Which of the following methods has/have been used to estimate poverty in India?
Head Count Ratio
Calorie Intake
Household Consumption Expenditure
Per Capita Income
Select the correct answer from the codes given below.
Codes:
Correct Answer:
(B) 1, 2 and 3
At present Household Consumption Expenditure method is used to estimate poverty in India. The current methodology for poverty estimation is based on the recommendations of an Expert Group (Tendulkar Committee), which was constituted in 2005 and submitted its report in 2009. Expenditure on food (for sufficient Calorie Intake) is a main sub-set of household consumption expenditure, besides the spending on health and education under the methodology recommended by the Tendulkar Committee. The Head Count Ratio (HCR) is the population proportion that exists, or lives, below the poverty threshold. In India, the HCR is obtained using urban and rural poverty lines which are applied on the MPCE distribution of the States. The aggregated BPL population of the States is used to obtain the final all-India HCR and poverty lines in urban and rural areas. Hence, option (b) is the correct answer.
Ques: 2
The basis of poverty estimates in India is:
Correct Answer:
(C) Household consumption expenditure
Poverty line estimation in India has been based on the consumption expenditure and not on the income levels due to difficulties in assessing incomes of self-employed people, daily wage labourers, large fluctuation in income due to seasonal factors, additional side incomes as well as data collection difficulties in largely rural and informal economy of India. Since households may be able to access credit markets or household savings and thereby smooth their consumption to some degree, consumption expenditures may be able to provide a better basis for determining a household’s actual standard of living. Hence, most of the Poverty Estimation Committees proposed that per capita consumption expenditure or household expenses were the right statistical choice for calculating poverty in India. Incidence of poverty is estimated by the Planning Commission (now NITI Aayog) on the basis of large sample surveys on household consumer expenditure conducted by the NSSO (now NSO)
Ques: 3
Which method is not used to decide the poverty line?
Correct Answer:
(D)
Literacy
Literacy is not used to estimate the poverty line. Other options given in the question are used in various contexts to determine the poverty line.
Ques: 4
In a given year in India, official poverty lines are higher in some States than in others because
Correct Answer:
(B) Price levels vary from State to State
Suresh Tendulkar Committee computed new poverty lines for rural and urban areas of each State based on the uniform poverty line consumption basket. These poverty lines would vary from State to State because of inter-state price differentials of consumer goods and services included in the poverty line basket. Hence, in a given year in India, official poverty lines are higher in some State than in others because price levels vary from State to State.
Ques: 5
Which of the following fixes the poverty line in India?
Correct Answer:
(D)
Planning Commission (Now Niti Aayog)
Planning Commission was the nodal agency for determining the poverty line at National and State levels in India. From 1 January, 2015 NITI Aayog replaced the Planning Commission and now it is the nodal agency for fixing the poverty line in India.
Ques: 6
Which among the following committee’s recommendations are used for estimating the poverty line in India?
Correct Answer:
(B) Lakdawala Committee
The estimation of poverty at the National and State level had been done by the erstwhile Planning Commission since the 6th five-year plan. In India, for the determination of poverty level and determination of methodology of poverty, various committees have been constituted from time to time. The important committees (and year of report) are Alagh Committee (1979), Lakadawala Committee (1993), Tendulkar Committee (2009) and C. Rangarajan Committee (2014) etc.
Ques: 7
Which of the following committees was set up in India for identification of BPL families in Urban Areas?
Correct Answer:
(D)
Hashim Committee
The Planning Commission constituted an Expert Group in 2010 under the Chairmanship of Prof. S.R. Hashim for identification of BPL (Below Poverty Line) households in urban areas based on a threefold methodology of residential, social and occupational vulnerabilities.
Ques: 8
Which one of the following indices is most suitable to assess the intensity of poverty in India?
Correct Answer:
(D)
Multi-dimensional Poverty Index
In developing countries like India, the Multi-dimensional Poverty Index (MPI) is the best suitable measure to assess the intensity of poverty. MPI uses health, education and standard of living indicators to determine the degree of poverty experienced by a population. MPI was first time included in the 2010 Human Development Report.