India’s per capita expenditure rose at a rapid pace during the last two years. Spending increased 19% annually in rural areas and 17% in urban areas, which indicates rising income and a reduction in poverty levels.
Latest data put out by the ministry of statistics and programme implementation show monthly per capita expenditure (MPCE), measured in terms of uniform reference period, for urban areas rising to Rs 2,399.24 in 2011-12 from Rs 1,785.81 in 2009-10. Rural MPCE rose faster to Rs 1,278.94 from Rs 9,27.70 during the same period.
Measured with a new formula known as modified mixed reference period, MPCE rose to Rs 2,629.65 in 2011-12 from Rs 1,984.46 in 2009-10 for urban areas while it rose to Rs 1,429.96 from R1,053.04 in rural areas.
Whichever way it is looked at, the rise in MPCE indicates a fall in poverty levels. Last year, the preliminary data showed MPCE at Rs 2,401.68 for urban areas and Rs 1,281.45 for rural areas which translates into poverty levels of 26.3%, a sharp decline from over 30% until 2009-10.
The data showed urban households spend 42.6% on food, 6.9% on education, 6.7% on fuel and light, 6.2% on rent and 6.4% on clothing. In case of rural households, the spending on food is 52.9% while it is 8% for fuel, 7% on clothing and 6.7% on medical costs.
The poorest 10% of India?s rural population had an average MPCE of R616-710 while the poorest 10% of the urban population had an average MPCE of R827-983.
The top 10% of the rural population had an average MPCE of Rs 2886 while it was Rs 5,30-10,2812 for the top 10% in urban area.