ECONOMIC TRENDS

SECTION I-STANDARD OF LIFE

General.

The preceding chapters have described the principal aspects of economy of the district. It would enable the reader to have a broad idea of productive resources and the employment they offer to the people. The average income of a family in a particular region depends upon the available resources and their exploitation. Standard of life of people of a particular region is mostly determined by the level of their income and the material benefits they derive from it and the pattern of expenditure which largely depends upon habits of consumption and socio-economic advancement. In this chapter, an attempt is made to give a broad outline of the patterns of income and expenditure of socially significant sections of the population in both rural and urban areas in the Kolaba district. The account is based on a sample survey conducted in a few villages and towns. It may be pointed out that actual observations corroborate the correctness of the broad outlines of the standard of the people, but complete statistical accuracy is not claimed.

The conclusions of the survey do not indicate whether the different classes of families whose budgets were studied were better off or worse off than what they were in the past. They simply indicate the income and expenditure patterns of these families. However, as representative areas in the district were selected for the purpose of the survey, the conclusions can be said to be representative of the families in the respective income groups in regard to their income and expenditure patterns for the whole of the district.

The methodology adopted for the survey was as follows. Certain areas of the district typically representative of urban and rural characteristics were first earmarked for the survey. From these areas a group of villages and towns were selected where the survey was conducted. Efforts were made to collect data pertaining to as many families as possible. The families were then classified into income groups both for the rural and urban areas representing incomes up to Rs. 1,200 between Rs. 1,200 and Rs. 3,000 and Rs. 3,000 and above, and were named as low, middle and higher income groups, respectively. The details in respect of each family such as number of members, age, relationship with the head, educational qualifications, civil condition and main or subsidiary occupations of the head of the family were taken note of. For the purpose of computation the number of members in the family was converted into full units, each adult or two minors representing one full unit.

The income side of the family budget was evaluated thus; If the person has a landed property, its area, value and volume of debts, if any, were noted. If the property was composed of buildings, the number and value of houses, and volume of debts, if any, were taken into consideration. In respect of both landed and building properties, their annual yield was estimated on the basis of figures supplied by the persons concerned. The quantity and value of cattle was also considered. However, in the case of urban areas, the main item of income was the earning of the family members from principal or subsidiary occupation. Here not only the salaries but income in the form of rent, interest on deposits, etc., was grouped together for the analysis of the income side. The statistics regarding deductions from provident fund, insurance premiums, deposits in banks or post offices, national savings certificates and shares and deductions from the income in the form of debt, its purpose, amount repaid, rate of interest, etc., were also collected at the time of survey.

On the expenditure side the items of expenditure were grouped into two categories, viz., annual and monthly. The former included such items as clothing, ornaments, ceremonies, charity, medical, travels, etc., and the latter such as grocery, rent, electricity, domestic, lighting, entertainment, education, etc. Besides these, items of monthly and annual expenditure in the form of investment in numerous family possessions was also noted.

The data thus collected provided a basis on which family budgets of different income groups were analysed. Inter group comparisons arc also made. In the end a few impressions are also given about educational standards, housing conditions, etc.,in the district as a whole based on the material collected from other sources.

The following is the list of villages and towns surveyed:−

Villages:

Kamabarli, Khalapur, Neral, Poladpur, Pali, Parali, Poynad Shahabad, Thal.

Towns:

Alibag, Chaul, Revdanda, Mahad, Panvel, Pen, Roha, Uran.

Urban Areas.

URBAN AREAS: About 96,000 persons in the district live in urban area which is composed of 12 towns. Of these, three town have a population of more than 10,000, four between 8,000 and 9,000, three between 5,000 and 7,000, and two between 2,000 and 3,000. Ten towns have municipalities. A town as enlisted in the Census is a municipal area, cantonment area or a place which has a population of 5,000 or more and which exhibits urban characteristics. Matheran with only 2,808 inhabitants has also been classified as a town. But size of population which seems to be the determinant for assessing the characteristic of a place does not appear to be the sole criterion for distinguishing the urban area from the rural one. In all probability, the census ignores basic economic considerations, which lay down that a village is associated with a predominantly agricultural population and the town with a non-agricultural population. In the light of these considerations not all the towns listed in the census with the exception of Pen, Panvel, Mahad and Alibag can be said to possess urban characteristics.

