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

Data file: NSS64_Sch1_bk_11

Block 11 - Expenditure for purchase and construction (including repair and maintenance) of durable goods for domestic use during the last 365 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.


Information on expenditure incurred for purchase and cost of raw materials and services for construction and repairs of durable goods for domestic use will be collected in this block for the last 365 days. Expenditure will include both cash and kind. Purchase will include both first-hand and second-hand purchase and will be recorded in separate columns of this block. A purchase will qualify for consideration in this block only if some expenditure - whether in cash or kind or both - is incurred towards the purchase during the reference period. Expenditure incurred on purchase of durable goods for gifts or transfer is to be included in the giver household and not against the recipient household. In case of credit purchase or hire-purchase of any item of this block, the actual expenditure made during the reference period will be recorded. Expenditure on each item in this block will also be recorded in whole number of rupees. The following points may be noted:
1. The time at which the item purchased comes into the possession of the household is not relevant. If the sample household incurred some expenditure on purchase of an asset during the reference period, then the expenditure incurred will be accounted in this block even if the household has not yet received it till the date of survey. Likewise, suppose a sample household acquired an asset (durable goods) during the reference period and it is in possession of the household but no payment has been made during the reference period. Such purchases are to be excluded.
2. Purchases made by the household during the reference period using a credit card will be included.
3. Suppose an asset purchased during the reference period for domestic use, had been sold out during the reference period. Such a purchase will also be accounted.