|
Theme
of the week:
All-India
Debt and Investment Survey
Section
14
Cost
of Debt – Purpose-wise Debt
*
“It is a sign of flourishing economic activity in the
society if large numbers of households have taken
loans and the loan taken is utilised for productive
purpose”.
AIDIS
I
Introduction
The
National Sample Survey Organization (NSSO) has collected in their
59th round conducted during calendar year 2003
(January-December) through All-India
Debt and Investment survey (AIDIS) hr information on the purpose for which
a lon was taken by households besides various other characteristics of
households nd their loan particular. Different theme notes have been
submitted earlier covering various characteristics of households
indebtedness t all
India
and state level for rural and urban households. This note 13 in the
series, attempts the analysis the reasons or the purpose for which
households borrowed cash loans from various institutional and
non-institutional agencies and their end uses.
The
purpose for which a loans are taken by household can be more than one. In
such cases, the purpose for which the maximum amount of loan were
originally intended to spent, has been considered as the main purpose of
loan by the NSSO. Secondly, even if a loan was utilized for a purpose
other than the one specified in the contractual document, the original
purpose of borrowing was only considered by the NSSO.
The
purposes for which a loan has been borrowed are broadly grouped under a)
productive and non-productive. While the former covers both capital and
current expenditures in farm and non-farm business, the latter covers the
purposes like daily household expenditures, purchase of consumer goods,
litigation, repayment of debt, etc. The analytical details of these
results are presented in the following sections.
II
Debt
According to Purpose
Table
1 presents households expenditure of cash loans outstanding classified
into productive and non-productive expenditures, as revealed by the result
of NSSO’s 59th
round survey ( Report N0 501).
Table
1: Broad Pattern of Households – Debt By Purpose
|
|
Rural
|
Urban
|
All
|
Number
of Households (in million)
|
|
Total
Households
|
147.9
|
(100.0)
|
55.5
|
(100.0)
|
203.4
|
(100.0)
|
|
Indebted
Households
|
39.2
|
(26.5)
|
9.9
|
(17.8)
|
49.1
|
(24.1)
|
|
Productive
Purpose
|
19.3
|
(13.0)
|
2.0
|
(3.6)
|
21.3
|
(10.5)
|
|
Non-Productive
Purpose
|
22.9
|
(15.5)
|
8.2
|
(14.8)
|
31.1
|
(15.3)
|
Amount
of Cash Debt and Purpose-wise Expenditure ( in Rs crore)
|
|
Total
Cash Debt Outstanding
|
111468
|
(100.0)
|
65327
|
(100.0)
|
176795
|
(100.0)
|
|
Productive
Purpose
|
59078
|
(53.0)
|
16267
|
(24.9)
|
75345
|
(42.6)
|
|
Non-Productive
Purpose
|
52390
|
(47.0)
|
49060
|
(75.1)
|
101450
|
(57.4)
|
|
Note:
Data on households is as given by NSSO in their report No. 501.
The sum of Individual items will not tally with total.
Data
on cash debt is worked out by applying the respective ratios to
the total debt.
Figures
in brackets are percentages to total.
Source:
NSSO (2005), AIDIS, Report No. 501.
|
It
may be seen from the Table that
out of 203.4 million households in
India
, 49.1 million households
forming about 24.1 per cent are indebted by an aggregate amount of Rs.
176,795 crore. Out of this, an amount of
Rs. 75,345 crore or 42.6 per cent of their total debt has been
spent by 21.3 million indebted households (10.5 per cent of total
households) on productive purposes (Table 1). As against this, 31.1
million indebted households forming about 15.3 per cent of total
households reported Rs. 101,450 crore or 57.4 per cent of total debt for
non-productive purposes.
Out
of 39.2 million indebted rural households, 19.3 million households
reported an amount of Rs. 59,078 crore or 53.0 per cent of their total
debt for productive purposes. A sum of Rs. 52,390 crore or 47.0 per cent
of the total debt outstanding had been spent on non-productive purposes,
by 22.9 million indebted households.
