The study named, ‘Key Indicators of Household Expenditure on Services and Durable Goods,’ was first-of-its-kind survey on household expenditure on services and durable goods, derived from the 72nd round of the National Sample Survey.
It covered 47,535 households in rural areas and 36,065 households in urban areas.
In rural areas, expenditure on transport equipment accounted for 83 per cent of total expenditure on durable goods when the purchase was done mainly for enterprise purpose. It was followed by expenditure on heating, cooling and electricity generation devices, information technology (IT)communication devices and productive equipment accounted for four per cent of the budget separately.
A similar pattern was observed in urban areas where expenditure on transport equipment accounted for a lion’s share of total expenditure on durables, followed by expenditure on heating, cooling and electricity generation devices (about 7.9 per cent) and IT and communication devices (7.8 per cent) for enterprises and jewellery for domestic consumption.
In the miscellaneous consumer services category, which includes items such as communication services, domestic and business services, households spent the most on communication services.
As per the survey, “In rural areas, communication services accounted for the highest share (25.3 per cent) followed by barber & beauty shops (11. per cent), TV & radio services (10.6 per cent), repair & maintenance (10.3 per cent) and tailoring services (10.2 per cent).”
In urban areas, too, communication services accounted for the highest share of budget at 26 per cent. It was followed by domestic services (12.1 per cent), TV & radio services (10.2 per cent) and recreational & cultural services (9.9 per cent). In absolute terms, rural and urban households spent Rs 36.3 and Rs 102.5, respectively, on communication.
The survey revealed that in terms of monthly per capita expenditure also, highest expenditure was found on communication services amounting to Rs36.35 and Rs102.46 in rural and urban areas, respectively. The expenditure on “food expenditure in hotels” was Rs 68.48 and Rs 178.00 in rural and urban areas respectively.