Per capita expenditure: Purchasing power increases more in urban areas, says Govt

Written by PTI | New Delhi | Updated: Aug 13 2013, 22:31pm hrs
BusinessThe MPCE in urban areas increased by 433.50 per cent to Rs 2,477.02 in 2011-12.
The monthly per capita expenditure (MPCE), which reflects purchasing power, has increased more in urban areas than in rural areas, Parliament was informed on Tuesday.

"No data has been collected in this regard separately for metro cities. However, increase in MPCE is more in urban areas as compared to rural areas," Statistics Minister Srikant Jena said in a written reply to the Lok Sabha.

Jena was replying to a question whether government is aware that purchasing power and spending habits of people are increasing in rural areas and towns more than in metro cities.

The minister's statement revealed that MPCE in rural areas grew by 349.9 per cent to 1,287.17 in 2011-12 from Rs 286.10 in 1993-94 at current prices. Similarly, it rose by 36.52 per cent in villages to 221.93 in 2011-12 compared to Rs 162.56 in 1993-94 at constant prices.

The MPCE in urban areas increased by 433.50 per cent to Rs 2,477.02 in 2011-12 from Rs 464.30 in 1993-94 at current price. It went up by 54.08 per cent to Rs 413.53 in cities in 2011-12 from Rs 268.38 in 1993-94.

Elaborating further the minister said, "The changes in spending habits by people are attributable to change in life style, food habits, health consciousness due to increase in income levels of people because of different government programmes taken up from time to time."

Meanwhile replying to another Lok Sabha question, the minister said that the per capita income has increased by 11.7 per cent to Rs 68,757 in 2011-12 at current prices from Rs 61,564 in 2011-12.

According to Jena, the per capita income grew by 13.7 per cent in 2011-12, 17.1 per cent in 2010-11 and 13.4 per cent in 2009-10.