In
contrast, in urban areas, 8.2 million indebted households reported
an amount of Rs. 49,060 or 75.1 per cent of their total debt for
non-productive purposes. A small portion of
urban households numbering 2.1 million debt for productive purposes
with a sum of Rs. 16,267 crore or about 25 per cent of their total debt.
III
Productive
Purposes
As
stated, the expenditure incurred for productive purposes can be incurred
in farm or non-farm business and for capital/ current expenditures.
Productive utilization of debt incurred by households will help augment
their economic activities and thereby promote economic welfare. On the
other hand, if debt is incurred for purposes, which do not produce any
increase in production of goods and services, then such expenditure gets
classified as unproductive. Hence, understanding of the purposes of loan
taken becomes crucial. Thus, purposes of loan taken have been broadly
classified, as stated, as
productive purposes and non-productive purposes,
i.e. for household expenditure.
Farm
business
includes household economic activities like cultivation, including
cultivation of plantation and orchard crops and processing of produce on
the farm, e.g., paddy hulling and gur making if it is carried out in the
firm by indigenous method. It also includes ancillary agriculture
activities such as livestock raising, poultry, fishing, dairy, bee keeping
and other allied activities coming under tabulation category A and B of
the National Industrial Classification 1998. Expenditure incurred in farm
business on account of purchase, own construction, major repairs, building
and other land improvements including reclamation of land, alterations and
improvement of buildings and other constructions constitute capital
expenditure. The current expenditure includes expenditure for purchase of
seeds, manure, fodder, payment of wages, rent, land revenue, etc. and also
expenditure on normal repairs and maintenance of building, machinery and
transport equipment, furniture and fixtures and household durables meant
for farm business.
|
Table
2: Estimated Number of Households and Debt
|
|
Productive
Purposes - Farm Business
|
|
|
Rural
|
Urban
|
All
|
|
Number
of Households in ' 00
|
|
Productive
|
193582
|
(100.0)
|
19767
|
(100.0)
|
213349
|
(100.0)
|
|
Farm
Business
|
151187
|
(78.1)
|
224
|
(1.1)
|
151411
|
(71.0)
|
|
Capital
Expenditure
|
81932
|
(42.3)
|
92
|
(0.5)
|
82024
|
(38.4)
|
|
Current
Expenditure
|
75476
|
(39.0)
|
132
|
(0.7)
|
75608
|
(35.4)
|
|
Amount
of Cash Debt in Rs.crore
|
|
Productive
|
59078
|
(100.0)
|
16267
|
(100.0)
|
75345
|
(100.0)
|
|
Farm
Business
|
45702
|
(77.4)
|
5689
|
(35.0)
|
51391
|
(68.2)
|
|
Capital
Expenditure
|
29873
|
(50.6)
|
4685
|
(28.8)
|
34558
|
(45.9)
|
|
Current
Expenditure
|
15829
|
(26.8)
|
1004
|
(6.2)
|
16833
|
(22.3)
|
|
Note:
Data on households is as given by NSSO in their report No. 501
Sum of individual will not tally with the total Data on
cash debt is worked out by applying the respective ratios to the
total debt.
|
|
Figures
in brackets are percentages to total.
|
|
Source:
NSSO (2005), AIDIS, Report No. 500.
|
Out of the 21.3 million indebted households who reported of Rs.
