alleviation programs.
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It provides a data-driven
basis for policy formulation and adjustment.