Level and Pattern of Consumer Expenditure in India

Transcription

1 Report No. 457(55/1.0/3) Level and Pattern of Consumer Expenditure in India NSS 55th Round (July 1999 June 2000) National Sample Survey Organisation Ministry of Statistics & Programme Implementation Government of India May 2001

2 Preface The National Sample Survey Organisation (NSSO) has been carrying out allindia household surveys on Consumer Expenditure and Employment & Unemployment with a large sample usually once in every five years. The sixth such survey was conducted in the 55 th round (July 1999June 2000) which covered Nonagricultural Enterprises in the Informal Sector in addition. The schedule of enquiry on Consumer Expenditure for the survey was, more or less, similar to that adopted in previous quinquennial rounds. The present report contains detailed tables giving, for each State and Union Territory of India, the distribution of households by monthly per capita expenditure classes and sizes. It also contains the break up of consumer expenditure by community groups both in quantity and value, per capita of cereals and pulses, etc by average monthly per capita expenditure classes. This report has four sections and one appendix. Section One of the report is introductory while Section Two presents Concepts and Definitions. Section Three gives Sample Design and Estimation Procedure. Survey findings are provided in Section Four while the Appendix contains the tables. The Field Operations Division (FOD) of the Organisation conducted the fieldwork for the survey. The collected data were processed and tabulated by the Data Processing Division (DPD) of the NSSO. The Survey Design & Research Division (SDRD) of the NSSO developed the survey design and prepared the report. I am grateful to the Chairman and members of the Governing Council, Heads of various Divisions of the NSSO and their colleagues for the contribution made in preparing the report. Comments/suggestions from the readers will be most welcome. New Delhi May 2001 N. S. Sastry Director General & Chief Executive Officer National Sample Survey Organisation NSS Report No. 457: Household Consumer Expenditure in India,

3 Contents Section One Introduction 1 3 Section Two Concepts and Definitions 4 7 Section Three Sample Design and Estimation Procedure 8 15 Section Four Survey Findings Appendix A Tables A1A266 Appendix A List of Tables 1R: Per distribution of households and persons by MPCE class, number per households of adults and children by sex in different MPCE classes 1U: Per distribution of households and persons by MPCE class, number per households of adults and children by sex in different MPCE classes A1A17 A18A34 2R: Per distribution of household by size for each MPCE class A35A51 2U: Per distribution of household by size for each MPCE class A52A68 3R: Quantity of consump tion of cereals and pulses per person for a period of 30 days for each MPCE class 3U: Quantity of of cereals and pulses per person for a period of 30 days for each MPCE class 4R: Value of of cereals and pulses per person for a period of 30 days for each MPCE class 4U: Value of of cereals and pulses per person for a period of 30 days for each MPCE class 5R: Value (Rs) of of broad groups of food and nonfood s per person for a period of 30 days for each MPCE class 5U: Value (Rs) of of broad groups of food and nonfood s per person for a period of 30 days for each MPCE class A69A101 A102A134 A135A167 A168A200 A201A233 A234A266 NSS Report No. 457: Level and Pattern of Consumer Expenditure in India,

4 Section One Introduction 1.0 The 55 th round of NSS was conducted during July 1999 to June 2000 on household consumer expenditure, employmentunemployment and informal nonagricultural enterprises (other than those engaged in industrial categories of 'mining & quarrying', electricity, gas and water supply). It was the sixth quinquennial survey on Consumer Expenditure and EmploymentUnemployment. As decided by the Governing Council of NSSO, consumer expenditure and employmentunemployment surveys are carried out simultaneously every five years. The previous five quinquennial surveys were carried out during 27 th round (Oct 1972 Sept 1973), 32 nd round (July 1977 June 1978), 38 th round (Jan Dec 1983), 43 rd round (July 1987 June 1988) and 50 th round (July 1993 June 1994). In other rounds of NSS consumer expenditure inquiry on a reduced scale is being carried out from the 42 nd round (July 1986June 1987) onwards. From the 45 th round onwards the subject coverage of the schedule was expanded to include some important key characteristics of employmentunemployment so that an annual series of consumer expenditure and employmentunemployment data is available. During this 55 th round, a series of remedial measures have been taken to control the nonsampling errors. At the same time, household surveys have been integrated with enterprise survey. Since the reorganization of NSSO in 1972, an integrated survey of households and enterprises was conducted for the first time in this round. The salient features of this quinquennial survey were as follows: 1) Considering the size of the consumer expenditure schedule and EmploymentUnemployment schedule it was thought that it is very difficult to obtain information for both the schedules from the same household. So, they were canvassed in separate set of households unlike in earlier rounds. 2) The ization of consumer expenditure schedule has been rationalized by merging some of the s. Information on cash purchase and out of homegrown stock was also not collected like in earlier rounds as it was found from the past results that a household normally consumes either from purchase or from homegrown stock and not from both purchase and homegrown stock. During this round, therefore, only total and source of for each s of food, pan, tobacco & intoxicants, fuel & light and clothing & footwear were collected. 3) For seeking better cooperation from the informants a team of 2 or 3 investigators along with one supervisory staff was deployed for fieldwork rather than only one investigator. 4) The expenditure on secondhand clothing and secondhand durable goods was included in the expenditure for the first time. Although information on second hand durable goods was collected in earlier rounds, they were never included in expenditure NSS Report No. 457: Level and Pattern of Consumer Expenditure in India,

