Lok Sabha Question No. 3127 (UNSTARRED), answered on 2018-03-14
Subject: Rising Inequality
Ministry: PLANNING
Asked by: NALIN KUMAR KATEEL, DODDAALAHALLI KEMPEGOWDA SURESH

## GOVERNMENT OF INDIA MINISTRY OF PLANNING

## LOK SABHA UNSTARRED QUESTION No. 3127 TO BE ANSWERED ON 14.03.2018

## RISING INEQUALITY

## 3127. SHRI NALIN KUMAR KATEEL: SHRI D.K. SURESH:

Will the Minister of PLANNING be pleased to state:

- (a)   whether there is  constant rise in inequality  in the country;
- (b)   if so, the details thereof and the reasons therefor;
- (c)  whether the Government has any data indicating the growth of per capita income and expenditure of the country;
- (d)    if  so, the  details  thereof  and  the  expenditure  made  by  the  Government  on  education,  health  and  other social services on every individual during the last three years and the current year;
- (e)  whether it is true that  no significant progress has been made on the ground which  reflect the expenditure made in this regard; and
- (f)  if so, the response of the Government and the steps being proposed to ensure that the money spent on development of the country yield desired outcome?

## ANSWER

## MINISTER OF STATE (INDEPENDENT CHARGE) FOR THE MINISTRY OF PLANNING AND MINISTER OF STATE IN THE MINISTRY OF CHEMICALS & FERTILIZERS

## (RAO INDERJIT SINGH)

(a) to (b) In India, the data on class distribution of income is not compiled centrally. However, information on Consumption inequalities (in terms of Lorenz ratio), separately for rural and urban area, based on last three quinquennial Household Consumer Expenditure surveys conducted by National Sample Survey Office (NSSO) in its 61st (July, 2004-June, 2005), 66th (July, 2009-June, 2010) and 68th (July, 2011-June, 2012) round) are available and are given at Annexure-I .

(c) to (f) The information on growth rate of per capita income  is given at Annexure II. The Monthly per Capita Expenditure overall as well as on education and health on the basis of NSSO quinquennial Consumer Expenditure Surveys are given at Annexure-III and Annexure-IV respectively . Explanatory Note in respect of concepts, definitions etc. used for above information is given at Annexure-V. Government has initiated several targeted schemes that aim to improve the quality of life of the people and reduce population below poverty line in the country through direct intervention by implementing specific poverty  reduction and mitigation programmes. These  include  Pradhan  Mantri  Jan-DhanYojana  (PMJDY),  Mahatma  Gandhi  National  Rural  Employment Guarantee Scheme (MGNREGS), Deendayal Antyodaya Yojana - National Rural Livelihoods Mission (DAYNRLM), Deendayal Antyodaya Yojana - National Urban Livelihoods Mission (DAY-NULM), Atal Mission for Rejuvenation and Urban Transformation Mission (AMRUT), Pradhan Mantri Awaas Yojana (PMAY), National Health Mission (NHM), Sarva Sikhsha Abhiyaan (SSA), Integrated Child Development Scheme (ICDS), MidDay Meal Scheme (MDMS), Swachh Bharat Mission, National Social Assistance Programme (NSAP), Targeted Public Distribution System (TPDS)/ National Food Security Act (NFSA), road connectivity through the Pradhan Mantri Gram Sadak Yojana (PMGSY), Pradhan Mantri Jeevan Jyoti BimaYojana, the Pradhan Mantri Suraksha Bima Yojana, Atal Pension Yojana etc. The emphasis of the Government is on 'Sabka Saath, Sabka Vikas' which symbolizes inclusive development.

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## Annexure as referred in reply of part (a) to (b)  of the Lok Sabha Unstarred Question No. 3127 to be answered on 14.03.2018

## Lorenz ratios of distribution of MPCE (Monthly per capita expenditure) (Uniform Reference Period), all-India

| sector   | Lorenz ratio of distribution of MPCE   | Lorenz ratio of distribution of MPCE   | Lorenz ratio of distribution of MPCE   |
|----------|----------------------------------------|----------------------------------------|----------------------------------------|
| sector   | 2011-12                                | 2009-10                                | 2004-05                                |
| (1)      | (2)                                    | (3)                                    | (4)                                    |
| rural    | 0.307                                  | 0.291                                  | 0.30                                   |
| urban    | 0.385                                  | 0.381                                  | 0.37                                   |

Ref: i. NSS Report No. 555: Level and Pattern of Consumer Expenditure, 2011-12;

- ii.   NSS Report No. 538: Level and Pattern of Consumer Expenditure, 2009-10 ; and
- iii. NSS Report No. 508: Level and Pattern of Consumer Expenditure, 2004-05

Annexure-II

## Annexure as referred in reply of part (c) to (f) of the Lok Sabha Unstarred Question No. 3127 to be answered on 14.03.2018

