Household expenditures: India

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Poor in villages live on Rs 17 a day, in towns on Rs 23 a day: 2012

Mahendra Singh, TNN | Jun 21, 2013

The Times of India

Poor in villages live on Rs 17 a day, in towns on Rs 23 a day: Survey

The average monthly spending on all-India basis was around Rs 1,430 for rural India and around Rs 2,630 for urban India, a government survey has revealed. NEW DELHI: The poor in rural areas spend only Rs 17 per day while those living in cities and towns spend Rs 23 a day, a government survey has revealed.

The bottom 5% of the population had an average monthly per capita expenditure of Rs 521.44 in rural areas and Rs 700.50 in urban areas, according to National Sample Survey (NSS) data for 2011-12 (July-June).

The top 5% of the population had an average monthly spending of Rs 4,481 per month in rural areas and Rs 10,282 in urban areas.

While there is no upper limit for spending for the top 5% segment, the maximum spending by those falling at the bottom of the ladder is Rs 616 a month (Rs 20.5 a day) in rural areas and Rs 827 (Rs 27.5) in urban areas.

The average monthly spending on all-India basis was around Rs 1,430 for rural India and around Rs 2,630 for urban India. This means those living in cities are spending about 84% higher than their rural counterparts.

In cities and towns, food accounted for 42.6% of the value of household consumption which included 9% on beverages, refreshments and processed food, 7% on milk and milk products, and 6.7% on cereals and cereal substitutes. Education accounted for 6.9%, fuel and light 6.7%, conveyance 6.5%, and clothing and footwear 6.4%.

In rural India, food accounted for 52.9% of the value of consumption that included 10.8% on cereals and cereal substitutes, 8% on milk and milk products, 7.9% on beverages, refreshments and processed food, and 6.6% on vegetables.

Among non-food items, fuel and light for household purposes (excluding transportation) accounted for 8%, clothing and footwear for 7%, medical expenses for 6.7%, education for 3.5%, conveyance for 4.2%, other consumer services (excluding conveyance) for 4% and consumer durables for 4.5%.

Even in rural areas, spending on cereals has seen a declining trend as it came down from 18% in 2004-05 to 12% in 2011-12. In urban India, it came down from 10.1% in 2004-05 to 7.3% in 2011-12.

Apart from beverages, none of the food items such as grams, pulses, milk, fish, vegetables showed any noticeable increase in share in both rural and urban India. The spending on pan, tobacco and intoxicants fell noticeably over the years since 1993-94 though the decline appears to be flattening out.

The spending on "miscellaneous goods and services" category (including education, medical care and entertainment) has grown significantly — from 23.4% in 2004-05 to 26% in 2011-12 in rural areas and from 37.2% in 2004-05 to nearly 40% in urban areas.

As far as states are concerned, consumption expenditure in villages of Odisha and Jharkhand were the lowest, followed by Bihar, Madhya Pradesh and UP. In urban areas, Bihar had the lowest expenditure followed by Chhattisgarh, Odisha, Jharkhand and UP.