5 estimates. Also, the wages paid in cash to domestic servant or cook who was classified as a member of the household by definition, were also included in the expenditure estimates. As such, the scope of the expenditure has been extended over the previous rounds. 5) For controlling the nonsampling errors, information on for s of food, pan, tobacco & intoxicants were collected for two different reference periods. In the past this information was collected for only one reference period. 6) In contrast, information for s of clothing, footwear, education, medical (institutional) and durable goods was collected for only one reference period. This information was collected for two different reference periods in earlier quinquennial rounds of consumer expenditure. [Prior to 50 th round, two reference periods were used for the s of clothing, footwear and durable goods.] 7) Considering very high workload per firststage unit on an average in the 55 th round, the total number of sample firststage units was reduced. However, to balance this reduction, number of households surveyed per firststage unit was increased from 10 to Geographical coverage: The geographical coverage of the survey was the whole of Indian Union except Ladakh and Kargil districts of Jammu & Kashmir, 768 interior villages of Nagaland and 172 villages in Andaman & Nicobar Islands which remain inaccessible throughout the year. A few other areas of Jammu & Kashmir were also excluded from the survey coverage owing to unfavourable field conditions. 1.2 Subround: The survey period of one year was, as usual, divided into four subrounds of three months each as indicated below and equal number of sample villages and blocks were allotted to each subround. Subround 1 : JulySeptember 1999 Subround 2 : OctoberDecember 1999 Subround 3 : JanuaryMarch 2000 Subround 4 : AprilJune Sample Design: The sample design adopted in the survey was a two stage stratified design. The first stage units were 1991 census villages (panchayat wards for Kerala) for rural sector and Frame Survey (UFS) blocks for urban sector. The second stage units were households both for consumer expenditure and employment unemployment surveys. However, there was an intermediary stage, as usual in the earlier rounds, for the larger sample villages or blocks. In a larger sample village or block, it was split into a number of hamletgroups or subblocks suitably to make the quantum of fieldwork manageable. 1.4 Sample size : A total of 10,384 first stage units (villages/blocks) were selected for the entire survey in the 55 th round and villages/blocks were surveyed as per the details given below: NSS Report No. 457: Level and Pattern of Consumer Expenditure in India,

6 Item Total 1. No. of villages/blocks surveyed No. of households surveyed for Consumer Expenditure No. of persons in the households surveyed for Consumer Expenditure Number of FSUs allotted and surveyed, number of households surveyed along with their number of persons for each State, UT and allindia were given in Statement T 0 of Section Three. As noted at the end of Para 1.0, page 2, the number of firststage units was reduced and the number of households per firststage unit was increased in comparison with earlier 50 th rounds. 1.5 Data presented in this report: This report presents basic results on household consumer expenditure at State and allindia level. It gives distribution of households and persons by value of monthly per capita expenditure, distribution of households by household size, averages of monthly per capita expenditure, of cereals, breakup of these average values by important heads of. Estimates are presented separately for rural and urban sectors. They are also given for the combined sector i.e. rural+urban. Estimated numbers of total males, females and children have also been provided. However, it is cautioned that these may be underestimates compared to Census projections. 1.6 Contents in brief: A key report (No. 454) has been released on the basis of the results of household consumer expenditure of NSS 55 th round. The present report is the detailed version of the key report. It contains three sections and one appendix. Section One gives Introduction, Section Two Concepts and Definitions and the details of Sample Design and Estimation procedures are provided in Section Three. Section Four brings out the summary of Survey Findings. Appendix A gives the detailed tables, which have been used to prepare this report. NSS Report No. 457: Level and Pattern of Consumer Expenditure in India,

7 Section Two Concepts and Definitions 2.0 The main concepts and definitions used in this report are given below. 2.1 Household: A group of persons normally living together and taking food from a common kitchen constitutes a household. The word normally means that temporary visitors are excluded but temporary stayaways are included. Thus a son or daughter residing in a hostel for studies is excluded from the household of his/her parents, but a resident employee or resident domestic servant or paying guest (but not just a tenant in the house) is included in the employer/host's household. Living together is usually given more importance than sharing food from a common kitchen in drawing the boundaries of a household in case the two criteria are in conflict; however, in the special case of a person taking food with his family but sleeping elsewhere (say, in a shop or a different house) due to space shortage, the household formed by such a person's family members is taken to include the person also. Each inmate of a mess, hotel, boarding and lodging house, hostel, etc., is considered a singlemember household except that a family living in a hotel (say) is considered to be one household only; the same applies to residential staff of such establishments. 2.2 Adult: A person who has completed 15 years of age. 2.3 Household size: The size of a household is the total number of persons in the household. 2.4 Household consumer expenditure: The expenditure incurred by a household on domestic consump tion during the reference period is the household's consumer expenditure. The household consumer expenditure is the total of the monetary values of of various groups of s, namely, (i) food, pan (betel leaves), tobacco, intoxicants and fuel & light, (ii) clothing and footwear and (iii) miscellaneous goods and services and durable articles. 2.5 For groups (i) and (ii), the total value of is derived by aggregating the monetary value of goods actually consumed during the reference period. An of clothing and footwear is considered to be consumed if it is brought into maiden or first use during the reference period. The may be out of (a) purchases made during the reference period or earlier; (b) home grown stock; (c) receipts in exchange of goods and services; (d) any other receipt through gift, charity, borrowing; and (e) free collection. Home produce is evaluated at the ex farm or ex factory prices. For evaluating the of the s of group (iii), i.e. s categorised as miscellaneous goods and NSS Report No. 457: Level and Pattern of Consumer Expenditure in India,

