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Abstract

Income-expenditure and investment-disinvestment behaviour of different groups of households in a small rural community of Bangladesh has been investigated by cash flow approach. Both cash inflows and outflows of rich and middle households were much higher than those of poor and landless. The latter two groups were heavily dependent on disinvestment of assets, loans and gifts for their survival. Although they spent most of the income for consumption, particularly for foodgrain, their level of consumption was very low. While the poor and landless households felt the need for credit throughout the whole year, the rich and middle households felt that need seasonally, particularly in hero season. To reduce rural poverty, credit programmes for the rural poor should be designed for both on-farm and off-farm activities.

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