Household Consumption Expenditure Survey (HCES)

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Subject : Economy

Section: National Income

Concept :

The Ministry of Statistics and Programme Implementation has formed a new Standing Committee on Statistics (SCoS) to advise on official data, including the household surveys carried out by the National Sample Survey Office (NSSO).
With 14 members, the new panel is also leaner and more likely to deliver quality guidance. The 28-member economic data review panel may have found it tougher to establish a coherent consensus.
One of the new panel’s first tasks will likely pertain to the results of the Household Consumption Expenditure Survey (HCES) by the NSSO over the past year, and it must sensitise users on the methods deployed and interpretational nuances they necessitate.

Household Consumer Expenditure Survey (HCES)

The HCES is traditionally a quinquennial (recurring every five years) survey conducted by the government’s National Sample Survey Office (NSSO).
It is designed to collect information on the consumer spending patterns of households across the country, both urban and rural.
Typically, the Survey is conducted between July and June.

Why HCES?

The HCES is used to arrive at estimates of poverty levels as well as review key economic indicators like Gross Domestic Product (GDP).
The results of the survey are also utilised for updating the consumption basket and for base revision of the Consumer Price Index.
It helps generate estimates of household Monthly Per Capita Consumer Expenditure (MPCE) as well as the distribution of households and persons over the MPCE classes.
It is used to arrive at estimates of poverty levels in different parts of the country and to review economic indicators such as the GDP, since 2011-12.

Why need this survey?

India has not had any official estimates on per capita household spending.
It provides separate data sets for rural and urban parts, and also splice spending patterns for each State and Union Territory, as well as different socio-economic groups.