Monday, November 19, 2012

Per Capita Consumption Expenditure is increasing faster in rural India than urban India


The National Sample Survey Organisation’s consumer expenditure surveys aim at generating estimates of household monthly per capita expenditure (MPCE) and its distribution separately for the rural and urban sectors of the country, for States and Union Territories, and for different socio-economic groups. These indicators are amongst the most important measures of the level of living of the respective domains of the population. The provisional results on consumer expenditure of NSS 68th Round (July 2011 – June 2012) are brought out by the NSSO recently.   The provisional results of NSS 68th Round are based on the 7391 villages (59,070 sample households) in rural areas and 5223 urban blocks (41,602 sample households)  spread over almost all States and Union Territories in the country.  The results compiled  are based on a measure termed as “Monthly Per capita Consumer Expenditure with Uniform Reference Period” (MPCEURP), where a common reference period of “last 30 days” was used for all items of Consumer Expenditure  on which data were collected.

The values of  average MPCEURP for NSS 68th , 66th and 61st rounds at all-India level at current  prices and at 2004-05 prices are given below:

Average MPCEURP (Rs.)  at current Prices

NSS Round
Year
Rural
Urban
68th Round (Provisional)
July 2011-June 2012
1281.45
2401.68
66th Round
July 2009-June 2010
927.70
1785.81
61st Round
July 2004-June  2005
558.78
1052.36
               
  
  Average MPCEURP (Rs.)  at 2004-05 Prices

NSS Round
Year
Rural
Urban
68th Round (Provisional)
July 2011-June 2012
707.24
1359.75
66th Round
July 2009-June 2010
599.06
1200.01
61st Round
July 2004-June  2005
558.78
1052.36

  Besides, the all-India  average MPCE,  average MPCE over decile classes of MPCE from the data collected in the 68th Round are given below. These decile classes for rural and urban domains are computed separately.
.
All India average MPCEURP (Rs.), NSS 68th Round, Consumer Expenditure over decile classes of population.


Decile Class
RURAL
URBAN
Decile Class Limits
( in Rs.)
MPCEURP
( in Rs.)
Decile Class Limits
( in Rs.)
MPCEURP
( in Rs.)
1st

upto 597
503.49
Upto 860
702.26
2nd

597-719
661.19
860-1086
977.25
3rd

719-824
770.88
1086-1295
1189.57
4th

824-922
873.73
1295-1509
1398.76
5th

922-1030
974.03
1509- 1759
1630.67
6th

1030-1162
1094.92
1759-2070
1908.46
7th

1162-1334
1243.95
2070-2464
2248.50
8th

1334-1581
1448.61
2464-3077
2737.71
9th

1581- 2054
1783.87
3077-4281
3571.31
10th

2054 -more
3459.77
4282 -more
7651.68
   
Some salient findings of the survey are as follows:

Ø  The per capita expenditure level of the urban population was on the average over 87% higher than that of the rural population.

Ø  The poorest 10% of India’s rural population were spending on consumption items an monthly average of Rs.503.49 per person i.e. less than Rs 17 per day. The poorest 10% of the urban population were spending on consumption items an monthly average of Rs.702.26 per person  i.e. more than Rs 23 per day.  The difference is just eight rupees per one individual.

Ø  The top 10% of the rural population as per MPCEURP, had an average monthly spending of Rs. 3459.77 on consumption items per person (about Rs 115 per day), about 6.9 times that of the bottom 10%. The top 10% of the urban population had an average monthly spending of Rs. 7651.68 on consumption items per person (about Rs 255 per day),  about 10.9 times that of the bottom 10%.

Ø  In rural India, half of the population belonged to households with MPCEURP below Rs.1030 (median value).

Ø  In urban areas of India, half of the population was living with MPCEURP below Rs.1759.

Real increase in per capita monthly consumption expenditure in rural and urban areas from (2009-10) to (2011-12) had been 18% and 13% respectively, whereas at current prices the quantum of increases was 38% in rural areas and   34% in urban areas.  It implicitly indicate that prices of consumption goods are rising more in urban than rural areas.  Also the spending power with rural areas are now rising faster than urban.

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