Published on: August 6, 2021



What is in news : New Consumer Expenditure Survey (CES) is likely to be conducted in 2021-22

Background : The Government has decided not to release the results of the all-India household Consumer Expenditure Survey (CES), conducted during 2017-18, due to data quality issues.

What is the present status of poverty in India:

Consumer Expenditure Survey

  • Time Interval: Traditionally, a quinquennial (recurring every five years) survey conducted by the National Sample Survey Office – NSSO (comes under the National Statistical Office), Ministry of Statistics and Programme Implementation.
  • Scope:
    • Collects information on the consumption spending patterns of households across the country, both urban and rural.
    • Information Generated
      • Reveals the average expenditure on goods (food and non-food) and services.
      • Helps generate estimates of household Monthly Per Capita Consumer Expenditure (MPCE) as well as the distribution of households and persons over the MPCE classes.
    • Significance in General
      • Helps in calculating the demand dynamics of the economy.
      • Helps in understanding the shifting priorities in terms of baskets of goods and services, thus provides pointers to the producers of goods and providers of services.
      • To assess living standards and growth trends across multiple strata.
    • Significance for Policymakers
      • Analytical as well as a forecasting tool which helps the Government in planning required interventions and policies.
      • Spot and address possible structural anomalies that may cause demand to shift in a particular manner in a specific socio-economic or regional division of the population.
      • Rebase the Gross Domestic Product (GDP) and other macro-economic indicators.