Top 5 per cent of the population in India has almost 10 times more Monthly Per Capita Expenditure (MPCE) than the lower 5 per cent of the population in the urban areas, a consumption survey by the Statistics Ministry showed. It also highlighted that Sikkim tops among all States and Union Territories in terms of MPCE, while Chhattisgarh is at the bottom.

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Based on the Household Consumption Expenditure Survey (HCES: 2022-23), the estimates of MPCE are based on the data collected from over 2.61 lakh households with over 1.55 lakh in rural areas and over 1.06 lakh in urban areas spread over all States and Union Territories in the country. The survey was conducted from August 2022 to July 2023. It may be noted that results of the previous survey were withheld after data leaked showing huge differences and the government claimed discrepancies.

“The bottom 5 per cent of India’s rural population, ranked by MPCE, has an average MPCE of ₹1,373 while it is ₹2,001 for the same category of population in the urban areas. The top 5 per cent of India’s rural and urban population, ranked by MPCE, has an average MPCE of ₹10,501 and ₹20,824, respectively,” fact sheet on HCES said. This means the bottom 5 per cent of the population and the top 5 per cent of the population in rural and urban areas have consumption differential of over 664 per cent and 940 per cent.

Another important data point is expenditure on food and non-food items. While in rural India, the ratio is almost equal (46 and 54 per cent), people in urban areas have a wider gap. The urban population spends 39 per cent on food and 61 per cent on non-food. Another important fact is that from 1999-2000 to 2022-23, the share of spending on cereals dropped to almost fifth in rural areas and to almost fourth in urban areas. During this period, spending on education and conveyance in both rural and urban areas has gone up.

Results of the survey indicated that the average MPCE (without considering the imputed values of the items received free of cost through social transfer) in rural areas rose to ₹3,773 in 2022-23 from ₹10,054 in 2009-10. During the same period, MPCE in urban areas grew to ₹6,459 from ₹1,984. The survey has also given value after considering imputed values of items received free of cost through various social welfare programs. Here, MPCE in rural areas rose surged to ₹3,860 from ₹1,084 and in urban areas to ₹6,521 from ₹1,984.

In HCES, the usual practice of imputation of the value figures for consumption out of home-grown/home-produced stock and gifts, loans, free collection, and goods received in exchange for goods and services, etc. has been continued; and accordingly, estimates of MPCE have been generated. Besides, a provision for the collection of information on the quantity of consumption for several items received and consumed by the households free of cost through various social welfare programs has been made in HCES.

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Consequently, the value figures for food items: rice, wheat/atta, jowar, bajra, maize, ragi, barley, small millets, pulses, gram, salt, sugar, edible oil, and non-food items: laptop/PC, tablet, mobile handset, bicycle, motorcycle/Scooty, clothing (school uniform), footwear (school shoe, etc.) received free of cost by the households through these programs, have been imputed using an appropriate method.

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