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Poverty & Unemployment (Part – II)

📆 October 19, 2024

Total Questions: 54

31. Which of the following committee is related to the estimation of poverty in India? [R.A.S./R.T.S.(Pre) 2013]

Correct Answer: (e) Both Suresh Tendulkar Committee and Lakdawala Committee
Solution:Suresh Tendulkar Committee and Lakdawala Committee both are related to the estimation of poverty in India. Therefore, option (b) and (d) both are correct.

The minimum expenditure (or income) required to purchase a basket of goods and services necessary to satisfy basic human needs is called the poverty line.
Poverty line estimation in India has been based on the consumption expenditure and not on the income levels due to difficulties in assessing incomes rural and informal economy of India.
The basket of goods and services necessary to satisfy basic human needs is the Poverty Line Basket (PLB).

32. Which among the following committee's recommendations are used for estimating the poverty line in India? [U.P. Lower Sub. (Pre) 2013]

Correct Answer: (b) Lakdawala Committee
Solution: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 committies have been constituted from time to time. The important committies (and year of report) are Alagh Committee (1979), Lakdawala Committee (1993), Tendulkar Committee (2009) and C. Rangarajan Committee (2014) etc.

33. Which of the following committees was set up in India for identification of BPL families in Urban Areas? [U.P.P.C.S. (Pre) 2018]

Correct Answer: (d) Hashim Committee
Solution: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.

Recommendations of the Committee

  • Automatic Exclusion
  • Automatic Inclusion
  • Scoring Index: remaining households will be assigned scores from 0 to 12 based on various indicators. They should be considered eligible for inclusion in the BPL List in the increasing order of higher scores.

34. Consider the following statements: [U.P. Lower Sub. (Pre) 1998]

Assertion (A): There is a need to consider the people below poverty line as an identified group.

Reason (R): It facilitates targeting of program agencies.

With reference to the above, which one of the following is the correct answer:

 

Correct Answer: (a) A and R both arnd R is the correct explanation of A.
Solution:Assertion and Reason both are true and R is the correct explanation of A.

The minimum expenditure (or income) required to purchase a basket of goods and services necessary to satisfy basic human needs is called the poverty line.
Poverty line estimation in India has been based on the consumption expenditure and not on the income levels due to difficulties in assessing incomes rural and informal economy of India.
The basket of goods and services necessary to satisfy basic human needs is the Poverty Line Basket (PLB).

35. Consider the following statements: [U.P.U.D.A./L.D.A. (Pre) 2010]

Assertion (A): In India both rich and poor are malnourished.

Reason (R): Rich eat wrong diet and the poor eat poor diet.

Select the correct answer from the code given below:

Code:

Correct Answer: (a) Both (A) and (R) are true, and (R) is the correct explanation of (A)
Solution:In India both rich and poor are malnourished. Poor have limited alternatives to obtain nutrition and their diet often lacks in both quality and quantity, while, rich are used to take over-consumption or unhealthy food. Therefore, in India in reference to malnutrition both assertion and reason are true and reason is the correct explanation of assertion.

36. Tendulkar Committee has estimated that in India the percentage of the population below poverty line is: [U.P. P.C.S. (Pre) 2012, U.P.U.D.A./L.D.A. (Pre) 2013]

Correct Answer: (b) 37.2
Solution:Tendulkar Committee in the year 2004-05 had estimated that 37.2 percentage of the population was below poverty line in India. According to the data released by the Planning Commission in July 2013, the poverty rate in the year 2011-12 (as per the Tendulkar methodology) was 21.9 percent.

Poverty estimation in India has evolved in the following ways:

  • In the pre-independent era, Dadabhai Naoroji, in his "Poverty and the Un-British Rule in India" was among the first to estimate poverty in India linked to British rule.
  • Later, the National Planning Committee(1938) and the Bombay Plan (1944) formulated their respective poverty lines.
  • The Alagh Committee (1979) developed a poverty line for rural and urban areas based on nutritional requirements. Also, DT Lakdawala (1993) suggested calculating consumption expenditure based on calorie consumption and constructing state-specific poverty lines that could be regularly updated.
  • Tendulkar Committee (2009): The Tendulkar Committee recommended changing monthly household consumption into consumption expenditure per person per day. The national poverty line for 2011-12 was estimated at Rs. 816 per capita per month for rural areas and Rs. 1,000 per capita per month for urban areas
  • Rangarajan Committee (2014): It recommended separate consumption baskets for rural and urban areas which include food items that ensure recommended calorie, protein & fat intake and non-food items like clothing, education, health, housing and transport. It recommended monthly per capita consumption expenditure of Rs. 972 in rural areas and Rs. 1407 in urban areas as the poverty line.

37. Estimated percentage of persons below the poverty line in 2011-12 by Tendulkar method using mixed reference period in India is: [R.A.S./R.T.S. (Pre) 2013]

Correct Answer: (c) 21.9
Solution:Tendulkar Committee in the year 2004-05 had estimated that 37.2 percentage of the population was below poverty line in India. According to the data released by the Planning Commission in July 2013, the poverty rate in the year 2011-12 (as per the Tendulkar methodology) was 21.9 percent.

