Ramit Mehrotra, Pune
The average per capita household consumption expenditure for a month (MPCE) between rural and urban areas is reduced to 71.2% in 2022-2023 from 83.9% in 2011-12, as per the latest Household Consumption Expenditure Survey 2022-23, published by the Ministry of Statistics and Programme Implementation (MoSPI). The data will be instrumental in measuring the key economic indicators, such as Gross Domestic Product (GDP), poverty levels and Consumer Price Inflation (CPI).
The data shows rural households have a sharp tick in expenditure on consumer goods than urban households, in the past 11 years. The report illustrates a drastic rise in rural expenditure to Rs. 3, 773 monthly in 2022- 23 from Rs. 1,430 individually, marking a 164% increase compared to a 146% increase in expenditure patterns in 2011-12. The government did not release the consumption data in 2017-18, citing “data quality issues.”It rejected claims of withholding the data, as it had weak consumption trends.
In the past decade, expenditure on food has reduced to 46% from 53% for rural consumers and the urban spaces shrunk their consumption to 39% from 43%. People are spending less on cereals, rice and wheat, and more on beverages, and fast food products. Apart from reduced expenditure on food, there is an increased expenditure on commute, services and appliances such as fridges and air conditioners.
As per the records, the average monthly per capita expenditure has spiked to 33.5% since 2011-12 in urban spaces to Rs. 3, 510, and rural areas’ MPCE observed a growth of expense to 40.42%. The drop in consumption numbers does not factor in the food items received, for free of cost to individuals via PM Garib Kalyan Ann Yojna (PM GKAY), for state-sponsored schemes, which are calculated separately, including non-food items such as mobile phones, computers, bicycles, and clothing.
The average MCPE rates were marginally higher when the numbers ard complied while ducking healthcare and education expenses, at Rs. 2, 054 for rural households and Rs. 3, 544 for urban households. The factsheet published by the Ministry of Statistics and Programme Implementation, that a detailed report will be published subsequently. They explained their methodology on the estimates, a sample of 2,61, 476 households. Out of which 1,55, 014, were in rural areas, across states and Union territories.
Among the MPCE data, Sikkim has the highest consumption expenditure in both rural and urban households, and Chhatisgarh has the lowest expenditure.