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All India Household Consumption Expenditure Survey

Context:

Recently, the Ministry of Statistics and Program Implementation disclosed the general results of the All India Household Consumption Expenditure Survey conducted from August 2022 to July 2023.

Relevance:

GS III: Indian Economy

Dimensions of the Article:

  1. Highlights of the Recent Household Consumption Expenditure Survey
  2. National Statistical Office (NSO)

Highlights of the Recent Household Consumption Expenditure Survey:

Survey Overview:

  • Conducted every 5 years by the National Statistical Office (NSO).
  • Aims to gather information on household consumption of goods and services.
  • Utilized for deriving macroeconomic indicators like GDP, poverty rates, and Consumer Price Inflation (CPI).

Poverty Reduction:

  • NITI Aayog reports a decline in poverty to 5% based on the latest consumer expenditure survey.

Data Quality Issues:

  • Findings from the 2017-18 survey were not released due to “data quality” concerns.

Monthly Per Capita Consumer Expenditure (MPCE):

  • Urban households show a 33.5% increase (₹3,510), while rural households exhibit a 40.42% rise (₹2,008) since 2011-12.

Expenditure Distribution:

  • In 2022-23, 46% of rural and 39% of urban household expenditure is on food items.
  • The top 5% of rural and urban populations have the highest average MPCE, reaching Rs. 10,501 and Rs. 20,824, respectively.

State-Wise Analysis:

  • Sikkim has the highest MPCE in rural (₹7,731) and urban (₹12,105) areas.
  • Chhattisgarh records the lowest MPCE in rural (₹2,466) and urban (₹4,483) households.

Among the UTs, 

  • MPCE is the highest in Chandigarh (Rural Rs. 7,467 and Urban Rs. 12,575).
  • It is the lowest in Ladakh (Rs. 4,035) and Lakshadweep (Rs. 5,475) for rural and urban areas respectively.

Rural-Urban Disparities:

  • Meghalaya shows the highest rural-urban difference in average MPCE (83%).

Trend Analysis:

  • Share of expenditure on food has gradually declined since 1999-2000.
  • Share of non-food items has increased, indicating improved incomes for other expenditures.
  • Spending on cereals and pulses within food consumption has reduced.
  • Conveyance dominates among non-food items.

Fuel and Light Spending:

  • Until 2022-23, fuel and light traditionally saw the highest consumption spending among non-food items.

National Statistical Office (NSO):

  • Formation:
    • Established in 2019 by merging the Central Statistical Office (CSO) and the National Sample Survey Office (NSSO).
  • Origins:
    • Proposed by the C. Rangarajan Committee as the central body for core statistical activities.
  • Administrative Placement:
    • Operates under the Ministry of Statistics and Programme Implementation (MoSPI).
  • Functions:
    • Collects, compiles, and disseminates accurate, unbiased, and pertinent statistical data.

-Source: The Hindu


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