‘Targeted subsidies cut poverty sharply’

New Delhi: The government’s targeted welfare measures have significantly reduced pov-erty and improved income distribution, with the bottom 5-10 per cent of the population registering the sharpest rise in consumption expenditure, the Eco-nomic Survey said on Thursday. The survey highlighted positive outcomes from subsidies, pensions, direct benefit transfers and public spending on edu-cation and healthcare, which have lifted the vulnerable out of deprivation. This is reflected in the latest Household Consumption Expenditure Survey (HCES) 2023-24, which shows a decline in consumption inequality and marked gains for the most disadvantaged groups. The largest growth in average monthly per capita expenditure (MPCE) between 2022-23 and 2023-24 was observed among the bottom 5-10 per cent in both rural and urban areas, highlighting the impact of government policies. Government policies have had a significant in-fluence on income distribution, primarily through subsidies, pensions, direct transfers, and public expenditures on social services, including education and healthcare, it added. The Survey also called for amplifying rural economic momentum through local opportunities and innovation, while preserving the environment, culture and traditions to foster inclusive growth across rural India.