Communication services highest share of expenditure in rural and urban areas

Q.  As per the report of NSSO, which of the following services constitute the highest share of expenditure in rural and urban households?
- Published on 01 Jul 16

a. Barber and beauty shops
b. Communication services
c. Transport
d. Recreational and cultural services

ANSWER: Communication services
 
  • As per the National Sample Survey Organisation (NSSO) study in cities as well as villages, about 90 per cent or more households reported expenditure on barber & beauty shops and communication services.
  • In rural areas, communication services accounted for the highest share of expenditure (25.33 per cent) followed by barber & beauty shops (11.07 per cent), TV & radio services (10.58 per cent), repair & maintenance (10.27 per cent) and tailoring services (10.18 per cent).
  • The report stated that in urban areas, communication services accounted for the highest share of budget (26.33 per cent) followed by domestic services (12.11 per cent), TV & radio services (10.22 per cent) and recreational & cultural services (9.95 per cent).
  • In terms of monthly per capita expenditure, the highest budget was incurred on communication services in both rural and urban areas.

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