Household Consumption Expenditure Survey UPSC NOTE

  Why in News For the first time in about 11 years , the government on Saturday released the broad findings of the All India Household Consu...

 Why in News

• For the first time in about 11 years, the government on Saturday released the broad findings of the All India Household Consumption Expenditure Survey carried out between August 2022 and July 2023.

• The data will play a key role in reviewing critical economic indicators, including the Gross Domestic Product (GDP), poverty levels, and the Consumer Price Inflation (CPI).

• The Household Consumption Expenditure Survey (HCES) is conducted by the National Statistical Office (NSO) every five years. 

• However, findings of the last survey, conducted in 2017-18 soon after the demonetisation of high-value currency notes and the implementation of the GST, were never released after the government cited “data quality” issues.

Household Consumption Expenditure Survey

• The HCES is a large-scale survey conducted in India by the Ministry of Statistics and Programme Implementation (MoSPI). 

• It aims to collect data on the spending patterns of households across the country.

Purpose:

• Estimates household expenditure: The primary purpose is to estimate the Monthly Per Capita Consumption Expenditure (MPCE) for different categories, including:

1. Rural and urban sectors

2. States and Union Territories

3. Socio-economic groups

4. Provides insights into living standards

5. Level of living

6. Social consumption

7. Well-being

8. Inequalities within these aspects

Data Collection:

• Frequency: Conducted typically every five years.

• Method: Data is collected through personal interviews using Computer Assisted Personal Interviewing (CAPI).

• Validation: Collected data undergoes rigorous scrutiny and consistency checks to ensure accuracy.

Recent Findings (2022-23):

• Increase in rural spending: Average monthly rural expenditure per person rose significantly (164%) compared to urban areas (146%) between 2011-12 and 2022-23.

• Narrowing urban-rural gap: The difference in MPCE between rural and urban households decreased from 83.9% in 2011-12 to 71.2% in 2022-23.

• Variations across income groups: The survey also highlights the significant disparity in expenditure between the bottom 5% and top 5% of both rural and urban populations.