Income inequality among people earning up to Rs 5 lakh annually has reduced by 74.2 percent in 10 years between 2013-14 and 2022-23. This shows that the government’s efforts are reaching the bottom of the economic pyramid. Due to this, the income of the people of the lower income group is increasing.
The SBI report released on Friday said that a comparative study of income inequality during the assessment years 2014-15 and 2023-24 shows that the income distribution curve has tilted to the right. This means that people of the lower income group are increasing their earnings in proportion to their share in the population. To clarify the ‘much-publicized myth of worsening inequality’ in the country, the Economic Department of SBI has analyzed the trends of income inequality.
Rapid increase in income of lower class
The share of people earning up to Rs 3.5 lakh in income inequality was 31.8 per cent in FY 2013-14, which decreased to 12.8 per cent in 2020-21. The income share of this group has grown 19 per cent faster than their population.
The lower income group (income less than Rs 5.5 lakh) has registered positive growth rate during the entire period of study in the last decade.
UP’s share in filing returns increased rapidly
The report said that states like Maharashtra, Delhi, Gujarat and Karnataka, which are leading in income tax base, are reaching close to the highest level in filing income tax returns. Their share in the total tax base is decreasing. Uttar Pradesh’s share in filing returns has increased rapidly. It is followed by Bihar, Andhra Pradesh, Punjab and Rajasthan.
