Consumption Increased and Poverty Reduced Among the Lowest 10% Population

Government-targeted welfare measures have led to a significant reduction in poverty and improvement in income distribution. The Economic Survey presented in Parliament on January 29 highlights that the lowest 5-10% of the population experienced the fastest increase in consumption expenditure.

The survey mentions the positive impacts of subsidies, pensions, direct benefit transfers, and public spending on education and health services. These measures have helped vulnerable groups rise above deprivation. The findings are based on the latest Household Consumption Expenditure Survey (HCES) 2023-24, showing reduced consumption inequality and significant benefits for the most deprived groups.

Between 2022-23 and 2023-24, the largest increase in per capita monthly consumption expenditure (MPCE) was observed among the lowest 5-10% of the population in both rural and urban areas. This reflects the positive impact of government policies. According to the survey, “Government measures have effectively lifted vulnerable groups out of the poverty trap, as reflected in various poverty reduction initiatives.”

Impact on Income Distribution and Rural Development

The survey states that government policies had a significant effect on income distribution. Public spending on subsidies, pensions, direct transfers, and social services such as education and healthcare contributed to positive changes in income distribution.

To promote inclusive rural development, the survey emphasizes enhancing rural economic momentum while preserving environment, culture, and traditions. Special attention is given to the most vulnerable groups, particularly in rural areas, highlighting that livelihood support and improving living standards without obstacles require revitalizing the rural economy.

The survey further suggests that rural communities can acquire new skills, secure livelihoods, maintain health and economic stability, restore household harmony, access modern education, and preserve cultural heritage and environmental sustainability. Community participation and continuous technology-based surveys are encouraged for data-driven, targeted interventions to sustain social development.