In fact there is nothing to distinguish prima facie the urban standard of life from the rural standard of life. Yet, there are certain problems so akin to the urban way of life. One such problem is the phenomenon of rising prices which was typical in the post-war period of various articles of daily consumption. They have affected both rural and urban sectors in different degrees.

Broadly speaking, the cost of living in a town is somewhat higher than that in a village, though the development of quick transport has tended to remove the difference in prices of number of articles in towns and villages. Milk, milk products and vegetables which are generally produced in villages are sold with a small difference in price in the nearby towns. But when the distance between the village in which they are produced and the town in which they are sold increases, the difference in price becomes more apparent. Housing is another similar problem. The rate of construction of houses in urban areas has not kept pace with the increase in population. The problem of accommodation in. urban areas has been aggravated by continuous inflow of landless labour and lower middle class from rural areas. As a result, rents have increased considerably and overcrowding is seen everywhere in towns whereas this problem is not so acute in rural areas. This difference in rent affects the standard of the town population. The decentralisation of trade and industries and development of cottage and small scale industries and transport and communications are the factors which may help to improve the present state of overcrowding in towns.

The urban densities when compared to the general density of the district throw some light on the extent of overcrowding. The census of 1951 reveals that the general density of the district was 335 persons per square mile and the rural and urban densities were 304 and 2,281 persons per square mile, respectively. It shows the acuteness of the problem of overcrowding in urban areas. In dealing with the standard of urban population it will be more appropriate to concentrate on persons engaged in non-agricultural pursuits. It is this section of the population which influences the urban standard of life. The agricultural population in urban areas is returned as 19,524 which forms a small part of the total agricultural population in the district returned as 6,72,839 in 1951. The non-agricultural population of the district is returned as 2,36,244 of which 76,504 are in urban areas. The non-agricultural pursuits as classified in the census cover production other than cultivation, commerce, transport, and other services and miscellaneous. Of these, the sub-class, production other than cultivation, reveals an economy resembling more of rural than urban. Other services and miscellaneous is a widely accommodating sub-class embracing health, education, public administration, etc. Thus the non-agricultural class cannot in itself be expected to speak adequately for the urban economy. The following table gives the non agricultural population in urban areas (1951).

LIVELIHOOD CLASSES-KOLABA DISTRICT.

(Nonagricultural Classes).

Persons (including dependants) who derive their principal means of livelihood from-

*Towns arranged territorially with population by livelihood classes.

The towns in the district can broadly be divided into two categories-major and minor. Pen, Panvel, Mahad, and Alibag represent major towns while the rest are minor towns.

Low-Income Group.

LOW-INCOME GROUP: This class comprising families with an income of up to Rs. 1,200 represents the lowest rung in the occupational ladder. It is economically the most depressed class. It is composed of semi-skilled and unskilled workers, shop assistants gumastas in small commercial establishments, peons and petty artisans. The peculiarity of this class lies in its entire dependence upon manual labour for its maintenance. It has to struggle hard to obtain the basic necessities of life.

Thirty-seven families were surveyed in the sample which revealed that a family in this group consisted of four adults and three minors. It had two earning adult members who were required to support two adults and three minors. Each family consisted of four adult males, one or two adult females and three or four minors.

