INSTITUTE OF PROFESSIONAL EDUCATION AND RESEARCH, BHOPAL

MANAGERIAL ECONOMICS
Report on

EXPENDITURE PROFILE PATTERN

BHEL-BHOPAL AREA

Submitted to: Submitted by:

Prof. Nikhil Maheshwari Aditya Desai

Bhawani Bajpai
Neha Khatri
Richa Mirchandani
Saurav Pandey
 EXPENDITURE PROFILE PATTERN
This is a comprehensive report that outlines household income profile of the people staying in
chunnabhatti, Bhopal, Madhya Pradesh. The expenditure pattern of these households is each of four
income groups, showing the potential value for each expenditure categories.

The series of reports provide information on the potential value and trend of expenditure by
households on each of the categories of expenditure. The analysis is done in a comparable manner
for all families’ covered thereby enabling meaningful comparison of markets and determination of
where the best potential lies.

The expenditure categories covered are: Food and non-alcoholic beverages,Clothing and footwear,
Household operations, Health, Transport, Communications, Recreation and Culture, Education,
Other (personal care, personal services, misc).

The report begins with a brief profile of the family in terms of total size, age profile. It then details
the overall trend in distribution of households by income level and for each of four income segments
the proportion that is consumption expenditure.

Below are the various expenditure profile patterns of families of BHEL area. The income
group we took for our study was :
Up to Rs. 25000/- p.m.
Between Rs.25001 – Rs.50000
Between Rs.50001 – Rs.75000
Between Rs.75001 – Rs.100000

INCOME UPTO Rs.25000/-

We visited two families having their income upto Rs.25000/- per month in the BHEL area. The basic
contact details which they gave is as below:

Family A Family B

Name: A.K. Banerjee P.K. Verma

Work Profile: Eng. (Mec.) Medical shop

Address: 128-A Indrapuri (BHEL) 160-B Indrapuri (BHEL)

Contact:

Family A was a nuclear family wheras family B was a joint family. The questionnaire which was filled
by the above two families are as follows:
 QUESTIONNAIRE

Family A Family B

Name: A.K. Banerjee P.K. Verma

Work Profile: Eng. (Mec.) Medical shop

Address: 128-A Indrapuri (BHEL) 160-B Indrapuri (BHEL)

Contact:

S.no Particulars Family A Family B

1.) How many members are there in your family? 5 8

2.) How many are earning members? 1 1

3.) In which slab does your family income come? Upto-25,000 Upto-25000

 Upto- 25,000
 25,001-50,000
 50,001-75,000
 75,001- above

4.) How much do you spend on Food?

 Rashan 3000 4500

 Gas Fuel 400 500

 Fruits, Vegetables & Sweets 500 400

 Hotels & Restaurants 300 200

5.) How much do you spend on Clothes? 500 500

6.) How much do you spend on House Expenses?

 Rent 3000 --

 Repairs & Maintenance -- 200

 EMI’s -- --

7.) How much do you spend on Vehicle Expenses?

 Petrol 500 800

 Servicing
 EMI’s

8.) How much do you spend on Education?

 School/ College Fee 5000 4500

 Education Loan

9.) How much do you spend on Recreation?

 Movies 200 --
 Parties

10.) How much do you spend on Medical Expenses?

 Medicine -- 300
 Monthly Checkups

11.) How much is your Travelling Expenses? 200 400

12.) How much Tax you pay in a year?

 Income Tax -- --
 Property Tax
 Water Tax -- --

-- --

13.) How much do you spend on Communication?

 Landline Bill 100 200

 Mobile Bill
  Broad band 300 500

-- --

14.) Approximately how much you pay on Electricity? 500 600

15.) How much approximately you pay on Miscellaneous

Expenses?

 Beauty Saloon
100 150
 Reading Material
100 100
 Cable
200 200
 Gardening
-- --
 Servants 250 --

 Toiletries 100 100

 Milk 1000 1300

16.) Does a rising sugar price have affected the expenditure yes yes
of your Family?

17.) Does rising Petrol expenses have affect the expenditure yes yes
of your Family?

How much does your family spend on the following?

PARTICULARS JAN-MARCH APRIL-JUNE JULY-SEPT OCT-DEC

Family A Family Family Family Family Family Family Family

 B A B A B A B

Food

 Rashan 9000 15000 9000 15000 9000 15000 11000 15000

 Gas Fuel 1200 1800 1200 1800 1200 1800 1200 2000

 Fruits, Vegetables & 1500 1200 1500 1200 1500 1200 2000 2000
Sweets

 Hotels & Restaurant

1000 600 1000 600 1000 600 1000 600

Clothes 1500 1500 1500 1500 1500 1500 5000 6000

House Expenses

 Rent 9000 -- 9000 -- 9000 -- 9000 --

 Repairs & -- 500 -- 500 -- 500 -- 5000

Maintenance

 EMI’s
-- -- -- -- -- -- -- --

Vehicle Expenses

 Petrol 1500 2500 1500 2500 1500 2500 1500 2500

 Servicing
 EMI’s

Education

 School/ College fee 15000 14000 20000 22000 15000 14000 15000 14000
 Education loan