75,345 crore debt for productive purposes, 15.1 million households or 71
per cent of the households, reported an amount (of Rs. 51,391 crore or
68.2 per cent of productive debt) for productive purposes on farm
business. Among these households 38.4 per cent reported debt for capital
expenditure and 35.4 per cent for current expenditure.Of the debt for
productive purposes, an amount of RS.16,833 crore has been for current
expenditure and Rs. 34,558 crore has been for capital expenditure purposes
( Table 2). In rural areas, 15.1 million households (78.2 per cent of the
households who reported debt for productive purpose as on 30-6-2002),
reported debt for expenditure on farm business to the tune of Rs. 45,702
crore with capital expenditure purpose amounting to Rs. 29,873 crore and
for current expenditure, Rs. 15,829 crore. In urban areas a tiny 1.1 per
cent household reported debt for incurred expenditure on farm business
aggregating Rs. 5,689 crore
with capital and current expenditure purpose amounting to Rs. 4,685 crore
and Rs. 1,004 crore, respectively.
Non-Farm
Business
is defined as all activities of households other than those covered in the
farm business. This covers manufacturing, mining and quarrying, trade,
hotels and restaurant, transport, construction, repairing and other
services. Any activities carried out in non-household enterprises are
excluded from the above definition. Also, non-farm business enterprises,
which were registered under section 2m(i) or 2m(ii) and Section 85 of
Factories Act 1948 and bidi and cigar manufacturing establishments
registered under Bidi
and Cigar Workers (condition of employment) Act, 1966 were also not
included in the above definition. The expenditure is treated as capital,
if the households spend the cash dues for purchase, own construction,
additions, alterations, major repairs and improvement of buildings, other
constructions, machinery and transport equipment, furniture and fixture,
etc. Expenditure on bundings and other land improvement including
reclamation of land, pertaining to non-farm business also included in
capital expenditure. Current expenditure on non-farm business has also
been includes expenditure on account of purchase of raw materials, fuel
and lubricants, payment of rent, salary and wages, hire charges of
machinery and equipment, etc., and normal repairs and maintenance of
buildings, construction, machinery and equipment including transport
equipment, furniture and fixtures and household durables meant for the
non-farm business.
|
Table
3 : Estimated Number of Households and Reported Debt
|
|
Productive
Purposes - Non-Farm Business
|
|
|
Rural
|
Urban
|
All
|
|
Number
of Households in ' 00
|
|
Productive
|
193582
|
(100.0)
|
19767
|
(100.0)
|
213349
|
(100.0)
|
|
Non-Farm
Business
|
42305
|
(21.9)
|
14896
|
(75.4)
|
57201
|
(26.8)
|
|
Capital
Expenditure
|
30409
|
(15.7)
|
10341
|
(52.3)
|
40750
|
(19.1)
|
|
Current
Expenditure
|
12356
|
(6.4)
|
4787
|
(24.2)
|
17143
|
(8.0)
|
|
Amount
of Cash Debt in Rs.crore
|
|
Productive
|
59078
|
(100.0)
|
16267
|
(100.0)
|
75345
|
(100.0)
|
|
Non-Farm
Business
|
13376
|
(22.6)
|
12869
|
(79.1)
|
26245
|
(34.8)
|
|
Capital
Expenditure
|
10255
|
(17.4)
|
10779
|
(66.3)
|
21034
|
(27.9)
|
|
Current
Expenditure
|
3121
|
(5.3)
|
2090
|
(12.8)
|
5211
|
(6.9)
|
|
Note:
Data on households is as given by NSSO in their report No. 501.Sum
of individual will not tally with the total. Data on cash debt is
worked out by applying the respective ratios to the total debt
|
|
Figures
in brackets are percentages to total.
|
|
Source:
NSSO (2005), AIDIS, Report No. 501.
|
An
amount of Rs. 26,245 crore or about 35 per cent of the total debt for
productive purposes, has been reported for non-farm business by 5.7
million households as on 30-6-2002. Of these households, the incidence of
debt between capital and current expenditures on non-farm business is 19.1
per cent and 8.0 per cent respectively, and they had absorbed 27.9 per
cent and 6.9 per cent of the debt of Rs. 75,345
crore reported for
productive purposes.
In
rural areas ,2 million households reported debt for productive purposes in
non-farm business aggregating to Rs. 13,376 crore with capital expenditure
being Rs. 10, 255 crore and current expenditure at Rs. 3,121 crore.
