National Desk, 25th February: The gap in average monthly per capita consumption expenditure (MPCE) between rural and urban households in India has significantly reduced, according to the latest Household Consumption Expenditure Survey (HCES) 2022-23 published by the Ministry of Statistics and Programme Implementation (MoSPI) on Saturday, February 24.
Data from the survey reveals that rural consumption spending has surged more than urban spending over the past 11 years. Rural average monthly consumption spending per person witnessed a notable increase from Rs 1,430 per person in 2011-12 to Rs 3,773 per month in 2022-23, marking a remarkable surge of 164 percent. In comparison, urban average monthly consumption expenditure per person rose from Rs 2,630 per person in 2011-12 to Rs 6,459 in 2022-23, reflecting a growth of 146 percent.
Despite a five-year interval for Household Consumption Expenditure surveys, the government refrained from releasing the results of its 75th round for July 2017-June 2018, citing significant variations in consumption patterns and direction of change. The unreleased survey reportedly indicated a drop in consumption expenditure.
The survey also sheds light on the disparity in expenditure among different segments of the population. The average Monthly Per Capita Expenditure (MPCE) for the lowest 5 per cent of the rural population stands at Rs 1,373, while for the same percentile in urban areas, it is Rs 2,001. Conversely, the top 5 per cent of the population in both rural and urban areas exhibit significantly higher MPCE figures, amounting to Rs 10,501 and Rs 20,824, respectively.
In terms of expenditure composition, the survey indicates that food expenditure accounted for 46 percent of total spending in rural areas and 39 percent in urban areas in the financial year 2022-23, down from 2011-12 figures. Non-food expenditure, encompassing categories such as conveyance, consumer services, and durable goods, witnessed an uptick to 54 percent in rural India and 61 percent in urban India in 2022-23, compared to data from 2011-12.
Moreover, the survey incorporates the estimated cost of food grains and other complimentary items distributed under government schemes, revealing that the average monthly consumption expenditure stands at Rs 3,860 in rural areas and Rs 6,521 in urban areas.
The latest HCES results provide crucial insights into household consumption patterns and expenditure dynamics, offering valuable data for policymakers and researchers. This release comes after a significant interval, following the government’s decision to discard the 2017-18 survey due to leaked results indicating a decrease in consumption.
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