The main source of income of most of these families was service, while a few of them were mainly employed as farm labourers which was their main source of livelihood. About ten families bad a subsidiary income from agricultural land, but it did not exceed Rs. 100 per annum per family. No other family had any other source of income nor possessed any milch or draught cattle. The survey revealed that the annual income per family in this group averaged Rs. 1,064. About 60 per cent of the families bad an annual income between Rs. 800 and Rs. 1,000 and 40 per cent between Rs. 1,000 and Rs. 1,200. No true picture of the income-pattern of this group can he presented without reference to nature of employment which has a great bearing on its income. The earning members of this group were not assured of continuous employment nor of stability and were engaged in unregulated pursuits, and so equipoise between income and expenditure was hardly possible. Furthermore, some of the members of this group were unskilled workers who were engaged in hard manual labour and were not qualified for more remunerative pursuits. The destitution of this group is well-known throughout the country. About ten families in the sample possessed landed property including land and houses. Five families owned about an acre or two of agricultural land each and the remaining five had their own dwellings which were mostly huts built of earth and plastered with cowdung. These dwellings were vulnerable to heavy rains. They were ill-ventilated and ill-equipped. In few cases, they were paid in kind and not in cash. A few female members of these families were employed in gainful employment. So the expenditure on food which claimed the largest share of their income did not reveal the correct picture. Similarly, the expenditure on clothing did not give a correct idea as some members of these families remained half-naked or were provided with clothes by employers whom they served.

More than half of the families in the sample outran their budgets. They kept immediate bills pending and paid those that were overdue. The amount of debt per indebted family came to about Rs. 480. The maximum debt per family was estimated at Rs. 2,000 and the minimum at Rs. 200. The source of credit was relatives, friends and indigenous money-lenders.

The average annual expenditure on all items per family came to about Rs. 1,300. Of all the items of expenditure, food took the largest share. The following table shows the average monthly expenditure of a family in this group:−

These families spent 75 per cent of their total expenditure on food. Their diet usually composed of cereals and pulses of inferior quality; green vegetables, milk and milk products were rarely found in it. The items of clothing claimed about 5.6 per cent of the total budget and fuel and housing about 6.5 per cent. Miscellaneous expenses as on social and religious occasions, medicines, entertainment and beverages, pan, bidi, tobacco, etc. claimed about 6.4 per cent of the total budget.

It appears that this group spent more on social functions like marriage, birth and death. Age-old traditions, customs and false notions of prestige often drove them to spend more on such occasions.

The household equipment consisted of a few utensils and a few clothes. In rare cases, their possessions included bicycles, wrist watches, etc. It also appears that about 10 per cent of the families possessed some petty trinkets whose money value did not exceed Rs. 200.

Middle-Income Group.

MIDDLE-INCOME GROUP: This group is composed of families having incomes between Rs. 1,200 and Rs. 3,000. It represents the lower and middle strata of salaried persons employed in Government or private offices and professionals such as doctors, lawyers and petty merchants, skilled and semiskilled workers and artisans such as handloom weavers, brass and copper-smiths, carpenters sawyers, workers in the leather industry, etc. Eight families were surveyed in the sample. The survey revealed that a family in this group was composed of five members with one earning member who had to support three adults and two minors.

Most of these families derived their income from the employment or profession they followed. About ten families had subsidiary income from agricultural land. This income generally did not exceed Rs. 250 per annum per family. Ten families had their owned houses which they used for residence. They did not possess either milch or draught cattle. The following figures indicate the distribution of families surveyed on the basis of their annual income:−

It can he seen from the table that about 40 per cent of the families enjoyed an annual income from Rs. 1,200 to Rs. 1,800, 20 per cent from Rs. 1,801 to Rs. 2,000 and about 40 per cent from Rs. 2,001 to Rs. 3,000. The average annual income of the families in this group from all sources amounted to Rs. 2,000. It fell to a very low level when the season was slack but more than doubled itself when it was brisk. The per capita income of this family works out to even more than the per capita income of a family in, the lower income group. It is nearly three times the average income of a family in the lower income group. The following tabulation shows the per capita income of the families calculated on the basis of two minors equivalent to one adult:−

The average annual expenditure per family worked out at Rs. 1,994. The following table shows the expenditure pattern of these families:−

The above table shows that the family in this group spent more on articles of food which works out at about 55 per cent of its total monthly expenditure; clothing took about 10 per cent; education 11.5 per cent; lighting, fuel, etc., about 6 per cent; housing 7 per cent; and miscellaneous about 10 per cent. If measured in terms of money, the family in this group spent Rs. 92 per month on articles of food which works out to Rs. 23 per head. In the case of families in the lower income group this expenditure was about Rs. 82 per family, which worked out at Rs. 15 per head. It indicates that the families in this group enjoyed a better standard of food than the families in the lower income group. There was a change in the composition or contents of dieting of these families which could afford to have some milk, ghee and vegetables in diet.

