Chhattisgarh, West Bengal lead in social welfare expenditure in rural areas

After accounting for items received free of cost by households through various social welfare programmes, consumption expenditure by the households in rural areas was nearly 3 per cent higher, according to an analysis of the 2023-24 Household Consumption Expenditure Survey (HCES).

 

Data showed that the monthly per capita consumption expenditure (MPCE), taking into account imputed values, stood at Rs 4,247 — 3.03 per cent higher than the expenditure done by the households without accounting for items received free of cost.

 

Imputed values refer to the monetary worth of items received free of cost by households through various social welfare programmes.

 

 

In comparison, in 2022-23, the rise in MPCE after accounting for imputed values was 2.31 per cent, with the adjusted MPCE reaching Rs 3,860. This indicates increased spending on welfare schemes in 2023-24. In urban areas, the overall increase in MPCE was 1.17 per cent after adjusting for imputed values, slightly higher than the 0.96 per cent recorded in 2022-23. 

 

This trend indicates a higher spending capacity, with rural areas witnessing a more pronounced increase in MPCE after accounting for imputed values. The adjustment highlights the role of free items in influencing consumption patterns and expenditure trends across both rural and urban regions.

 

Chhattisgarh leads the states with the highest increase in average imputed MPCE in rural areas, recording an increase of 6.86 per cent. This reflects higher spending on social welfare programmes by the state government. Chhattisgarh is followed by West Bengal, which recorded an increase of 5.39 per cent, Odisha (4.53 per cent), Assam (4.43 per cent), Telangana (4.42 per cent) in 2023-24.

 

P C Mohanan, former acting chairman, National Statistical Commission (NSC), said that people in these states are better able to avail themselves of the benefits provided by the government as a higher tribal population in these regions often correlates with increased spending on social welfare programmes by their respective governments. 

 

In contrast, in 2022-23, West Bengal led the states in spending on social welfare programmes, with Karnataka featuring instead of Odisha in the top five.

 

States with the lowest spending on social welfare programmes include Mizoram, which showed no increase in average imputed MPCE, reflecting a 0 per cent increase. It is followed by Himachal Pradesh (0.14 per cent), Kerala (0.94 per cent), Punjab (0.98 per cent), and Sikkim (1.03 per cent).

 

“States with an already higher average MPCE tend to spend less on social welfare programmes, as their populations would be relatively better off,” said Mohanan.

 

Despite no increase in imputed values, Mizoram recorded a higher average MPCE in both rural (Rs 5,963) and urban (Rs 8,709) areas compared to the all-India average of Rs 4,122 in rural areas and Rs 6,996 in urban areas. A similar trend can be observed across all the bottom five states.