June 28, 2014

What is the Estimation of the Official Poverty Line in India in 2014


I was surfing internet to get some data about the official poverty line in India and i got some websites and i was unable to find out the clear cut amount in a day in rural areas and urban areas. If anybody knows about it then they could kindly clarify it for me. I will list out the websites i refereed.


I went to http://planningcommission.nic.in/news/index.php?news=prbody.htm and got this press release http://planningcommission.nic.in/news/press_elepov2103.pdf which shows that "The Tendulkar poverty line is defined in terms of per capita consumption expenditure on a monthly basis. It can be also converted into a corresponding consumer budget per month for a family of five" and the the family based poverty lines per month in India based on the 2009-10 National Sample Survey is 3,364 rs in rural areas and 4,298 rs in urban areas. So it will like 112.13 in rural and 143.26 in urban per day for a family of five. So it will be 22rs per day per a family member in rural area and 29 rs in urban areas.

It was 2,234rs in rural areas and 2,894  rs in urban areas based on the 2004-05 National Sample Survey.


Then i got Poverty Estimation Guide which says that ", data from the 2009-10 survey has not been used in the official estimates of poverty as there was a severe drought in that year. The NSSO felt that this would introduce an aberration in the results, and decided to repeat the survey in 2011-12. " So i read the article and the article suggest that the National poverty estimates (% below poverty line) are 25.7%  in rural areas and 13.7%  in urban areas with a total of 21.9%. The article says that the methodology of finding these results were based on report of the Expert Group to Review the Methodology for Estimation of Poverty (Tendulkar Committee) established in 2005 by the planning commission.

So i searched for the 2011-12 report on official poverty line by planning commission and it was estimated at Rs. 816 per capita per month in rural areas and Rs. 1,000 per capita per month in urban areas which is 27.2rs in rural area and 33.33rs in urban areas when divided with 30 days.


Then got this statement " the new poverty line happens to be close to, but less than, the 2005 PPP $1.25 per day poverty norm used by the World Bank in its latest world poverty estimates." from http://planningcommission.nic.in/reports/genrep/rep_pov.pdf .

I think in 2014, still the 2011-2012 report of Tendulkar committe is in place.