Unlike
rural households, urban households reported debt spent more for productive
non-farm business. About 1.5 million indebted households, forming 75.4 per
cent of urban households reporting debt for productive purposes reported
debt for non-farm business an amount of Rs. 12,869 crore.. On this amount,
debt for capital and current
expenditure purposes amounted to Rs. 10,779 crore and 2,090 crore.
IV
Non-Productive
Purposes
As defined earlier debt
for non-productive purposes
includes household expenditure, expenditure on litigation, repayment of
debt, financial investment and other expenditure.
Household expenditure is
defined to include purchase of residential plot, construction, addition,
alteration of building for residential purposes, purchase of durable goods
and assets, clothes, etc. and expenditure of medical treatment, education,
marriages, ceremonies etc.
Out of the 31.1 million
indebted households who reported debt of Rs. 1,01,450 crore for
non-productive purposes, 26.0 million households (or 83.6 per cent)
reported debt for expenditure on household goods amounting of
Rs. 76,577 crore or 75.5 per cent of total debt for
non-productive purposes.
Similar trend is also
witnessed among both rural and urban households (Table 4).
|
Table
4: Estimated Number of Households and Debt
|
|
Non-Productive
Purposes
|
|
|
Rural
|
Urban
|
All
|
|
Number
of Households in ' 00
|
|
Non-Productive
|
229106
|
(100.0)
|
81592
|
(100.0)
|
310698
|
(100.0)
|
|
Household
Expend.
|
190816
|
(83.3)
|
68945
|
(84.5)
|
259761
|
(83.6)
|
|
Others
|
42840
|
(18.7)
|
14229
|
(17.4)
|
57069
|
(18.4)
|
|
Amount
of Cash Debt in Rs. crore
|
|
Non-Productive
|
52390
|
(100.0)
|
49060
|
(100.0)
|
101450
|
(100.0)
|
|
Household
Expend.
|
39014
|
(74.5)
|
37563
|
(76.6)
|
76577
|
(75.5)
|
|
Others
|
13376
|
(25.5)
|
11497
|
(23.4)
|
24873
|
(24.5)
|
|
Note:
Data on households is as given by NSSO in their report No. 501,
Data on cash debt is worked out by applying the respective ratios
to the total debt .Sum of individual items will not tally with the
total.
|
|
Figures
in brackets are percentages to total.
|
|
Source:
NSSO (2005), AIDIS, Report No. 501.
|
V
Purpose
of Households Debt by
Occupational Categories
Rural
Households
The
purpose of debt of rural household classified by their occupational
categories, i.e., by cultivators and non-cultivator categories are
presented in Table 5.
All rural households
operating at least 0.002 hectare of land during the last 365 days
preceding the date of survey have been defined as cultivator households.
As per the survey they have borrowed more for productive purposes than by
non-cultivator households. While the share of the former was around 62 per
cent of their debt as on June 30, 2002, the latter held only a share of 28
per cent for productive purposes.
Out of 88.2 million
cultivator households, 26,2 million (or 29.7 per cent) households
are indebted. Among them, 15.7 million households ( or 17.8 per
cent total cultivator households) invested about 62 per cent of their
total debt of Rs. 505,777 crore in productive purposes. The remaining debt
of Rs. 311,310 crore (or 38 per cent of their debt) was utilized for
non-productive purposes by 12.9 million indebted cultivator households.
Household expenditure is the major item of purpose among non-productive
purposes and the debt reported against this purpose is estimated to be
Rs.226,333 crore.