8 services and durable goods, a different approach is followed. In this case, the expenditure made during the reference period for the purchase of goods and services is considered to be. 2.6 It is pertinent to mention here that the consumer expenditure of a household on food s relates to the actual by the normal resident members of the household and also by the guests, whether during ceremonies or otherwise. To avoid double counting, transfer payments like charity, loan, advance, etc., made by the household are not considered for s of groups (i) and (ii), since transfer receipts of these s have been taken into account. However, the cooked meals is an exception to the rule. Meals prepared in the household kitchen and provided to the employees and/or others would automatically get included in domestic of employer (payer) household. There is a practical difficulty in estimating the quantities and values of individual s used for preparing the meals served to employees or to others. Thus, to avoid double counting, cooked meals received as perquisites from employer household or as gift or charity are not recorded in the recipient household. As a general principle, cooked meals purchased from the market for of the normal resident members and of guests and employees will also be recorded in the purchaser household. 2.7 This procedure of recording cooked meals served to others in the expenditure of the serving households only leads to biasfree estimates of average per capita as well as total consumer expenditure. However, as the proportions of donors and recipients of free cooked meals are likely to vary in opposite directions over the expenditure classes, the nutritional intake derived from the consumer expenditure survey data may present a somewhat distorted picture. These derived nutrition intakes may get inflated for the rich (net donors) and somewhat understated for the poor (net recipients). This point has to be kept in mind while using the NSS consumer expenditure data for any nutritional studies relating to the nutritional status of households. 2.8 Value of : Consumption out of purchase is evaluated at the purchase price. Consumption out of home produce is evaluated at ex farm or ex factory prices. Value of out of gifts, loans, free collection and goods received in exchange of goods and services is imputed at the rate of average local retail prices prevailing during the reference period. 2.9 Monthly per capita consumer expenditure (MPCE): For a household, this is its 30 days total consumer expenditure divided by its size. A person s MPCE is understood as that of the household to which he or she belongs MPCE class: The MPCE classes are normally revised during quinquennial rounds of Consumer Expenditure. Usually, 12 MPCE classes are formed from a table giving estimated cumulative percentage frequency distribution of persons by MPCE for each sector separately and also combinedly. These classes correspond broadly to 5%, 10%, 20%, 30%, 40%, 50%, 60%, 70%, 80%, 90%, 95% and 100% of population. The class limits are given below: NSS Report No. 457: Level and Pattern of Consumer Expenditure in India,

9 sl. no. rural (in Rs) urban (in Rs) combined (in Rs) Major States: The term will be used to denote the following States of India: Andhra Pradesh, Assam, Bihar, Gujarat, Haryana, Karnataka, Kerala, Madhya Pradesh, Maharashtra, Orissa, Punjab, Rajasthan, Tamil Nadu, Uttar Pradesh and West Bengal Reference period: For collecting data on, the adoption of a reference period always involves a difficult choice. A short reference period (such as one day) gives rise to unstable data as a household s expenditure fluctuates from day to day. A long reference period, on the other hand, can introduce a good amount of recall error into the data. The annual series of consume r expenditure surveys, up to the 49 th round, used a uniform reference period of last 30 days for all s of. In the bigger surveys of the quinquennial series, an additional reference period of last 365 days was used for some s of particularly, clothing, footwear and durable goods but most results were tabulated using the last 30 days data. During the 51 st to 54 th rounds, onehalf of the sample of households was surveyed through schedule type I, which had a reference period of 30 days for all s. In the other half of the sample, a schedule (schedule type 2) with different reference periods for different s was tried out on an experimental basis. The reference periods for schedule type 2 were: Food, pan tobacco and intoxicants: last 7 days Fuel & light, miscellaneous goods &services, and medical (noninstitutional): last 30 days Educational, medical (institutional), clothing, footwear and durable goods : last 365 days. During 55 th round of NSS, information on of food, pan, tobacco & intoxicants was collected independently for two different reference periods of 7 days and 30 days from the same households. Another important feature of this round was that information in respect of of clothing, footwear, durable goods, education and medical (institutional) services was collected only for one reference period of last 365 days. In some of the NSS Report No. 457: Level and Pattern of Consumer Expenditure in India,

10 quinquennial rounds, information on these s was collected for two different reference periods last 30 days and last 365 days from the same households. The main results of 50 th or other earlier quinquennial rounds were, however, based on a reference period of 30 days only for all the s. However, This report presents data having reference period of last 365 days for clothing, footwear, education, medical (institutional) expenses and durable goods and last 30 days for rest of the s Milk and milk products: This group includes ghee, butter, curds, ice cream, etc. Milkbased sweetmeats (pera, rosogolla, etc.) come under beverages, refreshments and processed food unless they are prepared from milk, sugar, etc., within the household. In the latter case, of milk, sugar, etc., is accounted separately instead of as a single under milk products Beverages, refreshments, etc. (including processed food): This includes all beverages including tea, coffee, cocoa, cold drinks and various commercially produced beverages, biscuits and confectionery, salted refreshments, sweets, pickles, sauce, jams and jellies, and also cooked meals obtained on payment (see paragraphs 2.5 and 2.6) Clothing: This category includes bedsheets, bedcovers, pillows, curtains, mattresses, blankets, rugs, mats and matting, cotton yarn, wool and knitting wool. It, however, excludes tailoring charges, which come under miscellaneous goods and services Miscellaneous goods and services: Items of other than food and drink (and substances chewed and smoked), fuel, clothing and footwear, educational and medical goods and services, rent, taxes and durable goods Taxes and cesses: This term includes only taxes and cesses which are levied on the household as a domestic consumer. It includes consumer licence fees such as are paid for possession of firearms, etc. It excludes income tax Education: Apart from educational expenses proper such as school and college fees, private tuition charges, textbooks, etc., this group of s includes expenses on newspapers and magazines, fiction and stationery. Donations to school fund, however, are excluded Institutional and noninstitutional medical expenses:.the distinction between institutional and noninstitutional medical expenses lies in whether the expenses were incurred for medical treatment undergone as an inpatient of a medical institution (such as a hospital or nursing home) or otherwise. Medical expenses include expenditure on medicines and medical goods including family planning appliances, payments made for medical treatment, and expenses incurred for clinical tests Durable goods: Items included here are distinguished from miscellaneous goods by having a longer expected lifetime of use (roughly, one year or more). Expenditure incurred on repairs and construction of durables used for domestic purpose is included in expenditure on durable goods. NSS Report No. 457: Level and Pattern of Consumer Expenditure in India,

