National Sample Survey 2007-2008 (64th round) - Schedule 1.0 - Consumer Expenditure

Data file: NSS64_Sch1_bk_9_10

Blocks 9 and 10: Blocks on Consumer Expenditure: Information on consumer expenditure on various items/groups of items will be collected in these blocks.

Block 9 : Expenditure on education and medical (institutional) goods and services during the last 365 day
Block 10 : Expenditure on miscellaneous goods and services including medical (non-institutional), rents and taxes during the last 30 days

Blocks 9, 10 (and 11) relate to education and medical care, miscellaneous goods and services, and durable goods. All three blocks are governed by the expenditure approach. The expenditure approach says that consumption of these items takes place when expenditure is incurred on the item (good or service). The household incurring the expenditure is the consuming household, regardless of whether the item is used by the household or not.

When a household H obtains an item as gift or charity, or by free collection, no expenditure is incurred by the household H on the item.

When a household W obtains an item as perquisite from the employer, or as payment in kind from a household or enterprise for services rendered by W, then W is considered to incur an expenditure on the item received as perquisite or payment in kind. The value of the item at local retail prices is considered to be the amount of expenditure incurred by W. Examples are accommodation, newspapers and telephone services provided free to employees by employers, and any expenses on domestic account, such as medical expenses, that are reimbursed by employers. Leave Travel Concession (LTC) is another example of perquisites.

Credit purchase: In case of credit purchase of any item of Blocks 9, 10 or 11, the actual expenditure made during the reference period will be recorded. If any payment is made during the reference period for any credit purchase made earlier, then that amount will also be included. If the household makes a lumpsum payment against the credit purchase of several items, apportionment will be made for each of the items in proportion to their value.

When a household H acquires an item through cash purchase, the time of incurring expenditure is clear. In case of payment by cheque or through a credit card, the household is considered to incur expenditure at the moment when the cheque is handed over (or sent by post) or the credit card is presented to the seller as means of payment. If the seller agrees to accept payment in instalments, it is called hire purchase. In case of hire purchase, only the payment made to the seller during the reference period is regarded as the expenditure incurred. Note that in case of purchase (e.g. of a car) fully financed by a loan from some person or enterprise other than the seller, where full payment is made to the seller, the entire sale value of the commodity (the principal borrowed to make the payment to the seller) is considered to be the expenditure incurred by the household. This expenditure (payment to the seller) takes place before the durable comes into the buyer?s possession, not after. On the other hand, the repayment of the loan in instalments to the financier goes on for several months or years. The repayment of the loan to the financier is not relevant in recording consumer expenditure.

BLOCK 9:

In this block, information will be collected on educational and institutional medical expenses incurred during the last 365 days preceding the date of survey. The institutional category will include payments made for goods and services availed of as an inpatient in both private as well as Government medical institutions like nursing homes, hospitals, etc. All other medical expenses will be treated under non-institutional category and will be recorded separately in Block 10. The amount of medical insurance premium paid by the household during the last 365 days is to be recorded under item 410. This item has been placed in Block 9 to avoid errors in use of reference period, although such expenditure is not incurred as in-patient of a medical institution. The amount of premium will not, however, be used to compute household consumer expenditure.

BLOCK 10:

In this block, information will be collected on the expenditure for purchase of miscellaneous goods and services during the last 30 days prior to the date of survey. If some goods are purchased for gift or transfer, it is to be accounted against the payer household and not against the recipient household.