Poverty estimation in India has evolved in the following ways:

  • In the pre-independent era, Dadabhai Naoroji, in his "Poverty and the Un-British Rule in India" was among the first to estimate poverty in India linked to British rule.
  • Later, the National Planning Committee(1938) and the Bombay Plan (1944) formulated their respective poverty lines.
  • The Alagh Committee (1979) developed a poverty line for rural and urban areas based on nutritional requirements. Also, DT Lakdawala (1993) suggested calculating consumption expenditure based on calorie consumption and constructing state-specific poverty lines that could be regularly updated.
  • Tendulkar Committee (2009): The Tendulkar Committee recommended changing monthly household consumption into consumption expenditure per person per day. The national poverty line for 2011-12 was estimated at Rs. 816 per capita per month for rural areas and Rs. 1,000 per capita per month for urban areas
  • Rangarajan Committee (2014): It recommended separate consumption baskets for rural and urban areas which include food items that ensure recommended calorie, protein & fat intake and non-food items like clothing, education, health, housing and transport. It recommended monthly per capita consumption expenditure of Rs. 972 in rural areas and Rs. 1407 in urban areas as the poverty line.

38. According to the data released by the Planning Commission in April 2011, poverty in India in 2009-10 has declined to: [U.P.P.C.S. (Mains) 2011]

Correct Answer: (a) 30%
Solution:As per the data released on 19th March, 2012 (not in April, 2011) by the Planning Commission, the all-India poverty percentage (HCR) (based on Mixed Recall Period) had declined by 7.3 percentage points from 37.2% in 2004-05 to 29.8% in 2009-10. The Planning Commission's estimates of poverty were based on methodology recommended by the Tendulkar Committee, which includes spending on health and education, besides the calorie intake. According to new data released by the Planning Commission in July 2013, based on Tendulkar methodology, the percentage of poverty was 21.9 in the year 2011-12.

As per NITI Aayog's Report 'National Multidimensional Poverty Index: A Progress Review 2023' (released in July, 2023), proportion of population in multidimensional poverty (Multidimensional Poverty Headcount Ratio) in India declined from 24.85% to 14.96% between 2015-16 and 2019-21.

According to NITI Aayog's Discussion Paper 'Multidimensional Poverty in India since 2005-06' (released in January, 2024), a steep decline in multidimensional poverty headcount ratio in India is estimated from 29.17% in 2013-14 to 11.28% in 2022-23.

39. Poverty in India 5 year ago was stated to be 37.2 percent. According to data released by the Planning Commission in April 2011 poverty in India in 2009-10 has declined to [U.P.P.C.S. (Mains) 2011]

Correct Answer: (a) 30%
Solution:As per the data released on 19th March, 2012 (not in April, 2011) by the Planning Commission, the all-India poverty percentage (HCR) (based on Mixed Recall Period) had declined by 7.3 percentage points from 37.2% in 2004-05 to 29.8% in 2009-10. The Planning Commission's estimates of poverty were based on methodology recommended by the Tendulkar Committee, which includes spending on health and education, besides the calorie intake. According to new data released by the Planning Commission in July 2013, based on Tendulkar methodology, the percentage of poverty was 21.9 in the year 2011-12.

As per NITI Aayog's Report 'National Multidimensional Poverty Index: A Progress Review 2023' (released in July, 2023), proportion of population in multidimensional poverty (Multidimensional Poverty Headcount Ratio) in India declined from 24.85% to 14.96% between 2015-16 and 2019-21.

According to NITI Aayog's Discussion Paper 'Multidimensional Poverty in India since 2005-06' (released in January, 2024), a steep decline in multidimensional poverty headcount ratio in India is estimated from 29.17% in 2013-14 to 11.28% in 2022-23.

40. What percentage of people in India live below the poverty line? [M.P.P.C.S. (Pre) 2010]

Correct Answer: (d) 27.5 percent
Solution:As per the earlier estimates (based on Uniform Recall Period) of the Planning Commission for the year 2004-05, 27.5 percent of the people in India live below the poverty line. For the updated poverty data for 2009-10 and 2011-12 (released in March, 2012 and July, 2013 on the basis of Tendulkar Methodology), As per the data released on 19th March, 2012 (not in April, 2011) by the Planning Commission, the all-India poverty percentage (HCR) (based on Mixed Recall Period) had declined by 7.3 percentage points from 37.2% in 2004-05 to 29.8% in 2009-10. The Planning Commission's estimates of poverty were based on methodology recommended by the Tendulkar Committee, which includes spending on health and education, besides the calorie intake. According to new data released by the Planning Commission in July 2013, based on Tendulkar methodology, the percentage of poverty was 21.9 in the year 2011-12.

As per NITI Aayog's Report 'National Multidimensional Poverty Index: A Progress Review 2023' (released in July, 2023), proportion of population in multidimensional poverty (Multidimensional Poverty Headcount Ratio) in India declined from 24.85% to 14.96% between 2015-16 and 2019-21.

According to NITI Aayog's Discussion Paper 'Multidimensional Poverty in India since 2005-06' (released in January, 2024), a steep decline in multidimensional poverty headcount ratio in India is estimated from 29.17% in 2013-14 to 11.28% in 2022-23.

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