The following table gives a comparative analysis of the expenditure pattern of the families classified in the two groups described so far:−

The table above shows that there is a noticeable change in the expenditure on all other items including housing, clothing, education and miscellaneous.

The survey revealed that 35 per cent of the families in this group had incurred debts which worked out at Rs. 1,150 per family, the maximum and minimum being Rs. 5,000 and Rs. 500, respectively. Relatives, friends, merchants and co-operative societies were the main sources of credit. The rate of interest charged by them varied from nothing to 12½ per cent., Usually relatives and friends made a common source of credit because there was an easy access to them and the terms and conditions of repayment were easy. Merchants were the next convenient source but due to their higher rate of interest, recourse was made to them on few occasions. The amount of debt per indebted family worked out at Rs. 1,150. The corresponding figure in the lower income group was Rs. 480. Thus the debt per head in the families in the two groups stood at Rs. 287 and Rs. 80, respectively.

One-fifth of the families lived in rented houses and the remaining in owned premises. The family in this group stayed in tenements consisting of two or three rooms, annual rent whereof averaged Rs. 150. In many cases these houses were ill-equipped and lacked amenities. Most of the houses were built in stone and mortar.

The survey disclosed that twenty families possessed landed property including agricultural land and houses which were mostly acquired as ancestral property. It is very rarely that a family in this group can afford to construct a house. About 50 per cent of the families possessed ornaments of conventional type which were acquired in many cases as ancestral property. On an average the value of the ornaments possessed by a family in this group approximated Rs. 800. The household equipment of the family consisted of a few cooking and other utensils, clothes, bedding, blankets, etc. Some families owned furniture such as chairs, tables and stools. Some families were also found to possess bicycles and radio sets.

Higher-Income Group.

HIGHER-INCOME GROUP: This group is composed of families, with annual income of over Rs. 3,000. Government officials, College teachers and heads of secondary schools, legal and medical practitioners of long standing, merchants, proprietors of hotels and shops, commission agents, etc., constitute this class. This group also includes technical personnel in different occupational categories. The problems and characteristics typical of the class present a wide contrast in comparison to the other income groups considered so far. The following table indicates the percentage distribution of families surveyed on the basis of their annual income:−

The size of a family in this group was the same as the size of a family in the middle income group. It was composed of five members with one earning member who was the head of the family.

Most of these families derived their income from the profession or employment of the head of the family. It can be seen from the above table that about 60 per cent of the families surveyed enjoyed an income between Rs. 3,001 and Rs. 3,600; about 20 per cent between Rs. 3,601 and Rs. 4,800, about 14 per cent between Rs. 4,801 and Rs. 6,000 and about 6 per cent between Rs. 6,000 and Rs. 12,000.

The average annual income of the families surveyed in this group from all sources amounted to Rs. 4,000. There were seven families with subsidiary income. Of these, four families derived it from land. This income did not exceed Rs. 800 per annum. The other three earned it by way of rent from houses. This was about Rs. 300 per annum per family. The comparison of income of this group with the middle income group indicates that the average income of the family in this group was a little less than three times the average income of a family in the middle income group. The income per head in this group, as revealed by the survey, worked out at Rs. 1,075 which was more than double the income per head in the families in the middle income group. The following table shows the income per head of the families in both the groups:−

The average annual expenditure per family worked out at Rs. 2,520. About half of its budget was spent on food. The following tabulation shows the expenditure pattern of the family in this group:−

It was observed that the family on an average spent Rs. 95 per month on articles of food which works out at Rs. 24 per head, two minors being treated as equal to one adult. In case of families in the middle income group. It was composed of five articles averaged Rs. 23 per head, which indicates the close resemblance between the standard of food obtaining in the families of these two groups. But as compared to the food consumed by the families in the lower income group the standard of food obtaining in these families was definitely higher. The expenditure on education of a family in this group was 16.2 per cent of its total budget while it covered only 11.5 per cent of the budget of a family in the second income group. Similarly, the family in this group spent 9.5 per cent of its total budget on clothing and in the other case it covered 10 per cent of its budget only.

