Over the past ten to eleven years, the economic gap between the village and the metropolis has narrowed. People dwelling in villages now spend the same amount of money as those living in cities. People’s spending on other items has risen during this period, while their food expenses have declined. The nation’s rate of poverty has also gone down over this period. The Central Government has made all of this information available in a recently released report on the survey conducted by the National Sample Survey Office (NSSO).
Yesterday (February 25, Sunday), the Central Government’s Ministry of Statistics and Programme Implementation (MoSPI) released the Family Consumption Expenditure Survey statistics detailing the expenses incurred by families across the country. This survey was conducted between August 2022 and July 2023. This was the 76th edition of this survey. The report provided insight into many significant data. Details regarding one person’s monthly expenditures are provided in this report. Statistics for those residing in cities and villages have been provided separately in the report.
Spending capacity has increased in villages; gap with cities has narrowed
The national survey indicates that the per capita monthly expenditure in rural areas is Rs 3,773, while in urban areas, it stands at Rs 6,459. Comparing this to the 2011–12 survey, it is roughly 2.5 times higher. In 2011–12, a villager spent Rs 1430 on himself, whereas a person living in the urban area spent Rs 2630. As per the report, a villager spends 46 per cent of his entire income on food, whereas a person living in the city spends 39 per cent.
Currently, there is a 71% gap in the consumption expenditure of those living in villages and cities, compared to an approximate 84% gap in 2011–12. This implies that the disparities between the two segments have narrowed. Villagers are now spending more on the amenities that were formerly exclusive to cities and are now available in the villages.
According to the research, the wealthiest 5% of the urban population spend Rs 20,824 monthly, while the top 5% of villagers spend Rs 10,501. Similarly, the least wealthy 5% of the rural population spends Rs 1373 monthly, while the lowest-income 5% urbanised population spends Rs 2001 monthly. In the rural area, a person’s monthly food expenses hover around Rs 1750, whereas in the city, it is Rs 2530. The research indicates that the entire country’s population is spending less on food overall.
The report further indicated that, compared to 1999–2000, when food accounted for 59% of a rural person’s overall expenditures, that percentage has declined to 46%. In urban areas, it was 48% at that time and is currently 39%.
The report made available by the central government also included state-specific statistics.
Which state’s population spend the most?
According to the survey, the people of Sikkim spend the highest among all states. The people of Sikkim spend the highest among all states, according to the survey. In Sikkim, an urban individual spends Rs 12,105, while a rural person spends Rs 7731. In contrast, Chhattisgarh has the lowest spending. Here, an urban individual spends Rs 4483 and a rural person spends Rs 2466. The comparable expenses in Uttar Pradesh and Bihar are Rs 5040 (urban)-Rs 3191 (rural) and Rs 4768 (urban)-Rs 3384 (rural) respectively.
The amount that persons with various jobs spend is also included in these data.
In villages, the total household expenditure of those engaged in farming is Rs 3702 a month, while those in jobs spend Rs 4533 monthly. However, in cities, self-employed individuals spend Rs 6067, while those in jobs spend Rs 7146. Based on the social fabric, the country’s Scheduled Tribe population spends Rs 3016 in rural areas and Rs 5414 in urban areas per month. The similar spending for other backward classes is Rs 4392 in rural areas and Rs 7333 in urban areas.
Expenditure on fruits and cold drinks went up while expenditure on grains and vegetables declined in both rural belts and cities
Data regarding people’s spending habits has also been provided in the survey. In 2011–12, villagers spent 10.6% of their income on grains; today, that percentage has decreased to 4.89%. Likewise, the amount spent on pulses has dropped from 2.76% to 1.77%. The amount spent on veggies dropped from 6.6% to 5.38%. In contrast, spending on fruits has gone up from 2.25% to 2.54%, while spending on beverages and packaged foods has gone up from 7.9% to 9.62%, indicating a shift towards a more prosperous lifestyle.
The same trend has been seen in cities also. People living in cities were spending 6.6% on grains during 2011-12, which has now come down to 3.62%. Expenditure on pulses has decreased from 1.93% to 1.21%. In comparison, expenditure on packaged food and beverages has increased from 8.9% to 10.6%.
Data reflects the status of India’s poverty level
The data provided in this survey also paints an accurate picture of the poverty level in the country. According to BVR Subramaniam, CEO of NITI Aayog, India’s poverty level has fallen to just five per cent, signalling an improvement in the nation’s economic landscape. In light of this data, he asserted that there is now no scarcity issue in the villages. The assertion that village expenditures were declining and that the villages’ conditions remained unchanged was refuted by the CEO of NITI Aayog. In fact, he underscored the narrowing gap between rural and urban consumption, suggesting a positive trajectory towards economic parity.
