Lok Sabha Question No. 858 (UNSTARRED), answered on 2018-02-07
Subject: Per Capita Income and Expenditure
Ministry: PLANNING
Asked by: NALIN KUMAR KATEEL

## GOVERNMENT OF INDIA MINISTRY OF PLANNING

## LOK SABHA UNSTARRED QUESTION No. 858 TO BE ANSWERED ON 07.02.2018

## PER CAPITA INCOME AND EXPENDITURE

## 858. SHRI NALIN KUMAR KATEEL:

Will the Minister of PLANNING be pleased to state:

- (a) whether it is true that there is constant rise in the inequality in the country and if  so, the details thereof;
- (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) whether the Government has maintained any data to indicate the expenditure made by the Government on education, health and other social services for every individual of the country;
- (d) if so, the details thereof separately on education and health during the last three years; and
- (e) whether it is also true that no significant progress has been made on the ground about the expenditure and if so, the reasons therefor and the action taken by the Government in this regard?

## 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 (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 .

(a) 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.

## Annexure as referred in reply of part (a) of the Lok Sabha Unstarred Question No 858 to be answered on 07.02.2018

## Lorenz ratios of distribution of MPCE (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 as referred in reply of part (b) to (e) of the Lok Sabha Unstarred Question No. 858 to be answered on 07.02.2018

## 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. 858 to be answered on 07.02.2018

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

| characteristic                      | Year    | Year    | Year    |
|-------------------------------------|---------|---------|---------|
|                                     | 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. 858 to be answered on 07.02.2018

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

## 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 Xrays, 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.