A National Statistical Office (NSO) report released on 28 September 2023 shows that 22 crore Indian households—about 19 % of rural and 8.4 % of urban residents—advanced into higher monthly per capita consumption expenditure (MPCE) brackets after the government’s in‑kind transfers.
The study, which analysed Household Consumption Expenditure Survey 2022‑23 unit‑level data, found that 15.8 % of the national population climbed to a higher MPCE category once the monetary value of free goods was accounted for. The Gini coefficient fell from 0.375 to 0.368, signalling a modest shrinkage in consumption inequality.
Regional impact varied sharply. West Bengal led with 46.5 % of its rural and 24.9 % of its urban population moving up, followed by Chhattisgarh (29.2 %) and Assam (29 %) and Karnataka (28.4 %). In contrast, Gujarat saw only 3.7 % of its residents rise, while Kerala and Haryana recorded 4.6 % and 7.1 % respectively.
The analysis deliberately omitted out‑of‑pocket savings from services such as Ayushman Bharat and free school education, according to the researchers, since these were outside the scope of the survey’s design. Incorporating those savings, they argue, would further widen the lift in living standards.
Minister of Rural Development, Anil Kumar, said the data confirmed that in‑kind transfers target the lowest income brackets, reducing the risk of rent‑gathering by politicians. “We are reviewing the allocation to ensure sustained upliftment rather than electoral gains,” he added.
The government will use the findings in the forthcoming Union Budget, which is scheduled for presentation on 1 November 2023, to recalibrate welfare disbursements and address regional disparities.