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Which of the conclusions obtained from poverty ratios calculated for Rajasthan according to Suresh Tendulkar method is/are correct? i) Poverty ratio in rural areas of the State has increased by 10.3 percent between 2009-10 and 2011-12. ii) Poverty ratio in urban areas of the State has declined by 9.2 percent between 2009-10 and 2011-12. iii) Poverty ratios in the State have declined in both the years 2000-10 aid 2011-12 compared to India. iv) Poverty ratio in 2011-12 was estimated 14.7 percent for Rajasthan and 21.9 percent for India.

Which of the conclusions obtained from poverty ratios calculated for Rajasthan according to Suresh Tendulkar method is/are correct? i) Poverty ratio in rural areas of the State has increased by 10.3 percent between 2009-10 and 2011-12. ii) Poverty ratio in urban areas of the State has declined by 9.2 percent between 2009-10 and 2011-12. iii) Poverty ratios in the State have declined in both the years 2000-10 aid 2011-12 compared to India. iv) Poverty ratio in 2011-12 was estimated 14.7 percent for Rajasthan and 21.9 percent for India. Correct Answer ii, iii and iv

The correct answer is ii, iii and iv.

Key Points

  • In 2005, the Planning Commission constituted an expert group chaired by Suresh Tendulkar to review methodology for poverty estimation.
  • The committee was given the task to address the following three shortcomings of the previous methods-
    • Consumption patterns were linked to the 1973-74 Poverty Line Baskets (PLBs) of goods and services, whereas there were significant changes in the consumption patterns of the poor since that time, which were not reflected in the poverty estimates
    • There were issues with the adjustment of prices for inflation, both spatially (across regions) and temporally (across time)
    • Earlier poverty lines assumed that health and education would be provided by the State and formulated poverty lines accordingly. 
  • Findings for Rajasthan-
Area Poverty ratio in 2009-10 Poverty ratio in 2011-12 Change
Rural 26.40 16.05 -10.35
Urban 19.90 10.69 -9.21

 

  • As we can see, statement 1 is incorrect as there is a decline in the poverty ration.
  • Statement 2 is correct, i.e. Poverty ratio in urban areas of the State has declined by 9.2 percent between 2009-10 and 2011-12.
  • Statement 3 is correct since there is a decline in both cases.
  • The poverty ratio in 2011-12 was estimated at 14.7 percent for Rajasthan and 21.9 percent for India. Hence, statement 4 is correct.

Additional Information

  • Some of the important recommendations of the Tendulkar Committee-
    • A shift away from calorie consumption-based poverty estimation
    • A uniform Poverty Line Baskets (PLB) across rural and urban India
    • A change in the price adjustment procedure to correct spatial and temporal issues with price adjustment
    • Incorporation of private expenditure on health and education while estimating poverty.

Link: https://rural.nic.in/sites/default/files/WorkingPaper_Poverty_DoRD_Sept_2020.pdf

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