A STUDY ON INCOME AND EXPENDITURE PATTERN OF HOUSEHOLDS IN INDIA

BY: TANU PRIYA

ROLL NUMBER: 1059
STREAM: B.B.A.LL.B.(Hons.)
SUBMITTED TO: DR. MANOJ MISHRA

ROUGH DRAFT SUBMITTED IN PARTIAL FULFILLMENT OF PROJECT FOR THE

SUBJECT BUSINESS ENVIRONMENT
APRIL 2015
CHANAKYA NATIONAL LAW UNIVERSITY
NYAYA NAGAR, MITHAPUR,
PATNA, BIHAR 800001

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INTRODUCTION:
With economic and social progression of the nation the minimal basket of basic human needs
which a society would expect for its citizen may be expected to keep expanding. These changes
in the basic needs of the society may be affordable by the level of income. The level of income
of the households ensures the minimum standard of living in the society.
Household income and consumption expenditure are two direct monetary measures used in
assessing the economic well-being of a population. However, consumption expenditure is
preferred to income as it reflects long-term economic status of the household, particularly in low
income countries. It is important to note however that expenditures are not similar with income,
which may even be a better indicator of well-being, for various reasons. Among them is the
possibility of consumption without expenditures at least within the same period. According to
Atkinson, (1998), "Expenditures are thus supposed to better reflect "long-term" or "permanent"
income and are from this point of view considered to be a better measure of economic well-being
and respective inequalities".
Very little is known about the economics of household level activities in pastoral production.
Despite this, interventions are frequently proposed which call for increased cash expenditures.
The implications of this for different groups of households (poor, rich) needs to be assessed. An
intervention may require increased labour input. Will there be enough labour and if so will
sufficient food be available to sustain the energy requirements of increased effort? An
intervention may call for culling of nonproductive and old animals from herds and flocks. What
is the implication of this for the security and viability of different groups of pastoral households
(rich, poor)? What needs of pastoral households can be manipulated to provide incentives for
culling? It is in such a context that information on household income and expenditures is
required.
Besides, in developing countries, income estimates are under-reported, drawn from multiple
sources and vary across seasons. Though the consumption expenditure data are collected in many
developing countries including India, the process is time-consuming, expensive and needs
adjustment for household size, composition and for price level. Owing to these difficulties, the
economic proxies (consumer durables, housing quality and household amenities) are collected to
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measure the economic status of the households in both small-and large-scale population-based
surveys.

AIMS AND OBJECTIVES:

The aims and objectives of the researcher are as follows:
1) To know the levels and patterns of household consumer expenditure.
2) To know the levels and patterns of food and non food expenditures of different societies
in India.
3) To know the expenditure structures and consumption patterns in different Indian
societies.

RESEARCH METHODOLOGY:
The research methodology used in the project is:
-Doctrinal research methodology
-Non doctrinal research methodology

HYPOTHESIS:
The income and expenditure pattern of households in India differ from place to place, religion
and also family structure.

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TENTATIVE CHAPTERIZATION:
1) INTRODUCTION
2) FACTORS AFFECTING THE INCOME AND EXPENDITURE
3) DEMOGRAPHIC CHARACTERISTICS (age, occupation, religion, level of education,
etc.)
4) INCOME AND EXPENDITURE PATTERN
5) SUGGESSIONS AND CRITICISMS
6) CONCLUSION
7) BIBLIOGRAPHY

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