Household Consumer Expenditure Survey 2022-23 Highlights

Household Consumer Expenditure Survey, conducted by NSSO to collect information on consumption patterns of households across the country. Get highlights ofHousehold Consumer Expenditure Survey 2022-23

Table of Contents

Context: Recently, the Household Consumption Expenditure Survey (HCES) 2022-23 has been released.

About Household Consumer Expenditure Survey (HCES)

Duration: Traditionally a quinquennial (recurring every five years) survey.
Conducted by: National Sample Survey Office (NSSO) under the Ministry of Statistics and Programme Implementation.
Purpose:
- Collect data on household consumption of goods and services.
- Gather auxiliary information on household characteristics and demographics.
Uses of HCES Data:
- Understand consumption patterns, living standards, and well-being of households.
- Calculate budget shares of different commodity groups for compiling Consumer Price Indices (CPIs).
- Derive various other macroeconomic indicators.

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Background of the Household Consumer Expenditure Survey

Last Survey: Conducted in the 68th round (July 2011 – June 2012).
2017-18 Survey: Findings rejected due to data quality concerns.
2019-2021 Planned Survey:
- Aim to conduct the next HCES in 2020-2021 or 2021-2022.
- Planned improvements based on expert panel recommendations to address data quality issues.
Reason for Delay: COVID-19 pandemic prevented the planned survey in the past two years.
New Survey: HCES finally resumed in July 2022.

Overview of Household Consumption Expenditure Survey 2022-23

Increase in Average MPCE: The average monthly per capita consumption expenditure (MPCE) witnessed a significant rise, with urban households reporting a 33.5% increase to ₹3,510 and rural households seeing a 40.42% increase to ₹2,008 since 2011-12.
Exclusions and Inclusions in MPCE Calculation: The MPCE figures do not account for the estimated value of items received for free through social welfare programs like the PM Garib Kalyan Ann Yojana (PMGKAY). However, they do include non-food items from such schemes, such as computers, mobile phones, bicycles, and clothing.
Adjusted Monthly Consumption Expenditure: After adding the imputed cost of free items, the adjusted average monthly consumption expenditures were ₹3,860 for rural areas and ₹6,521 for urban areas.

Rural-Urban MPCE Gap: The disparity in average MPCE between rural and urban households has narrowed to 71.2% in 2022-23 from 83.9% in 2011-12, indicating a more significant increase in rural consumption.
MPCE Among the Bottom and Top Percentiles: The bottom 5% of the population in rural and urban areas have an average MPCE of ₹1,373 and ₹2,001, respectively, while the top 5% spend ₹10,501 (rural) and ₹20,824 (urban), showcasing the economic disparity.
Food Expenditure Trends: The proportion of spending on food has decreased to 46% (₹1,750) in rural areas and 39% (₹2,530) in urban areas in 2022-23, reflecting a shift in consumption patterns.
Non-Food Consumption Expenditure: There’s been a notable increase in spending on non-food items, particularly on transport, services, and durable goods in both rural (54%) and urban (61%) areas.
State-Wise MPCE Comparison: Sikkim stands out with the highest MPCE in both rural (₹7,731) and urban (₹12,105) areas, whereas Chhattisgarh has the lowest, with rural households at ₹2,466 and urban at ₹4,483.

Fact

The survey has covered the whole of the Indian Union except a few inaccessible villages in the Andaman and Nicobar Islands. Information in the survey has been collected from 8,723 villages and 6,115 urban blocks spread over the entire country covering 2,61,746 households.