The government today said expenditure of people in the country rose by about Rs 7.21 lakh crore in 2010-11 due to inflation and increase in consumption.
Citing Central Statistics Office (CSO) data, Minister of State for Finance Namo Narain Meena said that private consumption expenditure during last fiscal at current price (base period 2010-11) stood at Rs 45,02,974 crore while it was Rs 37,82,013 crore in the previous fiscal.
CSO collects information of private consumption expenditure in constant and current prices, the minister said in a written reply to Rajya Sabha.
The difference between the figures based on current prices during the two fiscals was Rs 7,20,961 crore.
"These estimates also include the consumption of non profit institutions serving households [NPISH]," Meena said.
The NPISH's consists of non-profit institutions which are separate legal entities and which serve households. They are mostly in the private sector which provide goods or services to households free or at prices that are not economically significant.
To a query on the level of additional expenditure in the last fiscal due to inflation, Meena said: "The government does not make such estimates."
The minister said that as per CSO data, private consumption expenditure on the basis of constant price (with a base year of 2004-05) was Rs 30,91,328 crore in 2010-11 as against Rs 28,46,410 crore in the previous fiscal. The difference stood at Rs 2,44,918 crore.
Credit ratings agency Crisil, in a study released in June, had suggested that Indian households incurred an additional expenditure of whopping Rs 5.8 lakh crore in the last three years because of spiralling prices.