The following table gives a comparative analysis of the expenditure pattern of the middle and higher income group families:−

The above table reveals that there is a noticeable change in the expenditure pattern of the family in this group.

Our survey reveals that the family in this group had a spacious house with a domestic servant. The expenditure on fuel and housing per head was Rs. 2.2 in the middle income group and Rs. 5 per head in this group. The expenditure on clothing in both the cases was more or less the same. Education was perhaps the only item on which they spent Rs. 8.5 per head. It was Rs. 4.7 more per head in this group than in the expenditure per head in the former group.

The survey revealed that no family in this group had incurred any debt. Their total savings in form of cash, shares, bank deposits, debentures, etc., amounted to Rs. 97,000 which worked out at about Rs. 2,620 per family. About 45 per cent of the families saved to the extent of Rs. 2,000 each, about 20 per cent saved between Rs. 2,000 and Rs. 5,000 each and about 15 per cent over Rs. 10,000 each and the remaining had no savings at all.

Most of the houses of these families were built in brick or in stone and, in a few cases, they had concrete constructions. Of the families in this group, 40 per cent lived in owned houses and the remaining in rented houses. The average tenement consisted of four or five rooms fitted with modern amenities such as electricity, tap water system, etc., wherever available. The houses of families having larger income in Pen, Panvel and Maad were quite spacious and comfortable. They were situated in incongested localities and enjoyed good ventilation and amenities.

About 50 per cent of the families possessed gold ornaments, whose value did not exceed Rs. 2,500 per family. The family in this group possessed the necessary furniture and costly clothes in a few cases. Many had bicycles, radio sets, wrist watches, clocks, electric fans, musical instruments and, in some cases motor cars as well.

Rural Areas.

RURAL AREAS: An assessment of the standard of life of the rural population involves certain difficulties. In rural areas several barter transactions take place even now in agricultural produce and it is very difficult to bring about their full economic significance. So also almost all rural classes are in one way or other connected with the cultivation of land. They claim a share in the agricultural produce. Many cultivators' families supplement their income from the main occupation with the help they receive from their relatives residing in urban areas. In these circumstances, a clear-cut differentiation among these classes and their occupations is not possible. All the same, an account to be generally intelligible can proceed only on the basis of occupation and on the calculation in terms of monetary earnings and expenditure.

The sample survey in this area was conducted in nine villages from which family budgets numbering about 60 were collected and classified into three categories on the basis of annual incomes The groups were as under:−

Low-income group...Up to Rs. 1,000.

Middle-income group...Rs, 1,000 to Rs. 3,000.

Higher-income group...Rs. 3,000 and above.

Low-Income Group.

LOW-INCOME CROUP: This group is mainly composed of artisans and farm workers who earn their living by working as artisans and labourers on farms.

The average size of the families surveyed was six persons including two minors. Each family had a maximum of eight persons including two minors and a minimum of two adults. On an average, there were two earners per family.

Five families in this group possessed land which provided them a supplementary source of income in addition to the wages they earned as farm workers. However, holdings of these families were so tiny that it became difficult or almost impossible for them to eke out an existence from farm income alone.

More often than not these families worked on the farms of others. The average holding per family was 1.75 acres. They did not possess the basic equipment of an average cultivator nor did they have bullocks, ploughs, or minor implements, which were borrowed from tenant cultivators. They did not possess milch cattle.

It is against this background that the whole picture of this group is to be viewed. The small house in which they live could more correctly be described as a hut and their tiny holdings and meagre equipment seemed to be all that they possessed.

