Levels of Consumption Expenditure in Rural Non-Farm Households in Punjab

Abstract

The study depicts that an average rural non-farm household spends Rs. 16,138.61 per year on consumption. The Bathinda district has the highest expenditure, followed by the Jalandhar and Gurdaspur districts. Rural non-farm households typically consume in a subsistence-oriented manner. Food goods account for a significant portion of these categories’ overall consumer spending. Rural non-farm households in the Bathinda district spend 1.20 times as much on consumption per person as non-farm households in the Gurdaspur district, and per-household consumption expenditure in the Bathinda district is 1.05 times the per-household consumption expenditure of non-farm households in Gurdaspur district. In comparison to the other two districts, the Gurdaspur district has a higher concentration of consumer expenditures. The average propensity to spend for non-farm families is less than one, however, for the lower four-income decile groups the non-farm households’ average consumption expenditure is larger than their average income.