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Household Consumption Expenditure Survey

Context:

Recently, the detailed report of Household Consumption Expenditure Survey (HCES) 2022-23 was released by Ministry of Statistics and Programme Implementation (MoSPI).

Relevance:

GS III: Indian Economy

Dimensions of the Article:

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

What is the Household Consumption Expenditure Survey?

  • Conducted by:
    • The Household Consumption Expenditure Survey (HCES) is carried out by the National Statistical Office (NSO) every five years.
  • Purpose:
    • It aims to collect data on household consumption of goods and services.
  • Usage:
    • The collected data helps derive various macroeconomic indicators such as Gross Domestic Product (GDP), poverty rates, and Consumer Price Index (CPI).
  • Calculation:
    • The average Monthly Per Capita Consumer Expenditure (MPCE) is calculated at 2011-12 prices.
  • Coverage:
    • The survey includes the entire Indian Union, excluding some inaccessible villages in the Andaman and Nicobar Islands.
  • Previous Survey:
    • The last HCES conducted in 2017-18 was not released due to concerns over data quality.
  • Information Provided:
    • It provides insights into typical household spending on goods (food and non-food items) and services.
    • It also assists in calculating MPCE and analyzing the distribution of households and individuals across different MPCE categories.

Highlights of the Recent Household Consumption Expenditure Survey

  • Food and Beverages:
    • Beverages, Refreshments, and Processed Food are major parts of food expenditure, especially in Tamil Nadu, with the highest spending percentages in both rural (28.4%) and urban (33.7%) areas.
  • Milk and Milk Products:
    • High expenditure in states like Haryana (rural 41.7%, urban 33.1%) and Rajasthan (urban 33.2%).
  • Egg, Fish, and Meat:
    • Kerala has the highest spending in this category, in both rural (23.5%) and urban (19.8%) areas.
  • Food Expenditure:
    • Food accounts for about 46% of total household consumption expenditure in rural areas and 39% in urban areas.
  • Non-Food Expenditure:
    • Significant shift towards higher spending on non-food items, rising from 40.6% in 1999 to 53.62% in 2022-23 for rural areas and from 51.94% to 60.83% for urban areas during the same period.
  • Top Non-Food Expenditures:
    • Conveyance: Highest in Kerala for both rural and urban settings.
    • Medical Expenses: High in Kerala, West Bengal, and Andhra Pradesh for rural areas; and West Bengal, Kerala, and Punjab for urban areas.
    • Durable Goods: Highest spending noted in Kerala in both rural and urban settings.
    • Fuel and Light: Significant spending observed in West Bengal and Odisha.
  • State-wise Variations:
    • Spending preferences vary across states, reflecting cultural and regional economic differences.
  • Increase in Consumption Expenditure:
    • There has been a significant increase in consumption expenditure over the past decade.
    • Rural monthly consumption per person increased by 164% from 2011-12 to 2022-23, while urban monthly consumption per person grew by 146%.
    • The rural MPCE has grown faster compared to the urban sector.
    • The gap between urban and rural MPCE has decreased from 90% in 2009-10 to 75% in 2022-23.

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: Indian Express


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