Household spending on health, education

By Staff
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Google Oneindia News

New Delhi, Dec 3 (UNI) Owing to a rise in the income levels, Indian households are spending a significant portion of their income towards health, education and communication services.

According to a survey, the percentage expenditure on health care, education, transport and communications of the total income shot up to 12 per cent, 15 per cent and 25 per cent respectively on March 31, 2006. During 1999-2000, the figures were four per cent, 5.5 per cent and 12.97 per cent respectively.

''The rising income levels coupled with increased awakening have led to more spending by households on healthcare, education, transport and communication. This reflects the improvement in the living standard particularly the middle class,'' said Assocham President Anil K Agarwal.

While public spending on health and education have not been going up to the desired levels, emergence of the private sector in these critical areas have improved the supplies of health services during the period, according to the study, on 'Emerging Patterns of Private Final Consumption Expenditure' conducted by Assocham.

The study found that the expenditure on food, clothing and intoxicants has come down to 40 per cent, five per cent and 0.48 per cent in 2005-06 from 52 per cent, 10 per cent and one per cent respectively in 1999-2000.

Sustained social campaigns against tobacoo and other intoxicant might have had impact on the tobacoo chewing and intoxicants consuming habits of the common man. However, the drop in the expenditure on these products may have relationship with increase income rather than change of habits, the study said.

The reason for increase in telecommunications expenses has been cited as the easy availability of services by private players including cellular phones in urban and rural areas.

The study also said that shooting of oil prices and improved mobility has led to more spending on commuting.

With improved living standard and easy availability of electrical gazettes, the power consumption per household has significantly gone up. Increased power and fuel consumption is also a sign of growing income, Mr Agarwal said.

The share of fuel and power in overall consumption increased from 3.64 per cent in 1999-00 to about 8.05 per cent in 2005-06.

Households are spending more on fuel and power at homes. The cost of electricity has gone up alongwith greater consumption of electrical goods, the study said.

UNI KR/CS PKS BD1455

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