The income of these families on an average hardly exceeded Rs. 55 to Rs. 60 per month. About four families earned less than Rs. 50 per month and the remaining thirteen between Rs. 50 and Rs. 83 per month.

The earnings of the family fell short to meet the normal needs of a family consisting of five units. Most of the members of these families had employment of a seasonal nature which affected their aggregate total earnings of the year. In the off season they were, therefore, forced to seek alternative employment or to go without employment. Their womenfolk also supplemented the family income by taking to agricultural labour.

It is difficult to speak of a regular family budget of this class as the tenor of their life fluctuated almost from day-to-day. Agriculturally busy seasons meant enough food for them as their wages were usually paid in kind and their womenfolk also found employment during the period. The days of good employment brought them a fair satisfaction of their primary wants.

The monthly expenditure of such a family is spread over in such a manner as to cover only the bare necessities of life.

The expenditure pattern of these families showed that most of their earnings were spent on food-grains, oils, vegetables, etc., which accounted for nearly 73 per cent. On an average each family spent Rs. 32 on cereals, Rs. 4.8 on oils, Rs. 3.3 on vegetables and Rs. 1.2 on fuel.

Their expenditure on clothing was Rs. 11 per month. The expenditure on food which represented the major item of their budget left only a small margin to cover other items of expenditure. The expenditure on other items was mostly met by incurring debt. Each family had debt varying from Rs. 500 to Rs. 2,000.

Housing conditions of these people were far from satisfactory. Most of them lived in huts made of straw and bamboos. The household utensils were made up of earthen pots and bedding consisted of worn-out carpets and Kamblis. This group, therefore, hardly got adequate income to satisfy all their physical needs. This was due to the lack of continuous employment throughout the year.

Middle-Income Group.

MIDDLE INCOME GROUP: This group with an income of between Rs. 1.000 and Rs. 3,000 was composed of medium agriculturists, tenant cultivators and artisans. They represented the middle class in the villages. The medium cultivator stands between the aristocrats at the top and that group of villagers who are part-time farmers or landless labourers at the bottom. Like families in the same groups in the other districts, most of them followed agriculture as their main occupation. Their average holding did not exceed five acres. A few families owned the land they cultivated. A few of them were tenant cultivators. Five artisan families followed household industries as the main source of livelihood. They also owned in addition a small piece of land, the income from which provided them a subsidiary source of livelihood. Houses, agricultural implements, including bullock-carts, ploughs, etc., and milch cattle such as a cow or a buffalo were a few of their possessions. Ten families owned their houses which were modest in size and the remaining families resided in rented premises. Families having land as the main source of livelihood possessed bullock-carts and a few other agricultural implements such as ploughs, hoes, drills, spades, etc., and cows or buffaloes.

The average size of the family generally varied between two and ten adults and two and five minors. The average, however, worked out at four adults and three minors. Instances of families with too big or too small a size were very few. On an average each family had one earning member. The womenfolk and children also helped the male members in their agricultural pursuits.

The average earnings from all sources of the families belonging to this group came to about Rs. 120 per month or Rs. 1,440 per year. Six families were having income between Rs. 1,000 and Rs. 1,200, nine between Rs. 1,200 and Rs. 1,500 and three about Rs. 2,000. The standard of life of families in this group cannot be termed as high as their income was just enough to meet the bare necessities of life.

Being mainly agriculturists, the families were partially self-sufficient in respect of articles such as foodgrains. This renders difficult the task of computing their expenses on such articles. They could only be calculated at their prevailing prices.

On an average the family in this group spent Rs. 80 per month on cereals, oils, vegetables and fuel. The total monthly expenditure on these items formed about 70 per cent of their total expenditure. Unlike the families of landless labourers these families spent more on cereals, vegetables, oils, etc. Their expenditure on clothing was Rs. 15 per month. Rent accounted for five per cent of their total expenditure. The rest of the income was spent on miscellaneous items including repairing of houses, implements, etc.

