As per the latest news, the All-India Household Consumer Expenditure Survey is anticipated to recommence this year (2022) after an extended hiatus. The survey findings will be divided into separate data sets for urban and rural regions and will dissect spending tendencies for every Indian State and Union Territory, including different socio-economic groups.
Government’s Interruption of the Survey
The government had previously halted the revelation of the last survey’s results, carried out in 2017-18, attributing it to “data quality” issues. In 2019, the government refuted reports suggesting that the survey’s results from 2017-18 were being withheld due to negative outcomes pointing towards a decline in consumer expenditure.
One significant concern was a noticeable rise in the divergence in not only consumption pattern levels but also the direction of change when juxtaposed with other administrative data sources like actual production of goods and services. Questions regarding the “ability/sensitivity of the survey instrument to capture consumption of social services by households particularly on health and education” were also raised.
Understanding the Household Consumer Spending Survey
Typically, the Household Consumer Spending Survey is a quinquennial (conducted every five years) survey conducted by the National Sample Survey Office – NSSO, which falls under the purview of the National Statistical Office, Ministry of Statistics and Programme Implementation. The survey collects data on the expenditure habits of households throughout the country, both in urban and rural areas.
The information generated through the survey provides insight into the average expenditure on goods (food and non-food) and services. It aids in creating estimates of household Monthly Per Capita Consumer Expenditure (MPCE) and understanding the distribution of households and individuals over the MPCE classes.
General Significance of the Survey
The survey plays a crucial role in calculating the demand dynamics of the economy. It offers insight into the shifting priorities in terms of baskets of goods and services, thereby providing valuable information to the producers of goods and service providers.
The data serves as a tool to assess living standards and growth trends across multiple strata.
Significance for Policymakers
The Consumer Expenditure Survey (CES) acts as both an analytical and forecasting tool. It helps the government in planning necessary interventions and policies, allowing policymakers to identify and address possible structural anomalies that may influence a specific shift in demand within a particular socio-economic or regional division of the population.
The survey also supports the rebasing of the Gross Domestic Product (GDP) and other macro-economic indicators.
Source: TH