Household spending on the rise, finds NSSO

NEW DELHI: The 62nd NSSO survey on household expenditure for 2005-06 has highlighted improvement in monthly per capita consumption expenditure (MCPE) for both rural (Rs 625) and urban (Rs 1,171) households.

In the previous survey, MPCE for rural areas was Rs 565 while monthly spending of urban households stood at Rs 1060. The difference between rural and urban expenditure continues to remain at 88% in the current survey too.

While an individual in rural India, on an average, spends less than Rs 21 a day for survival, an urban citizen spends about Rs 39. Nearly 19% of rural population was below the monthly per capita consumption expenditure (MPCE) as they spent less than Rs 12 a day.

According to the report, while income level showed improvement, food expenditure as a percentage of total expenditure showed steady decline in both urban and rural areas.

Food expenditure in the monthly per capita expenditure for the rural and urban population declined to 53% and 40% in 2005-06 from 54% and 42%, respectively, a year ago. Data shows an average rural citizen spends more on cereals, vegetables and milk & milk products (31%) compared to an urban citizen (20%). People in the urban area spend more on value-added products such as beverages, refreshments and processed foods.

Across the states, there are significant disparities in consumption expenditure. Among the urban areas, Bihar scores the lowest at Rs 684 per head. IN the case of rural areas, Chhattishgarh is the lowest at Rs 429.

Kerala topped the list once again in terms of expenditure with its urban population averaging Rs 1566 per month followed by Punjab at Rs 1520. Per capita expenditure for rural population in these two states was Rs 1056 and Rs 1010, respectively.

The use of LPG as cooking gas was restricted to just a small section in rural areas with 74% still depending on firewood. Data also shows 56% houseolds in rural India used electricity for lighting and reduced their dependence on kerosene for lighting to 42% compared to 46% in the previous year.