NEWS – Household Consumption Expenditure Survey (HCES) for 2022-23 was released

HIGHLIGHTS

• What is HCES : Survey designed to collect information on household purchases of goods and services
• How often is it conducted: quinquennial – recurring every five years
• Who conducts the survey : National Statistical Office
• Why is the survey conducted : Helps to understand consumption and expenditure patterns, standard of living, and the well-being of households + utilised to derive various other macroeconomic indicators + reveals the average expenditure on goods (food and non-food) and services
• The last survey on consumer expenditure was conducted in the 68th round (July 2011 to June 2012)

2022-23 SUMMARY

• For the period August 2022 to July 2023.
• It highlights the data of per capita consumption expenditure (MPCE)
  • Urban area – Rs 3510 – a rise seen of 33.5% since 2011-12
  • Rural India – Rs 2008 – Increase of 40.42%
  • Does not include the estimated values of things people get for free through social welfare programs like the PM Garib Kalyan Ann Yojana (PMGKAY) or state-run schemes + but included a few non-food items received through such schemes, including computers, mobile phones, bicycles, and clothing
  • The difference in average MPCE between rural and urban households has narrowed to 71.2 per cent in 2022-23 compared with 83.9 per cent in 2011-12 – rural consumption spending has risen more than urban consumption
  • Bottom 5 per cent of rural population – Rs 1,373
  • Bottom 5 per cent of urban population – Rs 2,001
  • MPCE of top 5 per cent of rural population is 7.65 times more than its bottom 5 per cent
  • MPCE of top 5 per cent of urban population has an MPCE of over 10 times its bottom 5 per cent
  • Highest in Sikkim for both rural (₹7,731) and urban areas (₹12,105)
  • Lowest in Chhattisgarh, where it was ₹2,466 for rural households and ₹4,483 for urban household members.
• Share of expenditure on food – 46 per cent (Rs 1,750), and in urban India was 39 per cent (Rs 2,530) in 2022-23 v/s 52.90 per cent in rural India and 42.62 per cent in urban India in 2011-12
• Consumption expenditure on non-food items Consumption expenditure on non-food items in both rural India (54%) and urban India (61%) was mainly driven by a rise in share of spending on conveyance, consumer services, durable goods in 2022-23 as against 2011-12