11 Section Three Sample Design and Estimation Procedure 3.1 Sample Design General: A stratified sampling design has been adopted for selection of the sample firststage units (FSU s). The FSU s are villages (panchayat wards for Kerala) for rural areas and Frame Survey (UFS) blocks for urban areas. The Ultimate stage units (USU s) are enterprises for schedule 2.0 and households for schedule 1.0/ 10/ 10.1, which are selected by the method of circular systematic sampling from the corresponding frame in the FSU. Large FSU s are subdivided into hamletgroups (rural)/ subblocks (urban), that are grouped into two segments, and USU s are selected independently from each of these segments Sampling frame for first stage units: List of villages (panchayat wards for Kerala) as per 1991 Census and latest lists of UFS blocks are respectively used for selection of rural and urban sample FSU s. For selection of sample villages from the State of Jammu & Kashmir, list of villages as per 1981 Census has been used as the sampling frame. It may be mentioned that all the uninhabited villages of the country as per 1991 Census, interior villages of Nagaland situated beyond 5 km of a bus route and inaccessible villages of Andaman & Nicobar Islands are left out of the survey coverage of the NSS 55th round Stratification : Two special strata are formed at the State/ UT level viz. Stratum1: all FSUs with population between 1 to 100, and Stratum2: FSUs with population more than 15,000. [Note: The above two strata are spread across a given state and are not confined to any particular administrative division within the state.] Above strata of either type are formed if at least 50 such FSU s are there in the respective frames. Otherwise, they are merged with the general strata. While forming general strata (consisting of FSU s other than those covered under strata 1 & 2), efforts have been made to treat each district as a separate stratum. If limitation of sample size does not allow forming so many strata, smaller districts within a particular NSS region are merged to form a NSS Report No. 457: Level and Pattern of Consumer Expenditure in India,

12 stratum. Each district with rural population of 2 millions or more as per 1991 Census (1.8 millions or more as per 1981 Census in case of Jammu & Kashmir) is as usual split into a number of strata : Strata are formed within NSS Regions as follows: Stratum Composition of strata by considering population of various towns as per the 1991 number Census 1, 3, 5 * hospital area (HA) / industrial area (IA) / bazaar area (BA) blocks taken together of each single city with a population of 10 lakhs or more (there could be a maximum of 3 such cities within an NSS Region) 2, 4, 6 * Other blocks of each single city with a population of 10 lakhs or more 7 HA or IA or BA blocks of all towns with population between 50,000 and less than 10 lakhs 8 Other blocks of all towns with population between 50,000 and less than 10 lakhs 9 HA or IA or BA blocks of all towns with population less than 50, Other blocks of all towns with population less than 50,000 * Stratum numbers 3, 4, 5 & 6 remain void if there is only one city in an NSS region with a population of 10 lakhs or more. If limitation of sample size does not allow forming so many strata, all blocks of stratum 7 are merged with those of stratum 8 and all blocks of stratum 9 are merged with those of stratum Sample size : A total number of 10,384 FSU s is selected for survey in the central sample at allindia level (rural & urban combined) in the 55th round. For state samples, there is a matching sample size as per the usual matching pattern being followed over the last few rounds. Sample sizes for the whole round for each State/UT and Sector (i.e. rural/ urban) are allocated equally among the four subrounds. Sample FSU s for each subround are selected afresh in the form of two independent subsamples. The details of allocation and survey of FSUs, households and persons are given in Statement T Allocation of firststage units (FSU's): State/ UT level rural sample size is allocated among the rural strata in proportion to population. State/ UT level urban sample size is first allocated among the three classes of towns (i.e. 10 lakh +, to less than 10 lakhs and less than 50,000) in proportion to population. Then sample allocation for each of the three classes of towns, within an NSS region, is further allocated between two strata types consisting of (i) HA/ IA/ BA blocks, and (ii) the rest in proportion to total number of FSU s in the respective frames with double weightage given to the first category of blocks. Stratum level allocations for both rural and urban areas of a subround are made in even numbers in order to facilitate selection of FSU s in the form of two independent sub NSS Report No. 457: Level and Pattern of Consumer Expenditure in India,

