ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

Consumption ExpenditureSubscribe to Consumption Expenditure

Impact of MGNREGA on Consumption Expenditure of Households

This study attempts to quantify the impact of the Mahatma Gandhi National Rural Employment Guarantee Act programme on the level and pattern of consumption expenditure of rural households at the national level using a difference-in-differences method. The findings indicate an increase in the monthly per capita consumption expenditure of participant households and a change in their consumption patterns with the share of high-value and nutrient-rich food in their consumption basket going up. Further the participant households have also smoothened their consumption by investing in assets such as durable goods.

India's 'Poverty of Numbers'

The number of "poor" derived by applying price adjustment to an old consumption basket, which is largely what official poverty measures have done, are very different from estimates based on actual consumption baskets that have changed over time. For instance, the share of cereals in household expenditure halved between 1993-94 and 2011-12 in rural areas. In the light of this, we ask if all expenditure would be on food, what percentage of the population would be unable to meet the prescribed calorie requirement? Adding a "minimum" level of expenditure on clothing-bedding-footwear, fuel and light, and conveyance to the "derived" sum of food expenditure provides a second counterfactual. Similarly, the cumulative addition of expenditure on other consumer goods and services provides further counterfactual scenarios.

Doubling Farmers' Incomes by 2022

How realistic is the objective of the Government of India to double the income of farmers by 2022? Is there a precedent? From estimates of change in income of agricultural households over the period 2003-13, this article suggests what needs to be done to achieve a doubling of real incomes. A focus on income from cultivation alone will be inadequate. Policy aimed at increasing net income from animal farming will be key.
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