Recreation

 Monthly movies 600 -- 600 -- 600 -- 600 --

 Parties

Medical Expenses

 Medicine -- 1000 -- 1000 -- 1000 -- 1000

 Monthly checkups

Traveling Expenses 600 1200 4000 7000 600 1200 600 1200
Tax

 Income Tax -- -- -- -- -- -- -- --
 Property Tax
 Water Tax -- -- -- -- -- -- -- --

Communication

 Landline Bill 500 700 300 600 300 600 500 1000

 Mobile Bill 900 1800 900 1500 900 1500 1200 2000

 Broadband -- -- -- -- -- -- -- --

Electricity Bills 1500 1800 1800 2000 1500 1800 2000 2200

Miscellaneous Expenses

 Beauty Saloon 300 450 300 450 300 450 300 450

 Reading Material 300 300 300 300 300 300 300 300

 Cable 600 600 600 600 600 600 600 600

 Gardening -- -- -- -- -- -- -- --

750 -- 750 -- 750 -- 1000 --

 Servants
-- -- -- -- -- -- -- --
 Toiletries
3000 4000 3000 4000 3000 4000 3500 4000
 Milk

INFERENCE
As shown in the above questionnaire it is clearly seen that family A and B belong to middle
class. Their expenditure is mainly focussed on the basic necessities like eatables, rent, petrol
etc. Both the families are getting affected by the current increase in Sugar and Petrol prices.
Family A and B both are moderately spending on the miscellaneous expenses and
concentrating on the basic entities. Family B i.e. the joint family is spending more on rashan
but on the other hand since family A is having more student members they are spending
more amount on education related expenses. Family A is also maintaining their monthly
supply of fruits and vegetables for the health purposes by spending good amount on them
as compared to family B. Family B is having some old aged members so they are spending a
fixed amount on medicines, whereas family A is having no medicine expenses in normal
circumstances.

The electricity bill is also more in family B because of more members and more usage, also
we can see that in the Diwali season the electricity bills are increased in both the families.

INCOME UPTO Rs.50000/-

Below are the basic details and their expenditure pattern of two families having income
level of upto Rs.50000 p.m.

QUESTIONNAIRE

Family A Family B

Name: Mr.Prashant Mishra

Work Profile: Self Employed -------Not Disclosed-------

Address: 184-A,Indrapuri

Contact: 9039026008

S.no Particulars Family A Family B

1.) How many members are there in your family? 5 3

2.) How many are earning members? 1 1

3.) In which slab does your family income come? Up to 50000 Up to 50000

 Upto- 25,000
 25,001-50,000
 50,001-75,000
 75,001- above

4.) How much do you spend on Food?

 Rashan
 Gas Fuel
 Fruits, Vegetables & Sweets
 Hotels & Restaurants

5.) How much do you spend on Clothes?

6.) How much do you spend on House Expenses?

 Rent
 Repairs & Maintenance
 EMI’s

7.) How much do you spend on Vehicle Expenses?

 Petrol 5000
 Servicing
 EMI’s 1000

8.) How much do you spend on Education?

 School/ College Fee

 Education Loan

9.) How much do you spend on Recreation?

 Movies 500
 Parties
1000

10.) How much do you spend on Medical Expenses?

 Medicine 500
 Monthly Checkups
11.) How much is your Traveling Expenses? 2000

12.) How much Tax you pay in a year?

 Income Tax
 Property Tax
 Water Tax 2600

1440

13.) How much do you spend on Communication?

 Landline Bill 1000

 Mobile Bill
 Broad band 1000

14.) Approximately how much you pay on Electricity? 1500

15.) How much approximately you pay on Miscellaneous

Expenses?

 Beauty Saloon
 Reading Material
 Cable
 Gardening
 Servants
 Toiletries

16.) Does a rising sugar price have affected the expenditure NO

of your Family?

17.) Does rising Petrol expenses have affect the expenditure NO

of your Family?

How much does your family spend on the following?

PARTICULARS JAN-MARCH APRIL-JUNE JULY-SEPT OCT-DEC

 Family A Family Family Family Family Family Family A Family
B B B B
A A

Food

 Rashan 15000/- 15000/- 15000/- 15000/-

 Gas Fuel
 Fruits, Vegetables & 2000/- 2000/- 2000/- 2000/-
Sweets
 Hotels & Restaurant