13 samples. Subsample numbers are 1 & 2 for subround 1; 3 & 4 for subround 2; 5 & 6 for subround 3 and 7 & 8 for subround Selection of firststage units: For each subround, sample FSU s from each stratum are selected in the form of 2 independent subsamples by following circular systematic sampling with (a) probability proportional to population for all rural strata other than stratum 1, and (b) equal probability for rural stratum 1 as well as all urban strata Formation of hamletgroups in large villages and number of hamletgroups selected for survey : Depending upon the values of approximate present population (P) and approximate total number of nonagricultural enterprises (E), decision is taken to divide the FSU into a fixed number of hamletgroups (hg s the term applicable for rural samples) / subblocks (sb s the term applicable for urban samples) as per the rules given below: Value of P No. of hg s/ sb s formed in the FSU as per population criterion value of E no. of hg s/ sb s formed in the FSU as per enterprise criterion (1) (2) (3) (4) Less than 1200 Less than (and so on) (and so no. of hb s/ sb s = 1 means the whole FSU is considered for listing. [For rural areas of Himachal Pradesh, Sikkim and Poonch, Rajouri, Udhampur and Doda districts of Jammu & Kashmir, number of hg s formed in the village as per population criterion is : 1 for P < 600, 5 for P = 600 to 999, 6 for P = to 1199, 7 for P = 1200 to 1399, 8 for P = 1400 to 1599, and so on.] The number (D) of hamletgroups (hg)/ subblocks (sb) formed in the FSU is such that the higher of the two values as per population and enterprise criteria is chosen. If value of P is less than 1200 (600 for certain hilly areas specified above) as well as value of E is less than 100 for an FSU, hg/ sb formation is not resorted to and the whole FSU is considered for listing. In case hg s/ sb s are formed in the sample FSU, the same is done by more or less equalizing population Formation of Segments within FSU: The hg/ sb having maximum concentration of nonagricultural enterprises is selected with certainty for listing of households/ enterprises. This hg/ sb is referred to as segment 1. From the remaining (D1) hg s/ sb s of the FSU, 2 more hg s/ sb s are selected circular systematically and these 2 selected hg s/ sb s together is referred to as segment 2 for doing a combined listing of households/ enterprises. Thus listing of households/ enterprises is done only in segments 1 and 2 of the FSU. The FSU not requiring hg/ sb formation is to be treated as segment 1 for the purpose of data collection and estimation. NSS Report No. 457: Level and Pattern of Consumer Expenditure in India,

14 3.1.9 Stratification of households : All the households listed in a segment (both rural & urban) are stratified into two second stage strata, viz. affluent households (forming second stage stratum 1) and the rest (forming second stage stratum 2). In rural sector, a household is classified as affluent if the household owns certain s like motor car/ jeep, colour TV, telephone, etc. or owns land / livestock in excess of certain limits. In urban sector, the households having MPCE (monthly per capita consumer expenditure) greater than certain limit for a given town/city are treated as affluent households for the present survey and are included in the frame of second stage stratum 1, and rest of the urban households are included in the frame of second stage stratum Number of households/ enterprises selected for survey: The number of households/ enterprises selected for survey from each FSU in general is given below: segment number of households allotted for consumer expenditure schedule SSS 1 2 total (1) (2) (3) (4) FSU with hg/ sb formation: FSU with no hg/ sb formation: Estimation Procedure: ( SSS means secondstage stratum ) General procedure of selection of households: Sample households are selected from the respective frames by circular systematic sampling with equal probability. For the purpose of systematic sampling, households in the frame of 2nd stage stratum 2 are arranged by means of livelihood by land possessed classes for rural samples and by means of livelihood by MPCE classes for urban samples Approach: This estimation procedure fulfils the twin objectives of providing (a) estimates on subround basis, and (b) the estimate of error from the subsample replicates. Tabulated estimate for a subround is obtained by combining the estimates of the corresponding subsample replicates. Similarly, a tabulated estimate of the Round is obtained by combining the four subroundwise estimates The following notations are being used in this section: a = subscript for the ath stratum r = subscript for the rth subsample replicate ( r = 1,2,,8) q = subscript for the qth subround (q = 1,2,3 & 4) f = subscript for the fth sampled village/ block as First Stage Unit ( FSU ) NSS Report No. 457: Level and Pattern of Consumer Expenditure in India,

15 s = subscript for the sth segment of sampled village/ block ( s = 1 & 2) c = subscript for the cth 2nd stage stratum of households in the sampled village/ block (c = 1,2) j = subscript for the jth sampled household p = subscript for pooled estimate z = size used for selection of an FSU from the sampling frame Z = total of sizes in the sampling frame for the stratum [Note: For urban sector, z=1 and Z=N which is the total number of UFS blocks (FSU s) in the frame.] n = number of sampled FSU surveyed within a stratum and a subsample replicate (including zero cases but excluding casualty and not reported cases) and used for tabulation L= number of subsample replicates surveyed and used for tabulation D = number of hamletgroups/ subblocks formed in rural/ urban sampled FSU H = total number of households listed in the appropriate frame h = number of sampled households surveyed and used for tabulation from the frame E = total number of enterprises listed in the appropriate frame e = number of sampled enterprises surveyed and used for tabulation from the frame y, x = value of characteristic y, x obtained in the sample Y, X = estimated value of the total of characteristic y, x obtained from the sample ESTIMATES OF AGGREGATE: In the formulae given in this section, Y is the estimate of aggregate of a characteristic y for a given stratum (a), and for a particular subround (q) and subsample replicate (r). These formulae are provided for the general case of FSU s having two segments 1 & 2. For the FSU s requiring no hg/ sb formation, the formula is identical to that given for segment 1 while the contribution from segment 2 is taken as zero for estimating a characteristic of household from a given 2nd stage stratum (c) in the selection frame n 2 hfsc Z : Yˆ 1 c = Bfsc yfscj (1) n f = 1 zf s= 1 j= 1 Hfsc Df 1 Hfsc Here B fsc =, for segment 1 (s=1) and B fsc =, for segment 2 (s =2). hfsc 2 hfsc n 2 hfsc Z : Yˆ c = Bfsc yfscj (2) n f = 1 s= 1 j= 1 Hfsc Df 1 Hfsc Here B fsc =, for segment 1 (s=1) and B fsc =, for segment 2 (s =2). hfsc 2 hfsc Note: For tabulating any characteristic from this detailed schedule Yˆ Yc ˆ is to be used. = c NSS Report No. 457: Level and Pattern of Consumer Expenditure in India,

