With reference to the Household Consumption Expenditure Survey (HCES) 2023-24, consider the following statements:
1. The survey showed a decline in the share of food expenditure for both rural and urban households.
2. The urban-rural expenditure gap narrowed compared to the previous year.
3. The Gini coefficient indicated reduced consumption inequality across both rural and urban households.
Which of the above statements is/are correct?
Explanation: Statement 1 is incorrect. The HCES 2023-24 showed an increase, not a decline, in the share of food expenditure for both rural (from 46.38% to 47.04%) and urban (from 39.17% to 39.68%) households.
Statement 2 is correct. The urban-rural expenditure gap narrowed from 71.2% in 2022-23 to 69.7% in 2023-24.
Statement 3 is correct. The Gini coefficient, a measure of inequality, declined for both rural (from 0.266 to 0.237) and urban (from 0.314 to 0.284) areas, indicating reduced consumption inequality.
Explanation: Statement 1 is incorrect. The HCES 2023-24 showed an increase, not a decline, in the share of food expenditure for both rural (from 46.38% to 47.04%) and urban (from 39.17% to 39.68%) households.
Statement 2 is correct. The urban-rural expenditure gap narrowed from 71.2% in 2022-23 to 69.7% in 2023-24.
Statement 3 is correct. The Gini coefficient, a measure of inequality, declined for both rural (from 0.266 to 0.237) and urban (from 0.314 to 0.284) areas, indicating reduced consumption inequality.