Final Consumption Expenditure
In the national accounts, final consumption expenditure is the expenditure on goods and services that are used for the direct satisfaction of individual needs (individual consumption) or collective needs of members of the community (collective consumption).
It consists of two aspects:
- Household final consumption expenditure: It represents consumer spending and consists of the expenditure incurred by resident households on goods and services for individual consumption (eg. health, education, cars, etc)
- Government final consumption expenditure: It consists of the value of the goods and services produced by the government itself and the expenditure of the government in providing goods and services for the direct needs of the population - as social transfers in kind (eg. subsidies). A high government share in the provision of individual consumption goods and services is often found in countries known as welfare states.
In the national accounts, final consumption expenditure is the expenditure on goods and services that are used for the direct satisfaction of individual needs (individual consumption) or collective needs of members of the community (collective consumption).
It consists of two aspects:
- Household final consumption expenditure: It represents consumer spending and consists of the expenditure incurred by resident households on goods and services for individual consumption (eg. health, education, cars, etc)
- Government final consumption expenditure: It consists of the value of the goods and services produced by the government itself and the expenditure of the government in providing goods and services for the direct needs of the population - as social transfers in kind (eg. subsidies). A high government share in the provision of individual consumption goods and services is often found in countries known as welfare states.
SUBJECT Variables
TOTAL CONSUMPTION EXPENDITURE
- Government final consumption expenditure: It consists of the value of the goods and services produced by the government itself and the expenditure of the government in providing goods and services for the direct needs of the population - as social transfers in kind (eg. subsidies). A high government share in the provision of individual consumption goods and services is often found in countries known as welfare states.
- Private (Household) final consumption expenditure: It represents consumer spending and consists of the expenditure incurred by resident households on goods and services for individual consumption (eg. health, education, cars, etc).
- The total consumption expenditure in 2022-23 is estimated at ₹19,313,938 crore, an increase of 14% over the previous year.
- 14.6% (₹2,819,205 crore) of the total consumption expenditure in 2022-23 was by the government while 85.4% (₹16,494,733 crore) was by private households.
% OF GDP
- The total consumption expenditure in 2022-23 as a ratio to GDP dropped to 70.9%. This shows that the pace of expenditure is not in line with the growth of the economy.
- The government expenditure in 2022-23 is estimated at 10.3% of India's GDP, declining from a high of 11.6% in 2021-22.
- The private/household expenditure in 2022-23 is estimated at 60.6% of India's GDP. Private/household expenditure is expected to decline for the second consecutive year in a row.
% OF TOTAL EXPENDITURE
- 14.6% of the total expenditure in 2022-23 was government expenditure while 85.4% was private/household expenditure.
- In comparison to 2013-14, the share of government expenditure in the total expenditure decreased by 0.6% in 2022-23 while that of private/households has reduced by 0.6%.
TO READ THE FULL ARTICLE
Get full access to the exciting content on The Mirrority by logging in
Support independent journalism
Even the very best of media houses in our country today are yielding to the pressure of click-bait journalism in order to survive. More than ever before, our country needs journalism that is independent, fair and non-pliant to the bureaucracy. Such journalism needs the support of like-minded readers like you to help us survive editorially and financially.
Whether you live in India or India lives inside you, help us continue to produce quality journalism with your contribution.
CONTRIBUTE