A more compelling argument in favor of food security bill, all in numbers:
High food inflation led to higher than proportionate increase in food expenditure (assuming constant consumption), leaving lesser income for other expenditure
Total expenditure increased by ~11%, food expenditure increased by 16% and other expenditure only by 8%:
Total expenditure increased by ~11%, food expenditure increased by 16% and other expenditure only by 8%:
The table shows lower increase in non-essential expenditure in FY10 due to high food prices:
* Food expenditure growth assumption: constant quantity; expenditure increased by increase in prices (Food articles inflation = 14.6%) and population increase = 1.4%
In FY10 consumption of all commodities other than food may not have necessarily fallen given fall in prices and excise cut. However, going forward, a large rise in food prices would entail a larger than proportionate increase in food expenditure rendering the poor poorer.
No comments:
Post a Comment