The fact that the families belonging to this group were in a position to meet their expenses at a bare minimum did not impose upon them the traditional burden of debt for unproductive purposes. Debts which were incurred by the families were comparatively small and they had been contracted mostly for productive purposes. The savings represented just a fraction of their total income. Of the families surveyed, only ten were found to have saved about Rs. 600 each.

Household equipment possessed by these families was confined to articles of daily use such as brass, copper and earthen utensils, crockery, mirror and some pieces of furniture like chair or a stool. Their beddings, too, were quite ordinary consisting of blankets, chaddars, etc. Very few families possessed gold ornaments,

Higher-Income Group.

HIGHER-INCOME GROUP:This group is composed of families with an annual income over Rs. 3,000. Big cultivators cultivating land by themselves or with hired labour constituted this group. These farmers cultivated holdings of a considerable size. Fifteen families from this group were surveyed. The following table indicates the percentage distribution of families surveyed on the basis of their annual income:−

An average family usually composed of three adults and three minors.

These families derived their income from the land they cultivated. The average annual income of these families from all sources amounted to Rs. 3,700. Only two families earned house rent in addition to income from land. The income of these families was more than double the annual income of the families of medium agriculturists. The following table shows the income per head of the families in both the groups:−

Their possessions were their residential places, their agricultural implements, milch cattle and bullocks. Four families had somewhat spacious houses.

For foodgrains, vegetables, milk and fuel, these farmers mostly depended upon their own farms and cattle. They seemed to be more or less assured of the supply of these basic necessities on account of a fairly large size of farms.

The total monthly expenditure per family averaged about Rs. 140 of which food and lighting accounted for 60 per cent; clothing 10 per cent; education 7 per cent and the rest 23 per cent. In comparison with families in the middle income group in rural areas these families spent proportionately less on food and clothing. Their expenditure on other items like entertainment and miscellaneous items was more than that in the middle income group.

The fact that the income of these families was enough to meet their requirements was evidenced from their capacity to save. The total savings of these families were Rs. 24,000. Only one family had a debt of Rs. 4,000. It was borrowed at six per cent from a local bank for productive use.

The household equipment of the families was adequate. They used brass and copper utensils and had beddings consisting of mattresses, pillows, rugs, and chaddars.

Summary.

The analysis of the budgets of the families surveyed from the different economic classes in the villages, presents a broad picture of the rural standard of living.

Except for a small minority belonging to the higher income group, the majority of the population in villages lived almost on the margin of subsistence and were in a very precarious condition. They formed a substantial portion of the community and, if they were provided opportunities of alternate employment, there would be a perceptible improvement in their living standards. The middle income group was slightly in a better position because its income was sufficient to cover its bare requirements. Even in this case it was rather difficult to draw a line of demarcation between balancing the budget and falling into a deficit. Once this balance was upset, financial malaise went on deepening. Even though the annual income of an individual family ranged from Rs. 1,000 to Rs. 3,000 when distributed over its members, it amounted to less than the per capita national income of Rs. 365. It many also he noticed that except in the case of families belonging to the highest income group the proportion of capital expenditure to total income was very small. Since food alone absorbed more than half the income, practically no margin was left for acquiring other amenities essential to decent life. Majority of the families in rural areas lived in thatched houses and their apparel bore eloquent testimony to their poverty. Sanitation and modern amenities like electric lighting, tap-water, etc., were found only at a few places in the region.

In the urban areas the standard of living presented a somewhat different picture. Although on the basis of the data collected, one cannot come to any accurate conclusion, one could say that living conditions were improving. Pucca houses, modern facilities like electric lighting and tap-water were found in most of the towns. Improved sanitary conditions were also to be noticed in some parts of the region. Education was spreading at a fairly rapid rate even among the backward classes. People were gradually adopting new modes of living. The general trend observed in the pattern of expenditure was to spend more with a view to getting more comforts than to save for the future. The lower middle class which could hardly afford to balance the budget was putting up with great hardships because prices of essential commodities continued to soar higher and higher.

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