Question

Based on the Tendulkar committee, the National poverty line was defined as which of the following? i. ₹816 per capita per month for rural areas ii. ₹1,000 per capita per month for urban areas.

• A. Only ii is correct
• B. Both i and ii are correct
• C. Both i and ii are incorrect
• D. Only i is correct

Answer 1

Answer:

B. Both i and ii are correct

Tendulkar Committee and Poverty Line Estimation

• The Tendulkar Committee, officially known as the Rangarajan Committee, was established in 2005 to review poverty estimation in India. It submitted its report in 2009.
• The committee adopted a Uniform Poverty Line (UPL) approach based on a fixed consumption basket.
• This basket was derived from the observed consumption pattern of households corresponding to the 30th round (1973-74) of the National Sample Survey Organisation (NSSO) data.
• Key Poverty Line Figures (Tendulkar Methodology):
  • For rural areas, the poverty line was set at ₹816 per capita per month.
  • For urban areas, the poverty line was set at ₹1,000 per capita per month.
• These figures represented the minimum expenditure needed to meet basic needs, including food and non-food items.
• The Tendulkar Committee's methodology was a departure from previous methods, aiming for a more standardized approach to poverty measurement.
• It is important to note that subsequent committees, such as the Rangarajan Committee (2014), have proposed different poverty line estimates.

Background Information

• Poverty estimation in India has evolved over time, with various committees tasked with refining the methodology.
• The NSSO conducts large-scale sample surveys on household consumption, expenditure, and other socio-economic parameters, which form the basis for these estimations.
• The definition of poverty lines is crucial for policy formulation, resource allocation, and assessing the effectiveness of poverty alleviation programs.