GS2 – Governance

Context
India is set to conduct its first-ever standalone Household Income Survey in February 2026, addressing long-standing gaps in income data crucial for targeted policy formulation.
About the Household Income Survey
- Implementing Agency:
 The survey will be conducted by the National Sample Survey Office (NSSO) under the Ministry of Statistics and Programme Implementation (MoSPI).
- Distinct from Consumption Expenditure Surveys:
 While the Consumption Expenditure Survey (CES) estimates poverty indirectly through spending patterns, the upcoming income survey will directly capture household income.
- Historical Background:
 Previous attempts in the 1950s, 1960s, and in 1983–84 failed due to methodological weaknesses and unreliable self-reported income data.
- Survey Framework:
 An 8-member expert group, led by Surjit S. Bhalla, is currently designing the framework.
 Plans include cross-verification with tax data to reduce misreporting and improve data integrity.
Objectives of the Survey
- Bridging the Data Gap:
 Provide credible and disaggregated income data for both urban and rural households.
- Policy Feedback Mechanism:
 Assess the effectiveness of government schemes and economic reforms.
- Targeted Welfare Delivery:
 Facilitate evidence-based targeting of social safety nets and direct benefit transfers.
- Inform Tax Policy:
 Help detect underreported incomes and shape progressive and equitable tax reforms.
- Granular Insights:
 Generate detailed, stratified income statistics to assist state- and sector-specific policymaking.
Challenges in Conducting the Survey
- Informality in Income:
 A large portion of Indian income is unrecorded, seasonal, or comes from multiple informal sources.
- Risk of Underreporting:
 Fear of tax scrutiny may lead households to understate actual income levels.
- Rural Complexity:
 Rural households often rely on diverse and seasonal income streams, making accurate reporting difficult.
- Privacy Concerns:
 Balancing the need for transparency with confidentiality protections is a delicate task.
- Seasonal Variation:
 Income levels fluctuate significantly across seasons, especially in agriculture and informal jobs.
- Non-Response Risk:
 Survey fatigue or mistrust may result in low participation, skewing the data.
 
         
         
         
        