Rural households
operating no land or holding land less than 0.002 hectare, are termed as
non-cultivator households and they are further classified into
agricultural labourers and artisans. As referred to above, about 28 per
cent of their cash debt was for productive purposes and the remaining
amount was for non-productive purposes with Rs. 163,675 crore meant for
household expenditure.
|
Table
5 : Purpose of Debt of Rural Households – Occupational
Categories
|
|
|
Cultivator
|
Non-Cultivator
|
|
|
No.of
Hhs
|
Cash
Dues
|
No.of
Hhs
|
Cash
Dues
|
|
|
Million
|
Rs.crore
|
Million
|
Rs.crore
|
|
Productive
Purpose
|
15.7
|
(17.8)
|
505777
|
(61.9)
|
3.60
|
(6.1)
|
84218
|
(28.3)
|
|
Farm
Business
|
13.6
|
(15.4)
|
428971
|
(52.5)
|
1.50
|
(2.5)
|
27676
|
(9.3)
|
|
Non-Farm
Business
|
2.1
|
(2.4)
|
76806
|
(9.4)
|
2.10
|
(3.6)
|
56542
|
(19.0)
|
|
Non-Productive
Purpose
|
12.9
|
(14.6)
|
311310
|
(38.1)
|
10.00
|
(16.8)
|
212480
|
(71.4)
|
|
Household
Expenditure
|
10.7
|
(12.1)
|
226333
|
(27.7)
|
8.50
|
(14.2)
|
163675
|
(55.0)
|
|
Others
|
2.2
|
(2.3)
|
84977
|
(10.4)
|
1.50
|
(2.5)
|
48805
|
(16.4)
|
|
All
Purpose
|
26.2
|
(29.7)
|
817087
|
(100.0)
|
13.00
|
(21.8)
|
297591
|
(100.0)
|
|
Note:
Figures in brackets are percentage to total households/cash loans
of respective
|
|
occupational
categories. Total will not tally due to rounding off and not
reported
|
|
Source:
NSSO (2005), AIDIS, Report No. 501.
|
Urban
Households
Urban
households are broadly grouped under ‘self employed’ and ‘others’.
Self-employed households are those engaged in the farm or non-farm
enterprises of their households and in urban areas, a household was
considered as self-employed, if major source of income during 365 days
preceding the date of survey was derived from self-employment of its
members. Urban households reporting the major source of its income was
derived from regular wage/salaried employment of members were treated as
‘regular wage/salaried’ households. Casual labour household are those
household whose members derives their income mainly from casual wage
employment. All the remaining urban households were treated as ‘other’
households.
Out of 20.1 million
self-employed households, 3.60 million or 17.9 per cent are indebted.
Among them, 1.50 million households forming 7.5 per cent of total self
employed households, invested about 55 per cent of their total debt, Rs.
134,604 crore in productive purposes. The remaining debt of Rs. 108,803
crore or about 45 per cent of their total debt has been utilised for
non-productive purpose by 2.25 million self-employed households. Household
expenditure is the major item of expenditure among non-productive purposes
and debt for this purpose is estimated to be 79,837 crore.
|
Table
6: Purpose of Debt Urban Households – Occupational Categories
|
|
|
Self-Employed
|
Others
|
|
|
No.of
Hhs
|
Cash
Dues
|
No.of
Hhs
|
Cash
Dues
|
|
|
Million
|
Rs.crore
|
Million
|
Rs.crore
|
|
Productive
Purpose
|
1.50
|
(7.5)
|
134604
|
(55.3)
|
0.46
|
(1.3)
|
27864
|
(6.8)
|
|
Farm
Business
|
0.34
|
(1.7)
|
28235
|
(11.6)
|
0.14
|
(0.4)
|
5327
|
(1.3)
|
|
Non-Farm
Business
|
1.16
|
(5.8)
|
106369
|
(43.7)
|
0.32
|
(0.9)
|
22537
|
(5.5)
|
|
Non-Productive
Purpose
|
2.25
|
(11.2)
|
108803
|
(44.7)
|
5.91
|
(16.7)
|
381492
|
(93.1)
|
|
Household
Expenditure
|
1.89
|
(9.4)
|
79837
|
(32.8)
|
4.99
|
(14.1)
|
295441
|
(72.1)
|
|
Others
|
0.36
|
(2.3)
|
28965
|
(11.9)
|
0.92
|
(2.6)
|
86461
|
(21.1)
|
|
All-Purpose
|
3.60
|
(17.9)
|
243407
|
(100.0)
|
6.30
|
(17.8)
|
409766
|
(100.0)
|
|
Note:
Figures in brackets are percentage to total households/cash loans
of respective
|
|
occupational
categories. Total will not tally with sum of the component due to
rounding off and not reported
|
|
Source:
NSSO (2005), AIDIS, Report No. 501.
