Lok Sabha Question No. 1302 (UNSTARRED), answered on 2025-12-08
Subject: Low Income of Poor Citizens
Ministry: FINANCE
Asked by: Shri Murari Lal Meena

## GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF ECONOMIC AFFAIRS

## LOK SABHA UNSTARRED QUESTION NO. 1302

TO BE ANSWERED ON 08.12.2025

## LOW INCOME OF POOR CITIZENS

## 1302.  SHRI MURARI LAL MEENA

Will the Minister of FINANCE be pleased to state:

- (a) whether the Government is aware that the average daily income of the poorest citizens of the country is extremely low, if so, the details of average daily income during the last five years, State-wise;
- (b) whether it is true that income of the rich class has increased significantly during last few years, while the income of the poor class has remained comparatively stable or even decreasing, if so, the details thereof;
- (c) whether the Government agree that current economic policies are making the rich richer and the poor poorer, if so, the details thereof;
- (d) the concrete steps taken by the Government to reduce this growing economic inequality so far; and
- (e) whether the Government is considering to bring any new policy in the coming years to increase the income of the low income groups and strengthen the social security schemes and if so, the details thereof?

## ANSWER

## MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI PANKAJ CHAUDHARY)

(a) & (b): In India, the data on the class distribution of income is not compiled centrally. However, the  estimates  from  the  Household  Consumption  Expenditure  Survey  (HCES)  conducted  by  the Ministry of Statistics and Programme Implementation (MoSPI) could be used as a proxy to capture the distribution of income in terms of consumption expenditure.

According to the latest HCES 2023-24, the average monthly per capita consumption expenditure (MPCE) has risen from ₹ 3773 in 2022-23 to ₹ 4122 in 2023-24 in rural areas, and from ₹ 6459 in 2022-23 to ₹ 6996  in  2023-24  in  urban  areas.  In  addition,  the  Gini  coefficient,  a  key  measure  of  inequality,  has improved significantly, declining from 0.266 to 0.237 in rural areas and from 0.314 to 0.284 in urban areas between 2022-23 and 2023-24. The increase in the average MPCE in 2023-24 from the 2022-23 level has been the maximum for the bottom 5 to 10 per cent of India's population, in both rural and urban areas.

In addition, as per the discussion paper on Multidimensional Poverty in India since 2005-06 published by NITI Aayog, multidimensional poverty in India is estimated to have declined from 29.17 per cent in 2013-14 to 11.28 per cent in 2022-23, implying that 24.8 crore people have escaped poverty during this period.

Based on the recently released HCES data for 2022-23 and 2023-24, the state-wise average MPCE for rural and urban areas is placed in Annexure I.

(c), (d) & (e): No, Sir. The primary policy objective of the Government is the development of all sections of the population. Its focus on inclusive growth is reflected in its commitment to 'Sabka Saath, Sabka Vikas'  to  reduce  poverty  and  inequality,  provide  social  security,  income  generation  and  livelihood options, and improve the quality of life of the vulnerable sections of the population in the country.

With  these  objectives,  the  Government  is  implementing  a  number  of  targeted  programmes  such  as Pradhan  Mantri  Awas  Yojana,  Mahatma  Gandhi  National  Rural  Employment  Guarantee  Scheme, Deendayal  Antyodaya  Yojana  -  National  Rural  Livelihoods  Mission,  National  Social  Assistance Programme,  Deen  Dayal  Upadhyaya  Grameen  Kaushalya  Yojana,  Pradhan  Mantri  Suraksha  Bima Yojana, Pradhan Mantri Jeevan Jyoti Bima Yojana, Atal Pension Yojana, Pradhan Mantri Mudra Yojana, Stand Up India Scheme, Umbrella Programmes for Development of Minorities and Other Vulnerable Groups; Rashtriya Krishi Vikas Yojna; fund transfer under PM-KISAN, PM Fasal Bima Yojana claim payments; fertiliser subsidies; interest subvention for dairy cooperatives;  Agri-Infrastructure Fund for farm gate infrastructure etc. Further, the Government has implemented various programmes, including Jal Jeevan Mission, Swachh Bharat Abhiyan, PM Ujjwala Yojana, PM Saubhagya Yojana, Ayushman Bharat, Pradhan Mantri Jan-Dhan Yojana, etc., to bring about overall improvement in the quality of life of the people through universal access to basic amenities.

The Government has a multi-pronged approach that addresses economic inequality, promotes social mobility, and ensures fair economic participation. It has been prioritising employment generation and improving  employability.  The  annual  periodic  labour  force  survey  (PLFS)  report  shows  that  labour markets have recovered beyond pre-COVID levels in both urban and rural areas. The unemployment rate for individuals aged 15 and above has decreased from 5.8 per cent in 2018-19 to 3.2 per cent in 202324.

Various schemes and programs have been implemented to expand job opportunities. Besides, the focus on  growth-promoting  measures  like  robust  capital  expenditure,  continuing  improvements  in  logistic facilities,  urban  development,  promotion  of  MSMEs,  agriculture  and  manufacturing  are  promoting overall economic growth, thereby improving employment and purchasing power of  the citizens.

The Government is also implementing the Skill India Mission (SIM) to provide skill, re-skill, and upskill training through an extensive network of skill development centres, schools, colleges, and institutes. The SIM aims at enabling the youth of India to get future-ready, equipped with industry-relevant skills. Besides, the PM Vishwakarma scheme was launched in September 2023 to provide end-to-end support to artisans and craftspeople of 18 trades who work with their hands and tools. India has a progressive direct taxation regime wherein a person in the higher bracket pays income tax at higher rates as compared to a person in the lower income bracket. Further, a surcharge on income-tax is applicable to persons having income above a certain level. Thus, a robust taxation system is already in place vis-à-vis taxation of higher brackets of income earners.

