Test: Poverty - 1 - UPSC MCQ

Absolute poverty refers to a condition where a person does not have the minimum amount of income needed to meet the minimum requirements for one or more basic living needs over an extended period of time.

In 2004-05, 37.2% of the country's population was below the poverty line with ratios for rural and urban areas at 41.8% and 25.7%. 

Absolute poverty is when household income is below a certain level, which makes it impossible for the person or family to meet basic needs of life including food, shelter, safe drinking water, education, healthcare, etc

 Antyodaya Anna Yojana (AAY) was launched in December 2000. Under the scheme one crore of the poorest and the Below Poverty Line (BPL) families covered under the targeted public distribution system were identified.

The VAMBAY was launched in December 2001 to ameliorate the conditions of the urban slum dwellers living below the poverty line without adequate shelter.The scheme has the primary objective of facilitating the construction and up-gradation of dwelling units for slum dwellers and providing a healthy and enabling urban environment through community toilets under Nirmal Bharat Abhiyan, a component of the scheme.The Central Government provides a subsidy of 50 per cent, the balance 50 per cent being arranged by the State Government.There are prescribed ceilings on costs both for dwelling units and community toilets. During 2003-04, Central subsidy to the extent of Rs. 239 crore has been released. Since inception up to May 2004, Rs. 522 crore have been released as Government of India subsidy for the construction/upgradation of 2,46,035 dwelling units and 29,263 toilet seats under the scheme.

"Mahatma Gandhi National Rural Employment Guarantee Act", MGNREGA), is an Indian labour law and social security measure that aims to guarantee the 'right to work'. This act was passed in September 2005.It aims to enhance livelihood security in rural areas by providing at least 100 days of wage employment in a financial year to every household whose adult members volunteer to do unskilled manual work.

The international poverty line was originally set to roughly $1 a day till 2008.

• Per Capita Income: Per capita income in India is the average income earned per person in a given area in a specified year.


• Options: The given options for per capita income in dollars per annum are: 735, 836, 835, and 736.


• Correct Answer: The correct answer is option D: 736 dollars per annum.


• Explanation: The per capita income in India is approximately 736 dollars per annum, which means on average, each person in India earns 736 dollars in a year.

• Cost Sharing Ratio: 75:25

• Centre and State Contribution: The Sampoorna Gramin Rozgar Yojna is implemented on a cost sharing ratio of 75:25 between the Centre and the States.


• Centre's Share: The Central Government contributes 75% of the total cost of the scheme.


• State's Share: The State Government contributes the remaining 25% of the total cost of the scheme.


• Equal Distribution: This cost sharing ratio ensures that both the Centre and the States bear a portion of the financial burden, promoting equal participation and responsibility in the implementation of the scheme.

Per capita GDP is a measure of the total output of a country that takes gross domestic product (GDP) and divides it by