Expenditure (2)

You want a comprehensive understanding of household expenditures and how they prioritize consumption, including total expenditure and spending by category. Categories/types of expenditure can correspond with different sectors. You want to understand the extent to which total reported spending aligns with the MEB as an indication of potential gaps in needs being addressed, and to assess the ongoing accuracy of the MEB. You want to be able to analyse expenditures relating to a specific sector or sectors, for comparison with MEB composition, and potentially to inform programming decisions, for example if unmet needs are identified.

See the link below for in-depth guidance under 'Immediate outcomes: expenditure and decision making' chapter.

Expenditure indicators lends from monetary poverty analysis and provide useful cross-cutting and sector specific insights into household consumption and wellbeing. However, the process of collecting and analysing household expenditure indicators is relatively heavier and more labour-intensive than other types of indicators. In some contexts, collecting expenditure data might not be feasible or appropriate, or the challenges with obtaining accurate data might outweigh the benefits of the analysis (for more on this, see the link below – General Guidance and Issues to Consider).

To calculate the expenditure indicators suggested in this document, an updated and relevant MEB needs to be in place for the intervention location(s).