|
The urban households
which are termed as ‘Others’ utilized 93.1 per cent of their debt forn
non-productive purposes and in particular for household expenditure which
amounts to Rs. 295,441 crore
or 72.1 per cent of their total debt (Table 6). Their outlay on productive
purpose is less than 7 per cent of their total debt.
VI
Trend
in Productive Debt Over the Years
The trends
in the share of debt for productive purpose over the period from 1951 for
rural households have been presented in Table 7. The percentage of cash
debt spent on productive purposes was at 43 per cent in 1951, which after
falling to 38 per cent in 1962, picked up in the next two decades to reach
66 per cent by 1981. However, in the next two decades, there has been a
drastic fall in the share to 53.0 per cent in 2002 (Data for 1991 in this
respect, appear an aberration).
Overall,
the portion of total household debt in rural areas utilized for
consumption purpose has been on rise rather for productive purposes.
|
Table
7: Percentage Distribution of Cash Debt by Purpose of Loan
|
|
Rural
Households
|
|
Purpose
of Loans
|
1951
|
1962
|
1971
|
1981
|
1991
|
2002
|
|
Farm-Business
|
37.2
|
32.5
|
44.6
|
60.0
|
15.0
|
41.0
|
|
Capital
Expenditure
|
27.9
|
23.9
|
31.1
|
42.4
|
12.0
|
26.8
|
|
Current
Expenditure
|
9.3
|
8.6
|
13.5
|
17.6
|
3.0
|
14.2
|
|
Non-Farm
Business
|
6.6
|
5.9
|
5.5
|
8.9
|
7.8
|
12.0
|
|
Capital
Expenditure
|
1.7
|
3.8
|
7.2
|
5.8
|
9.2
|
|
Current
Expenditure
|
4.2
|
1.7
|
1.7
|
2.0
|
2.8
|
|
Productive
Purpose
|
43.8
|
38.4
|
50.1
|
65.9
|
22.8
|
53.0
|
|
Non-Productive
|
56.3
|
61.6
|
49.9
|
34.1
|
77.2
|
47.0
|
|
Household
Expenditure
|
50.2
|
51.3
|
40.9
|
22.4
|
40.1
|
35.0
|
|
Other
Purposes
|
6.1
|
10.3
|
9.0
|
8.7
|
37.1
|
12.1
|
|
Repayment
of Debt
|
4.9
|
1.8
|
0.8
|
|
1.4
|
|
Expenditure
on Litigation
|
1.6
|
0.7
|
0.2
|
|
0.3
|
|
Financial
Investment
|
0.2
|
0.7
|
0.9
|
|
0.7
|
|
All
|
100.0
|
100.0
|
100.0
|
100.0
|
100.0
|
100.0
|
|
Note
: Other purpose includes also not reported/unspecified.
|
|
|
|
Source:
See Table 1 and NSSO 48th Round Survey
|
|
|
|
RBI(1997), K.G.K.Subba Rao, K.S.Ramachandra Rao and
A.K.Tripathi,
|
|
"
Indebtedness of Rural Households-A Profile", RBI Occassional
Papers
|
|
June-September.
|
|
|
|
|
Cultivator
and Non-Cultivator Households
A better
insight in to the changing pattern in purpose of debt of rural households,
is brought out by analyzing the behaviour of cultivator and non-cultivator
households in rural areas (Tables 8 and 9).
Cultivator
households have a much higher proportion of debt earmarked for productive
purposes than non-cultivator households.