## Growth Rate of Per Capita Income

| Period                         |   Growth in per capita income |
|--------------------------------|-------------------------------|
| 2012-13                        |                           3.3 |
| 2013-14                        |                           4.6 |
| 2014-15                        |                           6.3 |
| 2015-16                        |                           6.8 |
| 2016-17(Provisional Estimates) |                           5.7 |

Source: National Accounts Division, Central Statistics Office

## Annexure as referred in reply of part (c) to (f) of the Lok Sabha Unstarred Question No. 3127 to be answered on 14.03.2018

Estimates of all-India average MPCEURP from last three quinquennial surveys of consumer expenditure done by NSS in its 61 st (July, 2004-June, 2005), 66 th (July, 2009-June, 2010) and 68 th  (July, 2011-June, 2012) round survey

Growth in MPCEURP at current and constant prices since 2004-05, all-India

|                                     | Year    | Year    | Year    |
|-------------------------------------|---------|---------|---------|
| characteristic                      | 2004-05 | 2009-10 | 2011-12 |
| MPCE: rural (Rs.): current prices   | 558.78  | 927.70  | 1278.94 |
| Price deflator for rural sector*    | 319     | 494     | 580     |
| MPCE: rural (Rs.) at 1987-88 prices | 175.17  | 187.79  | 220.51  |
| MPCE: urban (Rs.): current prices   | 1052.36 | 1785.81 | 2399.24 |
| Price deflator for urban sector*    | 338     | 503     | 599     |
| MPCE: urban (Rs.) at 1987-88 prices | 311.35  | 355.03  | 400.54  |

Source: NSS Report No. 555: Level and Pattern of Consumer Expenditure, 2011-12

## Annexure-IV

## Annexure as referred in reply of part (c) to (f) of the Lok Sabha Unstarred Question No. 3127 to be answered on 14.03.2018

## Value of consumption (Rs) of items per person for a period of 30 days for MPCE (URP) using reference period of 30 days since 2004-05

|                            | Year    | Year    | Year    |
|----------------------------|---------|---------|---------|
| Item group                 | 2004-05 | 2009-10 | 2011-12 |
| rural                      |         |         |         |
| education                  | 14.90   | 26.51   | 39.84   |
| health (institutional)     | 10.03   | 13.97   | 23.15   |
| health (non-institutional) | 26.93   | 39.26   | 64.52   |
| urban                      | urban   |         |         |
| education                  | 52.69   | 92.91   | 135.73  |
| health (institutional)     | 13.05   | 25.04   | 33.13   |
| health (non-institutional) | 41.54   | 64.74   | 98.85   |

Source:

NSS Report No. 555: Level and Pattern of Consumer Expenditure, 2011-12;

NSS Report No. 538: Level and Pattern of Consumer Expenditure, 2009-10;

NSS Report No. 508: Level and Pattern of Consumer Expenditure, 2004-05

## Annexure-V

The NSS concept of MPCE, therefore, is defined first at the household level (household monthly consumer expenditure ÷ household size). This measure serves as the indicator of the household's level of living.

Each individual's MPCE is defined as the MPCE of the household to which the person (man, woman or child) belongs. This assigns to each person a number representing his or her level of living. The distribution of persons by their MPCE (i.e., their household MPCE) can then be built up, giving a picture of the population classified by economic level.

The MPCE measure may be defined as follows.

Uniform Reference Period MPCE (or MPCEURP ): This is the measure of MPCE obtained by the NSS consumer expenditure survey (CES) when household consumer expenditure on each item is recorded for a reference period of 'last 30 days' (preceding the date of survey).

Education :  This includes expenditure on goods purchased for the purpose of education, viz., books and journals (first-hand  or  second-hand),  newspapers,  stationery,  educational  CD,  etc,  and  also  magazines,  novels  and  other fiction. It also includes fees paid to educational institutions (e.g., schools, colleges, universities, etc.) on account of tuition and other fees like game fees, library fees, etc., and payment to private tutors. Fees for shorthand and typing courses, fees for music, dancing and swimming lessons, and fees for training in nursing, physiotherapy, etc., are included. Occasional payments to the school fund made on account of charities, and 'donations' generally, are not included here, unless they are charged by the educational institution as compulsory payments.

Medical expenses: This includes expenditure on medicine of different types and on medical goods; also, payments made to doctor, nurse, etc., as professional fees and those made to hospital, nursing home, etc. for medical treatment, and  expenditure  incurred  for  clinical  tests,  including  X-rays,  ECG,  pathological  tests,  etc.  Medical  expenditure reimbursed  by  employer  or  by  insurance  companies  is  included.  Expenditure  on  all  family  planning  devices  is included, and also expenditure on medical termination of pregnancy. Medical insurance payments are excluded.

Medical:  institutional  and  non-institutional  expenditure: The  distinction  between  institutional  and  noninstitutional medical expenses lies in whether the expenses were incurred on medical treatment as an in-patient of a medical institution (institutional), or otherwise (non-institutional). Medical institution here covers private as well as Government institutions such as hospitals and nursing homes.