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