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Poverty Measurement UPSC NOTE

 Issue of poverty measurement in India

  • We still do not have an official poverty line that goes beyond recommendations of a panel led by the late statistician Suresh Tendulkar, Prime Minister’s Economic Advisory Council (PMEAC) chairman Bibek Debroy said

  • The panel had in 2009 pegged India’s poverty line at an expenditure level of ₹33 a day in urban areas and ₹27 a day in rural areas

  • PMEAC chief pitches for a review of India’s official poverty line; asserts that the Niti Aayog’s Multidimensional Poverty Index ‘is not a poverty line’

  • Bibek Debroy said at a data user conference on the Household Consumption Expenditure Survey (HCES) 2022-23 hosted by the Ministry of Statistics and Programme Implementation (MoSPI) that there were some “standard perennial issues” with household expenditure surveys

  • One of those is the aggregate of consumption expenditure and the gap between that and the consumption expenditure as defined by national income accounts

  • That’s an issue that plagues every country

Challenges in Poverty Measurement

  • The many problems of poverty arise from the fact that the subject of enquiry is multi-dimensional, which not only considers the absolute but also the relative positions of its subjects vis-a-vis societal norms, and in relation to other people's levels.

  • There are, therefore, conceptual issues of who is poor and by what standard, which present relativity problems; identification issues and what tools to use in measuring poverty in both relative and absolute terms; and aggregation problems, i.e., the size and extent of poverty. 

  • Here the problem arises on whether one should consider the number of the poor or the income shortfall, i.e., the poverty gap or the distribution of income among the poor

  • Lastly, there are data constraints



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Learnerz IAS | Concept oriented UPSC Classes in Malayalam: Poverty Measurement UPSC NOTE
Poverty Measurement UPSC NOTE
Learnerz IAS | Concept oriented UPSC Classes in Malayalam
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