But, the fluctuating trend shown above are generally valid for both
the categories of rural households. It is interesting to note for
cultivator households, the declining share of farm business expenditure
(from 63.8 per cent in 1981 to 52.5 per cent in 2002) in the total debt
and within it, that of capital expenditure (from 45.3 per cent to 34.3 per
cent) (Table 8).
The increase in the share of non-farm business expenditure for
capital or current expenditures purposes has not compensated
the decline in share of farm business expenditure.
|
Table
8: Percentage Distribution of Cash Debt by Purpose of
|
|
Loans
- Rural Areas - Cultivator Households
|
|
Purpose
of Loans
|
1962
|
1971
|
1981
|
1991
|
2002
|
|
Farm-Business
|
36.6
|
49.7
|
63.8
|
17.6
|
52.5
|
|
Capital
Expenditure
|
26.8
|
34.7
|
45.3
|
14.4
|
34.3
|
|
Current
Expenditure
|
9.8
|
15.0
|
18.5
|
3.2
|
18.2
|
|
Non-Farm
Business
|
3.5
|
4.3
|
7.8
|
6.2
|
9.4
|
|
Capital
Expenditure
|
1.4
|
3.2
|
6.3
|
4.7
|
7.4
|
|
Current
Expenditure
|
2.1
|
1.1
|
1.5
|
1.5
|
2.0
|
|
Productive
Purpose
|
40.1
|
54.0
|
71.6
|
23.8
|
62.9
|
|
Non-Productive
|
60.0
|
46.0
|
28.4
|
76.2
|
38.1
|
|
Household
Expenditure
|
49.2
|
37.8
|
20.0
|
36.1
|
27.7
|
|
Other
Purposes
|
10.8
|
7.2
|
8.4
|
39.1
|
10.4
|
|
Repayment
of Debt
|
5.0
|
1.5
|
0.1
|
|
1.5
|
|
Expenditure
on Litigation
|
1.8
|
0.7
|
0.8
|
|
0.3
|
|
Financial
Investment
|
0.2
|
0.2
|
1.0
|
|
0.6
|
|
All
|
100.0
|
100.0
|
100.0
|
100.0
|
100.0
|
|
Source:
See Table 7
|
|
|
|
|
|
Table
9: Percentage Distribution of Cash Dues by Purpose of
|
|
Loans
- Rural Non- Cultivator Households
|
|
Purpose
of Loans
1962 1971
1981 1991
2002
|
|
Farm-Business
|
8.7
|
7.5
|
14.3
|
3.1
|
9.3
|
|
Capital
Expenditure
|
6.9
|
5.0
|
8.4
|
2.4
|
6.3
|
|
Current
Expenditure
|
1.8
|
2.5
|
5.9
|
0.7
|
3.0
|
|
Non-Farm
Business
|
20.2
|
13.7
|
23.3
|
13.6
|
19.0
|
|
Capital
Expenditure
|
3.5
|
8.0
|
18.8
|
9.8
|
14.2
|
|
Current
Expenditure
|
16.7
|
5.7
|
4.5
|
3.8
|
4.8
|
|
Productive
Purpose
|
29.0
|
21.2
|
37.6
|
16.7
|
28.5
|
|
Non-Productive
|
71.0
|
78.8
|
62.4
|
83.3
|
71.5
|
|
Household
Expenditure
|
63.6
|
63.4
|
51.0
|
55.2
|
55.0
|
|
Other
Purposes
|
7.3
|
15.4
|
11.4
|
28.1
|
16.5
|
|
Repayment
of Debt
|
4.4
|
4.0
|
1.5
|
|
1.3
|
|
Expenditure
on Litigation
|
1.0
|
1.2
|
0.0
|
|
0.2
|
|
Financial
Investment
|
0.1
|
1.0
|
0.5
|
|
1.0
|
|
All
|
100.0
|
100.0
|
100.0
|
|