Declining Household Income Questioned In Parliament; Nominal Household Incomes Increased, Says Govt

The Ministry of Finance has responded to concerns raised in the Lok Sabha regarding the declining household income. The questions, put forth by MP Dhanorkar Pratibha Suresh, directed at the plunging household income were answered by Pankaj Chaudhary, Minister of State in the Ministry of Finance. She inquired whether the slow growth of wages and the skyrocketing inflation may be the reason behind the real household income falling to an unprecedented low, and if so, then what steps are being taken by the government and how is the government addressing the challenge faced by the country's economy.

While answering the questions, Pankaj Chaudhary referred to the recent data published by the Ministry of Statistics and programme Implementation (MoSPI) in the report titled National Accounts Statistics 2024. He stated that according to the report, the gross disposable income of the households, which includes the non-profit institutions serving households as well, is available only at current prices and till the year 2022-23. The growth rate in gross disposable income at current prices averaged 13.5 per cent during 2021-22 and 2022-23, which was higher than the average retail inflation of 6.1 per cent, suggesting that nominal household incomes have actually increased, even as they have been eaten into inflation.

Besides, the data presented by the Periodic Labour Force Survey (PLFS) showcased that workforce participation has increased from 56 per cent, recorded in 2022-23, to 58.2 per cent in 2023-24. The PFLS data also highlighted that the growth in average wage or salary earnings at the current weekly status has exceeded the retail inflation rate in 2023-24. The data recorded during the April-October quarter in 2024-25 highlighted the decline in the retail inflation rate to 4.8 per cent, compared to 5.4 per cent in 2023-24.

On the other hand, the government is focusing on the ease of doing business, skilling up the population, higher rate of employment generation and, along with these, the creation of a stronger infrastructure, which, in turn, will create a more congenial environment for growth and the increase in household income.