{"id":39810,"date":"2024-02-25T05:58:15","date_gmt":"2024-02-25T00:28:15","guid":{"rendered":"https:\/\/vajiramandravi.com\/current-affairs\/?p=39810"},"modified":"2025-04-24T19:44:26","modified_gmt":"2025-04-24T14:14:26","slug":"hces-2022-23","status":"publish","type":"post","link":"https:\/\/vajiramandravi.com\/current-affairs\/hces-2022-23\/","title":{"rendered":"Household Consumption Expenditure Survey 2022-23"},"content":{"rendered":"<h2>What\u2019s in today\u2019s article?<\/h2>\n<ul>\n<li>Why in news?<\/li>\n<li>What is Consumer Expenditure Survey (CES)?<\/li>\n<li>What is the significance of Consumer Expenditure Survey (CES)?<\/li>\n<li>Background:\u00a0<\/li>\n<li>News Summary: Household Consumption Expenditure Survey 2022-23<\/li>\n<li>Key findings: Household Consumption Expenditure Survey 2022-23<\/li>\n<\/ul>\n<h2>Why in news?<\/h2>\n<ul>\n<li>For the first time in about 11 years, the government released the data of the All-India Household Consumption Expenditure Survey.\n<ul>\n<li>The survey was carried out between August 2022 and July 2023.<\/li>\n<\/ul>\n<\/li>\n<li>The data will play a key role in reviewing critical economic indicators, including the Gross Domestic Product (GDP), poverty levels, and the Consumer Price Inflation (CPI).<\/li>\n<\/ul>\n<h2>Consumer Expenditure Survey (CES)<\/h2>\n<ul>\n<li>The CES is traditionally a <u>quinquennial (recurring every five years) survey<\/u> conducted by the government\u2019s National Statistical Office (NSO).<\/li>\n<li>It is designed to collect information on the consumption spending patterns of households across the country, both urban and rural.<\/li>\n<li>The data gathered in this exercise reveals the average expenditure on goods (food and non-food) and services.<\/li>\n<li>It helps generate estimates of household Monthly Per Capita Consumer Expenditure (MPCE) as well as the distribution of households and persons over the MPCE classes.<\/li>\n<\/ul>\n<h2>Significance of Consumer Expenditure Survey (CES)<\/h2>\n<ul>\n<li>Vital in gauging the demand dynamics\n<ul>\n<li>The estimates of monthly per capita consumption spending are important in measuring the demand dynamics of the economy.<\/li>\n<li>It is also useful for understanding the shifting priorities in terms of baskets of goods and services.<\/li>\n<\/ul>\n<\/li>\n<li>Assessment of growth trends across different strata\n<ul>\n<li>It is helpful in assessing living standards and growth trends across multiple strata.<\/li>\n<\/ul>\n<\/li>\n<li>Invaluable analytic and forecasting tool\n<ul>\n<li>The CES is an invaluable analytical as well as forecasting tool.\n<ul>\n<li>It helps policymakers spot and address possible structural anomalies that may cause demand to shift in a particular manner.<\/li>\n<li>It provides pointers to producers of goods and providers of services.<\/li>\n<\/ul>\n<\/li>\n<li>It isused by the government in rebasing the GDP and other macro-economic indicators.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h2>Background<\/h2>\n<ul>\n<li>The last survey on consumer expenditure was conducted in the 68th round (July 2011 to June 2012).\n<ul>\n<li>This is because the government had junked the findings of the last Survey, conducted in 2017\u201318, <u>citing data quality issues<\/u>.<\/li>\n<\/ul>\n<\/li>\n<li>In November 2019, the Statistics and Programme Implementation Ministry said it was examining the feasibility of conducting the next Survey in 2020\u20132021 and 2021\u201322.\n<ul>\n<li>This was to be done after incorporating <u>all data quality refinements in the survey process<\/u>, as recommended by an expert panel.<\/li>\n<li>The expert panel had vetted the discrepancies in the 2017\u201318 results and recommended certain changes.<\/li>\n<\/ul>\n<\/li>\n<li>However, the Survey could not be launched in the last two years due to the pandemic.<\/li>\n<li>Finally, a decision has been taken to conduct the Survey from July 2022.<\/li>\n<\/ul>\n<h2>News Summary: Household Consumption Expenditure Survey 2022-23<\/h2>\n<ul>\n<li>Ministry of Statistics and Programme Implementation has conducted Household Consumption Expenditure Survey (HCES) during August 2022 to July 2023.<\/li>\n<\/ul>\n<h2>Key findings: Household Consumption Expenditure Survey 2022-23<\/h2>\n<ul>\n<li>Average monthly per capita consumption expenditure (MPCE)\n<ul>\n<li>As per the latest Survey, the average MPCE in Indian households rose by 33.5% since 2011-12 in urban households to \u20b93,510.<\/li>\n<li>Rural India\u2019s MPCE saw a 40.42% increase over the same period to hit \u20b92,008.<\/li>\n<li>The MPCE numbers mentioned above donot 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.