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:
- What is the Household Consumption Expenditure Survey?
- Highlights of the Recent Household Consumption Expenditure Survey
- 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