Lok Sabha Question No. 2702 (UNSTARRED), answered on 2018-01-03
Subject: Spending on Social Sector
Ministry: PLANNING
Asked by: B.N. CHANDRAPPA, DODDAALAHALLI KEMPEGOWDA SURESH

## GOVERNMENT OF INDIA MINISTRY OF PLANNING

## LOK SABHA UNSTARRED QUESTION NO. 2702 TO BE ANSWERED ON 03.01.2018

## SPENDING ON SOCIAL SECTOR

## 2702. SHRI B.N. CHANDRAPPA: SHRI D.K. SURESH:

Will the Minister of PLANNING be pleased to state:

- (a) whether there is a constant rise in inequality  in the country and if  so, the details thereof  and the reasons therefor;
- (b) whether the Government has any data indicating the growth of per capita income and expenditure of the country and if so, the details thereof;
- (c) the details of per capita expenditure made on education, health and other social service sectors during the last three years and the current year;
- (d) whether there is no significant progress made on  ground to reflect expenditure on these sectors; and
- (e) if so, the details thereof?

## ANSWER

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

## (RAO INDERJIT SINGH)

(a) In India, the data on class distribution of income is not compiled centrally. However, information on consumption inequalities , 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 .

(b) to (e) 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.

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## Annexure as referred in reply of part (a) of the Lok Sabha Unstarred Question No. 2702 to be answered on 03.01.2018

## Lorenz ratios of distribution of MPCE (Uniform Reference Period), all-India

|        | 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 as referred in reply of part (b) to (e) of the Lok Sabha Unstarred Question No. 2702 to be answered on 03.01.2018

## 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 (b) to (e) of the Lok Sabha Unstarred Question No. 2702 to be answered on 03.01.2018

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 as referred in reply of part (b) to (e) of the Lok Sabha Unstarred Question No. 2702 to be answered on 03.01.2018

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                      | rural   | rural   | 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   | 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

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 (firsthand 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 non-institutional 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.