1 week ago
Government Considers Diary-Based Spending Data for Affluent Households
The government regularly asks families how much money they spend on different things.
Some wealthy families in gated communities are refusing to answer these surveys.
The government is thinking about letting them record their spending themselves instead.
They might enter purchases such as food, services and haircuts into an online system.
This could be easier than answering questions from a survey worker.
It could also help families avoid forgetting what they bought.
However, poorer families would still be interviewed in person, so the two kinds of answers might not match perfectly.
Resident associations worry about privacy and security, while the government says the information will be protected.
Officials want to test the idea before the next major survey in 2027.
MoSPI is considering a pilot allowing affluent households in gated societies to report spending through an online diary system.
The proposal aims to address falling participation and rising non-response among high-income households in government surveys.
The next Household Consumption Expenditure Survey is expected to begin in mid-2027 and last about a year.
Diary-based reporting could reduce errors from people having to recall past purchases, but may complicate comparisons with door-to-door data.
Resident Welfare Associations have cited privacy, security, access and sensitive-question concerns, while MoSPI says data will be anonymised.
- Who
- The Ministry of Statistics and Programme Implementation, affluent households in gated societies, Resident Welfare Associations and survey experts including Pronab Sen.
- What
- MoSPI is considering a pilot diary-based system in which high-income households record and submit their own consumption expenditure data.
- Where
- The proposal concerns high-income households living in gated societies across India.
- When
- The proposal is being considered ahead of the Household Consumption Expenditure Survey expected to begin in mid-2027; the latest survey ran from August 2023 to July 2024.
- Why
- The government wants to reduce rising survey non-response, while testing a method that may limit recall errors and address residents’ access and privacy concerns.
MoSPI and Diary-Method Supporters
RWAs and Methodological Critics
Increasing participation
MoSPI and Diary-Method Supporters
MoSPI sees diary-based reporting as a possible way to improve participation among affluent households that increasingly refuse or do not complete surveys.
RWAs and Methodological Critics
RWAs have raised concerns about survey access, security and the sensitive or private nature of some questions.
Privacy and survey access
MoSPI and Diary-Method Supporters
MoSPI says data privacy is a priority and that information collected in surveys is anonymised; it also follows procedures to obtain access to gated societies.
RWAs and Methodological Critics
RWAs fear that private details could be shared with other government departments and say residents may be uncomfortable answering questions about spending on alcohol or cigarettes.
Comparability of results
MoSPI and Diary-Method Supporters
The diary method may reduce recall errors because households record purchases when they occur, and officials are considering a pilot before wider use.
RWAs and Methodological Critics
Pronab Sen warned that diary-based and door-to-door data may have different levels of recall error, making the two sets difficult to integrate and compare.
Key facts
- Next HCES
- Expected to begin in mid-2027 and continue for about a year.
- Latest HCES
- Surveyed 2.6 lakh households from August 2023 to July 2024.
- Survey coverage
- Collected responses on 405 goods and services.
- Urban non-response
- The overall urban non-response rate rose to 9.8% in 2022-23 from 2.8% in the 2017-18 National Sample Survey.
- Affluent urban non-response
- The non-response rate among the most affluent urban respondents was 11% in 2022-23.
- Potential data system
- Households may enter expenditure details on an online portal rather than use a physical diary.
- Policy relevance
- HCES expenditure shares help update the Consumer Price Index basket, which is used in monitoring retail inflation.
Quotes
MoSPI official
An official aware of MoSPI deliberations on survey methods
“This is at a planning stage, but the thought is to use the diary method only for richer households who live in gated societies on a pilot basis before the 2027-28 consumption expenditure survey begins.”
indianexpress.com
“you can’t wish away the recall error”
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