Topic: Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment.
6) Explain how consumer spending surveys can aid gauge demand and growth trends in the economy? What will be the impact of withholding the current CES on policy making? Elucidate.(250 words)
Why this question:
Recently, the government announced that in view of “data quality issues” the Ministry of Statistics and Programme Implementation had decided not to release the results of the all-India Household Consumer Expenditure Survey conducted by the National Statistical Office (NSO) during 2017-2018.Thus the question.
Key demand of the question:
One must discuss the significance of consumer spending surveys and their significance in policy making.
Directive:
Explain – Clarify the topic by giving a detailed account as to how and why it occurred, or what is the particular context. You must be defining key terms where ever appropriate, and substantiate with relevant associated facts.
Elucidate – Give a detailed account as to how and why it occurred, or what is the particular context. You must be defining key terms where ever appropriate, and substantiate with relevant associated facts.
Structure of the answer:
Introduction:
In brief narrate What CES is.
Body:
The CES is traditionally a quinquennial (recurring every five years) survey conducted by the government’s National Sample Survey Office (NSSO) that is designed to collect information on the consumption spending patterns of households across the country, both urban and rural.
The data gathered in this exercise reveals the average expenditure on goods (food and non-food) and services and helps generate estimates of household Monthly Per Capita Consumer Expenditure (MPCE) as well as the distribution of households and persons over the MPCE classes.
Explain its utility.
Discuss why the latest survey has become controversial.
Conclusion:
Conclude with way forward.
