Household Sector Savings Up 43% In 1996-97

Gross domestic savings by the household sector grew by a record 43 per cent in 1996-97, according to figures released by the Central Statistical Organisation here yesterday.

GDS at current prices during the year amounted to Rs 333816 crore as against Rs 283,003 crore in 1995-96. This comprised 26.1 per cent of the gross domestic product at market prices as against 25.3 per cent in the previous year.

The rise in the GDS has been contributed by the institutional sectors, household and private corporate.

On the other hand there has been marginal fall in the savings of the public sector

 

In the household sector both the financial savings and the physical savings went up in 1996-97 from Rs 95,715 crore to Rs 136,644 crore and from Rs 114,702 crore to Rs 12,899 crore respectively, the figures revealed.

Savings of private corporate sector went up by 4.5 per cent from Rs 47,391 crore in 1995-96 to Rs 49,545 crore in 1996-97. The savings of the public sector showed a decline of 1.9 per cent from Rs 25,195 crore in 1995-96 to Rs 24,728 crore in 1996-97.

The decrease in the public sector savings is attributed to the increase in the dissavings of the governments administrative departments from Rs 22,774 crore in 1995-96 to Rs 27,498 crore in 1996-97.

The net domestic savings has correspondingly gone from Rs 171,417 crore in 1995-96 to Rs 206,634 crore in 1996-97 and comprised 18 per cent of the net domestic product as against 17 per cent in the previous year.

As in the case of the gross savings , the net saving of the household sector has also gone up by 25.9 per cent from 172,953 crore in 1995-96 to Rs 217,810 crore in 1996-97.

However the net savings of the private corporate sector declined by 17.1 per cent from Rs 21,193 crore in 1995-96 to Rs 17,573 crore in 1996-97 . The net dissaving of the public sector increased from 26.5 per cent from 22,729 crore in 1995-96 to Rs 28,749 crore.