The  Government  has  proposed  significant  measures  in  the  Union  Budget  2025-26  to  enhance  the spending power of the middle class. The Union Budget has proposed that there will be no income tax payable up to an income of ₹12 lakh per annum under the new tax regime. The Budget has also  proposed a change in slabs and rates of personal income tax across the board to benefit taxpayers. The new structure is expected to substantially reduce the taxes of the middle class and leave more money in their hands. The other measures of the Government to benefit the middle class include enhanced pension schemes, support for affordable housing, public health schemes and financial  support to entrepreneurs.

## Average MPCE for each State/UT in 2023-24 (in ₹)

| State/UT                           | Rural   | Urban   |
|------------------------------------|---------|---------|
| Andhra Pradesh                     | 5,327   | 7,182   |
| Arunachal Pradesh                  | 5,995   | 9,832   |
| Assam                              | 3,793   | 6,794   |
| Bihar                              | 3,670   | 5,080   |
| Chhattisgarh                       | 2,739   | 4,927   |
| Delhi                              | 7,400   | 8,534   |
| Goa                                | 8,048   | 9,726   |
| Gujarat                            | 4,116   | 7,175   |
| Haryana                            | 5,377   | 8,428   |
| Himachal Pradesh                   | 5,825   | 9,223   |
| Jharkhand                          | 2,946   | 5,393   |
| Karnataka                          | 4,903   | 8,076   |
| Kerala                             | 6,611   | 7,783   |
| Madhya Pradesh                     | 3,441   | 5,538   |
| Maharashtra                        | 4,145   | 7,363   |
| Manipur                            | 4,531   | 5,945   |
| Meghalaya                          | 3,852   | 7,839   |
| Mizoram                            | 5,963   | 8,709   |
| Nagaland                           | 5,155   | 8,022   |
| Odisha                             | 3,357   | 5,825   |
| Punjab                             | 5,817   | 7,359   |
| Rajasthan                          | 4,510   | 6,574   |
| Sikkim                             | 9,377   | 13,927  |
| Tamil Nadu                         | 5,701   | 8,165   |
| Telangana                          | 5,435   | 8,978   |
| Tripura                            | 6,259   | 8,034   |
| Uttar Pradesh                      | 3,481   | 5,395   |
| Uttarakhand                        | 5,003   | 7,486   |
| West Bengal                        | 3,620   | 5,775   |
| A &NIslands                        | 7,771   | 10,453  |
| Chandigarh                         | 8,857   | 13,425  |
| Dadra &Nagar Haveli and Daman &Diu | 4,311   | 6,837   |
| Jammu &Kashmir                     | 4,774   | 6,327   |
| Ladakh                             | 5,010   | 7,533   |
| Lakshadweep                        | 6,350   | 6,377   |
| Puducherry                         | 7,598   | 8,637   |
| All-India                          | 4,122   | 6,996   |

## Average MPCE for each State/UT in 2022-23 (in ₹)

| State/UT                           | Rural   | Urban   |
|------------------------------------|---------|---------|
| Andhra Pradesh                     | 4,870   | 6,782   |
| Arunachal Pradesh                  | 5,276   | 8,636   |
| Assam                              | 3,432   | 6,136   |
| Bihar                              | 3,384   | 4,768   |
| Chhattisgarh                       | 2,466   | 4,483   |
| Delhi                              | 6,576   | 8,217   |
| Goa                                | 7,367   | 8,734   |
| Gujarat                            | 3,798   | 6,621   |
| Haryana                            | 4,859   | 7,911   |
| Himachal Pradesh                   | 5,561   | 8,075   |
| Jharkhand                          | 2,763   | 4,931   |
| Karnataka                          | 4,397   | 7,666   |
| Kerala                             | 5,924   | 7,078   |
| Madhya Pradesh                     | 3,113   | 4,987   |
| Maharashtra                        | 4,010   | 6,657   |
| Manipur                            | 4,360   | 4,880   |
| Meghalaya                          | 3,514   | 6,433   |
| Mizoram                            | 5,224   | 7,655   |
| Nagaland                           | 4,393   | 7,098   |
| Odisha                             | 2,950   | 5,187   |
| Punjab                             | 5,315   | 6,544   |
| Rajasthan                          | 4,263   | 5,913   |
| Sikkim                             | 7,731   | 12,105  |
| Tamil Nadu                         | 5,310   | 7,630   |
| Telangana                          | 4,802   | 8,158   |
| Tripura                            | 5,206   | 7,405   |
| Uttarakhand                        | 4,641   | 7,004   |
| Uttar Pradesh                      | 3,191   | 5,040   |
| West Bengal                        | 3,239   | 5,267   |
| A &NIslands                        | 7,332   | 10,268  |
| Chandigarh                         | 7,467   | 12,575  |
| Dadra &Nagar Haveli and Daman &Diu | 4,184   | 6,298   |
| Jammu &Kashmir                     | 4,296   | 6,179   |
| Ladakh                             | 4,035   | 6,215   |
| Lakshadweep                        | 5,895   | 5,475   |
| Puducherry                         | 6,590   | 7,706   |
| All-India                          | 3,773   | 6,459   |