[Economic Survey] Ch13: Poverty Line Estimation- Tendulkar vs Rangarajan, Engel’s Law, MNREGA, Aajeevikaa, Urban LivelihoodDevendra Vishwakarma
- Poverty line
- Tendu Leopard vs Ranga Khush
- Urban Poverty line
- Rural Poverty line
- Why Ranga NAA-KHUSH (unhappy)?
- How is 100 million poors increased?
- Calorie Expenditure
- Engel’s law & MPCE
- Centrally sponsored schemes (CSS)
- CSS classification
- Poverty removal schemes
- Scheme#1: MNREGA Act 2005
- MNREGA performance
- MNREGA Reforms already taken
- MNREGA: Economic Survey observations
- Scheme #2: NRLM / Aajeevika
- Scheme #3: National Urban Livelihood mission
- Scheme#1: MNREGA Act 2005
links will be updated once I finish last (first) part on UNDP HDI-2014 report.
Q. Who decides Poverty line?
Q. How does it decide poverty line?
- Monthly per capita Expenditure.
- Suresh Tendulkar designed its Formula.
Q. Who provides the data of monthly Expenditure?
- NSSO- National sample survey organization
- under Ministry of Statistics and Programme Implementation
|Area||Monthly Expenditure per person (Rs.)|
According to Tendulkar formula, poverty has declined, as seen in following graph:
Time for stupid census ranking:
|Highest rural poverty||Lowest poverty|
|highest rural unemployment||highest urban unemployment|
….lowest in Gujarat (3/1000)
….lowest in Gujarat (34/1000)
Tendu Leopard vs Ranga Khush
Earlier Committees: Alagh ’77, Lakdawala ’89
|Set up by||Planning commission||Planning commission|
|Set up in||2005||2012, May|
|Submitted report||2009||2014, July|
|Poverty estimation method||Monthly per CAPITA Expenditure.||Monthly Expenditure of family of five.|
Urban Poverty line
|Urban poverty line (Rs)||Tendulkar||C.Rangarajan|
|per day per person||33||46.90=~47|
|per person per month||1000*||1407|
|per family of five, per month||5000||7035|
*this is their official recommendation. Rest numbers are “derived”.
Rural Poverty line
|Rural poverty line (Rs)||Tendulkar||C.Rangarajan|
|per day per person||27||32|
|per person per month||816*||972|
|per family of five, per month||4080||4860*|
*these are the official numbers recommended by them. Remaining figures are derived.
Why Ranga NAA-KHUSH (unhappy)?
Q. Why is Ranga unhappy with journalists and politicians? Inform “the nation” in 200 words.
- C. Rangarajan has received lot of negative publicity because:
- He kept poverty line to be ridiculously low – Rs.32 for rural and Rs.47 for Urban.
- Therefore He is insensitive towards the poor.
- But Ranga never gave those daily numbers. He had given combined poverty line for a family of five members- Rs.7035 (Urban), which is a plausible number. After all, if you live in a family of five, then some costs will get reduced per head (e.g. rent, lightbill, LPG etc.)
- Besides, if a family spending >7000 per month = their income would be definitely above 7000. So in reality, Ranga has not “insulted” the poor. Infact, He has tried to cover more poor under BPL & Sarkaari schemes.
- Media has derived those “insensitive” daily Expenditure figures (Rs.33, Rs.47) by dividing the monthly Expenditure of five people, then further dividing that number by 30.
- If you objectively convert Ranga’s poverty line into purchasing power parity (PPP), it’s $2.44 per person, per day. And that figure even higher than World bank estimate. In other words, Ranga included more poor in BPL, than even World bank would!
- Thus, journalists and politicians have misinterpreted the poverty line issue- just like they misinterpreted Anti-CSAT movement to be against those 8 easy English MCQs above Decision Making section!
How is 100 million poors increased?
Since Ranga raised poverty line, obviously more people would become “below poverty line”.