<\/li>\n<li>It, however, included a few non-food items received through such schemes, including computers, mobile phones, bicycles, and clothing.\n<ul>\n<li>By adding the imputed cost of free items, the average monthly consumption expenditure stood at Rs 3,860 in rural areas and Rs 6,521 in urban areas.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/li>\n<li>Difference in average MPCE between rural and urban households\n<ul>\n<li>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.<\/li>\n<li>This suggests rural consumption spending has risen more than urban consumption spending during the 11-year period.<\/li>\n<\/ul>\n<\/li>\n<li>Average MPCE of the bottom 5 per cent of rural population and of urban population\n<ul>\n<li>The bottom 5 per cent of rural population has an average MPCE of Rs 1,373, while it is Rs 2,001 for the bottom 5 per cent of urban population.<\/li>\n<li>The top 5 per cent of the rural and urban population has an average MPCE of Rs 10,501 and Rs 20,824, respectively.<\/li>\n<li>In other words, <u>while the MPCE of top 5 per cent of rural population is 7.65 times more than its bottom 5 per cent<\/u>, the MPCE of top 5 per cent of urban population has an MPCE of over 10 times its bottom 5 per cent.<\/li>\n<\/ul>\n<\/li>\n<li>Share of expenditure on food\n<ul>\n<li>In 2022-23, the share of expenditure on food in rural India was 46 per cent (Rs 1,750), and in urban India was 39 per cent (Rs 2,530).<\/li>\n<li>In 2011-12, it was 52.90 per cent in rural India and 42.62 per cent in urban India. This has implications for consumer price index-based inflation.<\/li>\n<\/ul>\n<\/li>\n<li>Consumption expenditure on non-food items\n<ul>\n<li>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.<\/li>\n<li>The share of expenditure on cereals, pulses and vegetables moderated during the same period.<\/li>\n<\/ul>\n<\/li>\n<li>Comparison among states\n<ul>\n<li>Among the States, the MPCE is the highest in Sikkim for both rural (\u20b97,731) and urban areas (\u20b912,105).<\/li>\n<li>It is the lowest in Chhattisgarh, where it was \u20b92,466 for rural households and \u20b94,483 for urban household members.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<hr \/>\n<h3>Q1)\u00a0Where is National Statistical Office (NSO)?<\/h3>\n<p>The National Statistical Office (NSO) is a wing of the Ministry of Statistics and Program Implementation (MoSPI). The NSO&#8217;s primary function is to collect, compile, and release official statistics.<\/p>\n<h3>Q2) What is Consumer Price Index (CPI)?<\/h3>\n<p>The Consumer Price Index (CPI) is a measure of the average change in prices paid by consumers for goods and services over time. The CPI is calculated using a representative basket of goods and services that are typically purchased by specific groups of households.<\/p>\n<hr \/>\n<p><strong>Source:<\/strong> <a href=\"https:\/\/www.thehindu.com\/business\/Economy\/after-11-years-household-consumption-expenditure-survey-findings-released\/article67882939.ece\" target=\"_blank\" rel=\"nofollow noopener\"><u>After a 11-year gap, Centre discloses key consumption expenditure survey data<\/u><\/a><u> | <\/u><a href=\"https:\/\/pib.gov.in\/PressReleaseIframePage.aspx?PRID=2008737\" target=\"_blank\" rel=\"nofollow noopener\"><u>PIB<\/u><\/a><u> | <\/u><a href=\"https:\/\/mospi.gov.in\/web\/ces\" target=\"_blank\" rel=\"nofollow noopener\"><u>MOSPI<\/u><\/a><u> | <\/u><a href=\"https:\/\/indianexpress.com\/article\/business\/rural-consumption-spend-rises-more-than-urban-in-11-years-till-2022-23-urban-rural-gap-narrows-by-over-11-percentage-points-9179232\/\" target=\"_blank\" rel=\"nofollow noopener\"><u>Indian Express<\/u><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>This article analyses the current status of the war between Russia and Ukraine on the completion of one year.<\/p>\n","protected":false},"author":5,"featured_media":39811,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[18],"tags":[],"class_list":{"0":"post-39810","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-upsc-mains-current-affairs","8":"no-featured-image-padding"},"acf":[],"_links":{"self":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/39810","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/comments?post=39810"}],"version-history":[{"count":0,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/39810\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media\/39811"}],"wp:attachment":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media?parent=39810"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/categories?post=39810"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/tags?post=39810"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}