16 COMBINED ESTIMATE FROM SUB SAMPLES: In the previous section, the estimate of the total of a characteristicyˆ as obtained for a stratum (a), for a particular subround (q) and a subsample replicate (r), actually represents Yˆ aqr. The combined /pooled estimate for a particular stratum and a particular subround is computed as the average of subsample replicate estimates and is given below: L Yˆ 1 aq = Yaqr ˆ (3) L r= ESTIMATE OF AGGREGATES FOR A SUBROUND AT STATE/ UT/ REGION LEVEL: If qr Yˆ be the State/ UT/ Region level aggregate from the rth subsample replicate and qth subround, and Yˆ qp, the combined/ pooled estimate of the aggregate based on the whole sample, for a given subround q, then Yˆ qr = Yaqr ˆ (4) based on subsample replicate group r, and L Yˆ 1 qp = Yqr ˆ (5) L r = 1 based on all subsample replicates. a ESTIMATES OF AGGREGATE FOR THE ROUND (i.e. all the 4 subrounds together) AT STATE/ UT/ REGION LEVEL: The estimates of aggregates for the whole round are computed as the simple average of the subround estimates and are given below: 4 1 Y ˆr = Yqr ˆ (6) 4 q= 1 based on subsample replicate1 and 2*and 4 1 Y ˆp = Yqp ˆ (7) 4 based on whole sample. q= 1 *Note: In the Round, subsamples 1, 3, 5 & 7 (in subrounds 1 to 4) are combined together to form subsample replicate1 (annual) while subsamples 2, 4, 6 & 8 (in subrounds 1 to 4) are combined together to form subsample replicate 2 (annual). This has been followed in the remaining sections also.stratum level estimate for the Round is obtained similarly ESTIMATES OF RATIO: If Xˆ & Yˆ be the State/ UT/ Region level aggregate estimates corresponding to variables x and y, then the estimate of ratio is given below: NSS Report No. 457: Level and Pattern of Consumer Expenditure in India,

17 Yˆ R X based on subsample group r, and Yˆ p Rˆ p = (9) Xˆ p based on the whole sample. r ˆ r = (8) ˆr The formulae for Xˆ are obtained similarly by replacing Yˆ by Xˆ and y by x in the above formulae stated in previous sections. Note: Estimates for the subround Rˆ qr and Yˆ qr and Yˆ qp, respectively and Xˆ r and Xˆ p by Rˆ qp has been be obtained by replacing Ŷr and Yˆ p by Xˆ qr and Xˆ qp, respectively ERROR ESTIMATE : The estimated variances of pooled estimates (as computed above) are calculated on the basis of subsample replicate estimates of strata over State/ UT/ Region and obtained as follows: L Var ˆ 1 p = Yar 2 ( Yˆ ) [( ˆ Yˆ ap) (10) L( L 1) a r= 1 L MSE ˆ 1 2 ( Rˆ p) = [( Yˆ ar Yˆ ap) ˆ 2 ˆ ˆ 2 Rp ( Xar Xap) 2Rˆ p( Yˆ ar Yˆ ap)( Xˆ ar Xˆ ap)] 2 L( L 1) Xˆ p a r= (11) Note: Such estimates for the subround have been obtained by suitable replacement as stated in TREATMENT FOR CASUALTY: (I) If H fsc >0 but h rfsc =0 for a particular 2nd stage stratum of households in a FSU with no hamletgroup/ subblock formation (ie. D f =1), it is a case of casualty and the value of n will be reduced by 1. II) If D f > 1 and H fs c >0 but h fs c =0 for s=1 (say, s ) and if it is not a case for the entire FSU, here n will not be reduced by 1 and in this case [(D f 1)/2] x H fsc will be replaced by {H fs c + [(D f 1)/2] x H fsc } in the formula for s=2. III) If D f > 1 and H fs c >0 but h fs c =0 for s=2 (say, s ) and if it is not a case for the entire FSU, here n will not be reduced by 1 and in this case, H fsc will be replaced by {H fsc + [(D f 1)/2] x H fs c } in the formula for s=1. IV) If H fsc >0 but h fsc =0 for a particular 2nd stage stratum of households in both the segments (s = 1 & 2) in an FSU, it is a case of casualty and the value of n will be reduced by 1. Cases with n = 0 at stratum level, if any, have been referred to SDRD for suggesting measures before tabulation. NSS Report No. 457: Level and Pattern of Consumer Expenditure in India,

18 NSS Report No. 457: Level and Pattern of Consumer Expenditure in India,

19 Statement T 0 : Number of villages/ blocks allocated and surveyed and number of households and persons surveyed State/UT no. of villages no. of blocks households persons allotted surveyed allotted surveyed rural urban rural urban (1) (2) (3) (4) (5) (6) (7) (8) (9) Andhra Pr Arunachal Pr Assam Bihar Goa Gujarat Haryana Himachal Pr J & K Karnataka Kerala M.P Maharashtra Manipur Meghalaya Mizoram Nagaland Orissa Punjab Rajasthan Sikkim Tamil Nadu Tripura U.P West Bengal A.& N. Is Chandigarh D.&N. Haveli Daman & Diu Delhi Lakshadweep Pondicherry allindia NSS Report No. 457: Level and Pattern of Consumer Expenditure in India,

