Household Consumption Expenditure Survey

• Context (PIB | TH | IE): Percapita Monthly Household Consumption Expenditure (MHCE) more than doubled during 2011-12 to 2022-23. The HCE survey is released after a gap of 11 years.
• The findings of the last Survey, conducted in 2017-18, soon after the demonetisation and the implementation of the GST, were never released after the government cited data quality issues.
• The data will play a key role in reviewing critical economic indicators, including the Gross Domestic Product (GDP), poverty levels, and Consumer Price Inflation (CPI).
• Also, it gives policymakers and experts an assessment of the income and expenditure levels of households and how and where they are spending their money.

Household Consumption Expenditure Survey (HCES)

• Conducted by: National Sample Survey Office (NSSO), Ministry of Statistics and Programme Implementation.
• Period: Conducted every five years (quinquennial).
• Purpose: It collects information on the consumption spending patterns of households across the country, both urban and rural.
• Data Focus: The data gathered in this exercise reveals the average expenditure on goods (food and non-food) and services.

The MPCE figure excludes estimated values of items obtained through social welfare programs but includes certain non-food items like computers and clothing.

Key Findings

Average Monthly Spending

• Urban households in India saw a 33.5% rise in average monthly per capita consumption expenditure (MPCE) since 2011-12, reaching ₹3,510.
• Rural India experienced a 40.42% increase in MPCE to ₹2,008 during the same period.

Expenditure on food

• The share of expenditure on food has gradually declined for both urban and rural households.
• However, it is for the first time that expenditure on food has fallen to less than 50 per cent of the total consumption expenditure in rural India and less than 40 per cent in urban India.

Non-Food Expenditure

• Consumption expenditure on non-food items increased, driven by higher spending on conveyance, consumer services, and durable goods in 2022-23 compared to 2011-12.
• Share of expenditure on cereals, pulses, and vegetables moderated.

Rural-Urban Disparities

• The gap in average MPCE between rural and urban households narrowed to 71.2% in 2022-23 from 83.9% in 2011-12, indicating higher growth in rural spending.

Income Disparities

• The bottom 5% of the rural population has an average MPCE of ₹1,373, while for the urban population, it is ₹2,001.
• The top 5% of the rural and urban population has an average MPCE of ₹10,501 and ₹20,824, respectively.

State-wise Variances

• Sikkim has the highest MPCE in both rural (₹7,731) and urban areas (₹12,105).
• Chhattisgarh has the lowest MPCE, with ₹2,466 for rural households and ₹4,483 for urban households.