3000/- 3000/- 3000/- 4000/-

500/- 500/- 1500/- 1000/-

Clothes 1000/- 1000/- 2500/- 2000/-

House Expenses

 Rent
 Repairs &
Maintenance
 EMI’s

Vehicle Expenses

 Petrol 15000/- 15000/- 15000/- 15000/-

 Servicing
 EMI’s 3000/- 3000/- 3000/- 3000/-

Education

 School/ College fee 1000/- 1000/- 1000/- 1000/-

 Education loan

Recreation

 Monthly movies 500/- 500/- 500/- 500/-

 Parties
500/- 500/- 500/- 500/-

Medical Expenses

 Medicine
 Monthly checkups
Traveling Expenses

Tax

 Income Tax
 Property Tax
 Water Tax

Communication

 Landline Bill
 Mobile Bill
 Broadband

Electricity Bills

Miscellaneous Expenses

 Beauty Saloon
 Reading Material
 Cable
 Gardening
 Servants
 Toiletries

INFERENCE
INCOME UPTO Rs.75000/-

INFERENCE
 INCOME ABOVE Rs.75000/-

QUESTIONNAIRE

Family A Family B

Name: D.K. Kaushal B.C. Mittal

Work Profile: AGM (Admn/Trg.) Trading Business

Address: B-98 Indrapuri, BHEL B-101 Indrapuri, BHEL

Contact:

S.no Particulars Family A Family B

1.) How many members are there in your family? 3 9

2.) How many are earning members? 2 3

3.) In which slab does your family income come?

 Upto- 25,000
 25,001-50,000
 50,001-75,000
 75,001- above

75,001-above 75,001-
above

4.) How much do you spend on Food?

 Rashan 3500 8000

 Gas Fuel
 Fruits, Vegetables & Sweets 500 500
 Hotels & Restaurants
1500 2500

1000 3000

5.) How much do you spend on Clothes? 2000 2500

6.) How much do you spend on House Expenses?

 Rent -- --
 Repairs & Maintenance
  EMI’s -- 500

-- --

7.) How much do you spend on Vehicle Expenses?

 Petrol 3000 4000

 Servicing
 EMI’s

8.) How much do you spend on Education?

 School/ College Fee 8000 6000

 Education Loan

9.) How much do you spend on Recreation?

 Movies 500 500

 Parties
2000 --

10.) How much do you spend on Medical Expenses?

 Medicine -- 2000
 Monthly Checkups

11.) How much is your Traveling Expenses? -- 3000

12.) How much Tax you pay in a year?

 Income Tax --
 Property Tax
 Water Tax --

-- --

13.) How much do you spend on Communication?

 Landline Bill 200 500

 Mobile Bill
 Broad band 1500 2000

1000 500

14.) Approximately how much you pay on Electricity? 2500 3500

15.) How much approximately you pay on Miscellaneous
Expenses?

 Milk
1000 2000
 Beauty Saloon
1500 500
 Reading Material
300 200
 Cable
200 300
 Gardening 200 200

 Servants 5000 2000

 Toiletries 300 200

16.) Does a rising sugar price have affected the expenditure NO NO

of your Family?

17.) Does rising Petrol expenses have affect the expenditure NO YES
of your Family?

How much does your family spend on the following?

PARTICULARS JAN-MARCH APRIL-JUNE JULY-SEPT OCT-DEC

Family A Family Family Family Family Family Family Family

B A B A B A B

Food

 Rashan 10000 30000 10000 25000 10000 25000 30000 40000

 Gas Fuel 1000 1500 1000 1500 1000 1500 1500 3000

 Fruits, Vegetables & 5000 8000 10000 8000 5000 8000 7000 10000
Sweets

 Hotels & Restaurant

 10000 4000 10000 15000 3000 5000 3000 5000

Clothes 10000 5000 15000 20000 2000 2000 10000 20000

House Expenses

 Rent -- -- -- -- -- -- -- --
 Repairs &
Maintenance -- 1000 -- 1000 -- 1000 50000 25000
 EMI’s

Vehicle Expenses

 Petrol 10000 15000 10000 10000 15000 15000 12000 15000

 Servicing
 EMI’s

Education

 School/ College fee 25000 20000 25000 30000 25000 20000 25000 20000
 Education loan

Recreation

 Monthly movies 1500 2000 1500 1500 1500 1500 1500 1500
 Parties

Medical Expenses

 Medicine -- 6000 -- 8000 -- 6000 -- 6000

 Monthly checkups

Traveling Expenses -- 9000 -- 9000 -- 9000 -- 9000

Tax

 Income Tax -- -- -- -- -- -- -- --
 Property Tax
 Water Tax -- -- -- -- -- -- -- --
Communication

 Landline Bill 600 2000 600 1500 600 1500 1000 2500

 Mobile Bill 5000 7000 5000 6000 5000 6000 5000 7000

 Broadband 3000 1500 3000 1500 3000 1500 3000 1500

Electricity Bills 7500 10000 7500 10000 7500 10000 8500 12000

Miscellaneous Expenses

 Beauty Saloon 4500 1500 4500 1500 4500 1500 4500 1500

 Reading Material 1000 600 1000 600 1000 600 1000 600
 Cable
600 900 600 900 600 900 600 900
 Gardening
600 600 600 600 600 600 600 600
 Servants
15000 7000 15000 6000 15000 6000 20000 6000
 Toiletries
900 600 900 600 900 600 900 600
 Milk 4000 6000 3000 6000 3000 6000 3000 6000