20 Section Four Survey Findings 4.0 The NSS survey of household consumer expenditure generates, first and foremost, a very important indicator of human living standards called monthly per capita consumer expenditure (MPCE). The present report as before brings out various facets of this indicator. At first, average MPCE at allindia and state level for rural and urban sectors, and the distributions of households and persons by MPCE for each state and sector, will be presented. The absolute and percentage composition of MPCE by s of, which is also available for each state and sector, will be taken up next. Interstate and ruralurban variation in of cereals the major constituent of the Indian diet will be studied through the estimates obtained of per capita quantity and value of cereal. Finally, the results of this round will be compared with those of earlier rounds of NSS. The major findings of the survey are given below. 4.1 Population structure Statement 1 presents some key indicators of population in India for the bottom MPCE (monthly per capita expenditure) and top MPCE classes. About 75% of the population of the country was found to reside in rural areas and 25% in urban areas. The rural population contained 900 females per males and the urban, 941 females per males Average household size in rural India was 5.0 including 1.9 "children" per household. In urban India average household size was 4.5 with 1.4 "children" per household. In lower MPCE classes, average household sizes were, as usual, much higher than the "all classes" average. At the allindia level average rural household size declined steadily from 6.0 in the lowest MPCE class to 3.6 in the highest. In urban areas the decline was from 6.2 to 2.9. The difference was accounted mainly by the under15 age group. The average number of under15 members per rural household is seen to decline from 3.0 in the lowest MPCE class to 0.7 in the highest class. In urban India the average number of "children" per household is less than 0.9 in the highest MPCE class Statelevel averages of household size are shown in column 15 of Statements 2R & 2U. It is seen that interstate variation in household size was more pronounced than ruralurban variation. The lowest averages are seen in Tamil Nadu (3.94.0) and Andhra Pradesh (4.14.2). The highest averages were in the rural areas of Haryana, Rajasthan and Uttar Pradesh (5.6 or more). NSS Report No. 457: Level and Pattern of Consumer Expenditure in India,

21 Statement 1: Demographic differences between lowest and highest MPCE classes allindia population characteristic rural urban bottom* 5% top* 5% all bottom* 5% top* 5% All (1) (2) (3) (4) (5) (6) (7) average hh size av. no. of adults per hh av. no. of children per hh Sex ratio Sexratio among adults Sexratio among children % of population * ranked by MPCE 4.2 Distribution of household size The distributions of rural and urban households by household size for different States 250 Figure 1: Per distribution of households by size of household and allindia are presented in Statements 4R & 4U. The allindia distributions of household size for rural and urban sectors are presented graphically in Figure 1. It reveals the following: NSS Report No. 457: Level and Pattern of Consumer Expenditure in India,

22 Households with 4 or 5 members accounted for around 40% of all rural or urban households in India. Singlemember households formed 11% of all urban households and were more common than households with 2 members. A large proportion of such households were probably formed by persons living away from their families and near their place of work for economic reasons. 4.2 Distributions of households and persons by MPCE: sectoral and interstate comparison Statements 2R and 2U show distributions of households over 12 classes of MPCE for each state and UT, for rural and urban sectors respectively. Statements 2R and 2U show the corresponding distributions of persons. Also, a chart (Figure 2) giving percentage of population below different levels of MPCE has been provided. It shows that the rural population is more concentrated in the lower levels of MPCE than their counterpart in urban areas. For example, the population having average MPCE below Rs 670 accounts 84% in rural areas while it accounts only 50% in urban areas It may be observed that level of in urban sector is much higher than the rural sector. In rural sector, 10% of population of the country as a whole had MPCE below Rs 255 where as in urban sector the corresponding 10% had MPCE below Rs 350. Similarly, top 10% of population in rural sector had MPCE Rs or more where as for urban sector, Rs 1500 or more The interstate variation is substantial in the distribution of population by MPCE in each of the two sectors. Among the major states, very few were found to have distributions similar to the allindia distrib ution. For the rural sector, Tamil Nadu, Karnataka were "representative" states in this respect. For the urban sector, Andhra Pradesh, West Bengal and Maharashtra can be said to have had distributions similar to the allindia "average" distribution At state level, the percentage of persons in the rural sector below the MPCE level of Rs 255 ranged from 0% for Goa to 26% in Orissa. Among major states this figure is high in Orissa, Madhya Pradesh (19%) and Bihar (16%) and low in Punjab (0.6%), Haryana (1%) and Kerala (1%). For the urban sector the percentage of persons below Rs 350 is high in Bihar (26%), Orissa (21%), UP (19%) and Madhya Pradesh (16%) and low in Punjab (3%), Gujarat (4%) and Haryana (4%) Among the major States, the percentage of population with MPCE exceeding Rs ranged from 3% (Bihar) to 34% (Kerala) in the rural sector. The figure is high in Kerala, Punjab (33%) and Haryana (32%) and low in Bihar, Assam and Orissa (4%), MP (5%) and WB (6%). In the urban sector, too, the lowest percentage was shown by Bihar. However, the range of variation in urban sector was much narrower. NSS Report No. 457: Level and Pattern of Consumer Expenditure in India,

23 100 Figure 2: Percentage of population below different levels of MPCE allindia 90 Cumulative percentage of population rural urban MPCE (Rs) Draft NSS Report No. 457: Level and Pattern of Consumer Expenditure in India,

