OFFICIAL STATISTICS SPECIALLY DESIGNED FOR INDIAN STATISTICAL SERVICE (ISS) AND OTHER GOVERNMENT & PRIVATE SECTOR STATISTICAL EXAMINATIONS
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Household debt and financial inclusion statistics describe access to financial services and the liabilities households carry. They combine household survey information with administrative and financial-system data.
1. What is household indebtedness?
Household indebtedness refers to the liabilities owed by households under the defined statistical coverage. Measures may include the share of indebted households, average debt, debt per household or debt relative to income or expenditure.
ISS questions on official statistics often test definitions, statistical units, denominators, rates, index concepts and interpretation of published data. Focus on the exact meaning of each indicator before applying a formula.
2. Debt incidence and debt intensity
The incidence of indebtedness measures how many households have debt, while debt intensity measures the amount owed among households or relative to a denominator. These concepts answer different questions and should not be conflated.
Share of households classified as indebted.
Outstanding liabilities measured under the defined concept.
Ability to obtain a financial service under the specified measure.
Actual use of the available financial service.
3. Financial inclusion indicators
Financial inclusion can be measured through access, usage and quality or suitability of financial services. Indicators may include account ownership, credit access, insurance coverage, digital payments and use of formal financial institutions.
Always identify the numerator, denominator, reference period and unit before calculating an official-statistics indicator. In descriptive answers, define the measure first and then discuss uses and limitations.
4. Household surveys and administrative records
Surveys can collect household-level borrowing and financial access information, while administrative records capture transactions or accounts within reporting systems. Differences in units, coverage and definitions affect comparability.
5. Statistical interpretation
Debt ratios require an appropriate denominator and reference period. A rise in total household debt can occur because of population growth, more borrowing households, larger loans or price and income changes, so decomposition is useful.
7. Three important questions
Try each one on your own first, then tap the answer.
What is the difference between debt incidence and debt intensity?
Show answer
Incidence measures the share of households with debt, while intensity describes the amount of debt among the relevant households or relative to a chosen denominator.
Out of 5,000 households, 1,250 report outstanding debt. Calculate indebtedness incidence.
Show answer
1,250/5,000 × 100 = 25%.
Explain why household debt statistics should be read with their denominator and reference period.
Show answer
Debt per household, debt-to-income and total debt measure different concepts; the period also determines whether the measure refers to a stock or a flow.
Key takeaways
- Debt incidence and debt intensity measure different dimensions.
- Financial inclusion includes access as well as actual usage.
- Survey and administrative sources have different coverage and units.
- Debt statistics need a clearly defined denominator and reference period.
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- Indian official statistical system: MoSPI, NSO, NSC and the data they produce
- National accounts, GDP, IIP, price indices and labour statistics
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- Written specially for the ISS exam, and useful for other government and private sector statistical exams
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Official Statistics for ISS and other Government & Private Sector Statistical Examinations