24 Figure 3R : Percentage of population with MPCE below Rs 255 for major states and allindia : % of population ORS MP BHR ASM UP MAH TN AP WB KAR GUJ RAJ KER HAR PUN allindia Figure 3U: Percentage of population with MPCE below Rs 350 for major states and allindia : % of population BHR ORS UP MP AP ASM MAH TN WB KAR RAJ KER GUJ HAR PUN allindia NSS Report No. 457: Level and Pattern of Consumer Expenditure in India,

25 Figure 4R: Percentage of population with MPCE above Rs for major states and allindia : % of population KER PUN HAR GUJ RAJ TN MAH KAR UP AP WB MP ORS ASM BHR allindia Figure 4U: Percentage of population with MPCE above Rs 1500 for major states and allindia : % of population MAH KER TN KAR PUN GUJ HAR WB AP ASM RAJ UP MP BHR ORS allindia NSS Report No. 457: Level and Pattern of Consumer Expenditure in India,

26 4.3.6 The percentage of population having MPCE below Rs 255 and MPCE Rs or more in rural India has been graphically presented in Figures 3R and 4R, respectively. Similarly, the percentage of population having MPCE below Rs 350 and Rs 1500 or more has been given in Figures 3U and 4U. In these figures, the states have been arranged in descending order. These charts give an idea of the level of living of the people of different states. Bihar and Orissa have higher proportion of persons having low MPCE in both rural and urban areas. This proportion is low in Haryana and Punjab. As implied by the above, the proportion of persons having high MPCE is less in Orissa and Bihar. But this proportion is not very high in urban Punjab and Haryana although it is high in rural Punjab and Haryana For each state/u.t. and allindia, Table 1 of the Appendix gives, in addition to information on distributions of households and persons over classes of MPCE, some idea of average household composition, in terms of number of adult males, adult females, male children and female children per household, in each of the twelve MPCE classes. (Numbers per households are shown in order to avoid decimal points; division by yields per household figures.) 4.4 Average MPCE: states and allindia Averages of MPCE for each state, UT and allindia are shown in the map of India MPCE (Figures 5R & 5U) The allindia rural average of MPCE was Rs 486. At state level, average MPCE was over Rs 370 and below Rs 975 in all 15 major states. Average MPCE was below Rs 385 in two of these states, between Rs 400 and Rs 551 in 10 states, and above Rs 770 in three States AllIndia average MPCE in the urban sector was Rs 855. Statelevel average MPCE exceeded Rs 600 for all 15 major states, and was in the range Rs For two states, and Maharashtra and Tamil Nadu average urban MPCE was around Rs Average urban MPCE exceeded average rural MPCE by more than 60% at the allindia level. In contrast to the rural sector, where average MPCE was seen to exceed Rs 400 in only one state, all urban statelevel MPCE averages except two those of Bihar and Uttar Pradesh were above Rs 400. Punjab, Haryana and Kerala were among the top five states in terms of MPCE in both sectors. For Bihar, per capita consumer expenditure was lower than the allindia average by Rs 63 in the rural sector, and by Rs 105 in the urban. 4.5 Per capita expenditure on different s of : allindia Statements 5R and 5U show the breakup of MPCE by group and the corresponding percentage composition of the total MPCE is given in Statements 6R & 6U for each state UT and allindia. More detailed information on pattern is available in Table 5 of the Appendix, where the breakups of value of are given separately for different segments of the population classified by MPCE. NSS Report No. 457: Level and Pattern of Consumer Expenditure in India,

27 4.5.2 Looking at the allindia columns of Statements 5R and 5U, a picture of "average" rural and urban patterns for the country as a whole emerges. The following are the main features For rural India, per capita 30 days' consumer expenditure of Rs 486 was split up into Rs.289, on an average, for food, and Rs 197 for nonfood. Food included Rs 108 for cereals and cereal substitutes, and Rs 91 for milk, milk products, vegetables and edible oil. Nonfood included Rs 37 for fuel and light, and Rs 39 for clothing and footwear For the urban sector, average MPCE of Rs 855 split up into Rs 411 for food and Rs 444 for nonfood. Of food expenditure, Rs 106 went towards cereals while Rs 145 was spent on milk, milk products, vegetables and edible oil. Rs 66 was spent per person on fuel and light, and Rs 62 on clothing and footwear expenditure levels per capita exceeded urban levels for all the groups except cereals and cereal substitutes. However, the per capita expenditures for 30 days on cereals and cereal substitutes for rural and urban areas are very close to each other Of the gap between urban and rural MPCE, which is of the order of Rs 370, as much as Rs 133 was accounted by the category miscellaneous goods & services" (which includes transport, educational and medical expenses, expenses on nondurable nonfood articles such as toilet articles, rents, and most consumer services). The two groups "beverages, refreshments & processed food", and "milk & milk products", together account for another Rs 65 of the difference Nonfood expenditure per person in the urban sector was more than double of the rural sector, where it is below Rs Percentage breakup of MPCE by group: allindia Statements 6R and 6U express the figures of Statements 5R and 5U as percentages of total MPCE, for each state and allindia. Examination of the allindia columns reveals that, for the country as a whole, (a) The shares in total MPCE of quite a number of groups, including "milk & milk products", "meat, fish & egg", fuel &light, clothing, footwear and medical (institutional) were more or less equal in the two sectors. (b) Important ruralurban differences were present in the share of cereals (rural share exceeding urban by 10 percentage points), and in case of "miscellaneous consumer services" and "education" (both of which had a larger share in the urban sector than in the rural). NSS Report No. 457: Level and Pattern of Consumer Expenditure in India,

28 NSS Report No. 457: Level and Pattern of Consumer Expenditure in India,