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Consider the following statement:
1. a shift away from calorie consumption based poverty estimation
2. a uniform poverty line basket (PLB) across rural and urban India
3. a change in the price adjustment procedure to correct spatial and temporal issues with price adjustment
4. incorporation of private expenditure on health and education while estimating poverty
How many of the above were recommended by the Tendulkar committee, constituted to review methodology for poverty estimation?
  • a)
    Only one
  • b)
    Only two
  • c)
    Only three
  • d)
    All four
Correct answer is option 'D'. Can you explain this answer?
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Consider the following statement:1. a shift away from calorie consumpt...
Recommendations by Tendulkar Committee on Poverty Estimation
1. Shift away from calorie consumption based poverty estimation: The Tendulkar committee recommended moving away from the traditional method of estimating poverty based on calorie consumption alone. This shift was aimed at providing a more comprehensive and accurate assessment of poverty in India.
2. Uniform poverty line basket (PLB) across rural and urban India: The committee suggested using a uniform poverty line basket for both rural and urban areas to ensure consistency in poverty estimation across different regions. This approach aimed to address the disparities in poverty levels between rural and urban populations.
3. Change in price adjustment procedure: The Tendulkar committee proposed a change in the price adjustment procedure to account for spatial and temporal variations in prices. This adjustment was necessary to ensure that the poverty line accurately reflected the cost of living in different parts of the country and at different points in time.
4. Incorporation of private expenditure on health and education: The committee recommended including private expenditure on health and education while estimating poverty to provide a more realistic picture of household expenses. This inclusion was crucial in capturing the true financial burden of essential services on households.
Overall, the Tendulkar committee put forth these four key recommendations to improve the methodology for poverty estimation in India, with the goal of creating a more accurate and comprehensive understanding of poverty levels in the country.
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Consider the following statement:1. a shift away from calorie consumpt...
  • Expert group constituted by the Planning Commission and, chaired by Suresh Tendulkar, was constituted to review methodology for poverty estimation and to address the following shortcomings of the previous methods:
    • Obsolete Consumption Pattern: 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.
    • Inflation Adjustment: There were issues with the adjustment of prices for inflation, both spatially (across regions) and temporally (across time).
    • Health and Education Expenditure: Earlier poverty lines assumed that health and education would be provided by the state and formulated poverty lines accordingly.
  • Recommendations:
    • Shift from Calorie Consumption based Poverty Estimation: It based its calculations on the consumption of the items like cereal, pulses, milk, edible oil, non-vegetarian items, vegetables, fresh fruits, dry fruits, sugar, salt & spices, other food, intoxicants, fuel, clothing, footwear, education, medical (non-institutional and institutional), entertainment, personal & toilet goods. Hence option 1 is correct.
    • Uniform Poverty line Basket: Unlike Alagh committee (which relied on separate PLB for rural and urban areas), Tendulkar Committee computed new poverty lines for rural and urban areas of each state based on the uniform poverty line basket and found that all India poverty line (2004-05) was:
      • 446.68 per capita per month in rural areas
      • ₹578.80 per capita per month in urban areas. Hence option 2 is correct.
    • Private Expenditure: Incorporation of private expenditure on health and education while estimating poverty. Hence option 4 is correct.
    • Price Adjustment Procedure: The Committee also recommended a new method of updating poverty lines, adjusting for changes in prices and patterns of consumption (to correct spatial and temporal issues with price adjustment), using the consumption basket of people close to the poverty line. Hence option 3 is correct.
    • Mixed Reference Period: The Committee recommended using Mixed Reference Period based estimates, as opposed to Uniform Reference Period based estimates that were used in earlier methods for estimating poverty.
  • Tendulkar committee computed poverty lines for 2004-05 at a level that was equivalent, in Purchasing Power Parity (PPP) terms to Rs 33 per day.
    • Purchasing Power Parity: The PPP model refers to a method used to work out the money that would be needed to purchase the same goods and services in two countries.
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In a poor country like India, as income rises people first concentrate on increasing their consumption of what they regard as basic or more essential consumer goods. For the poor, these goods would primarily include cereals and for people at successive levels of higher income protective foods, simple non-food consumer goods, more modern, better quality non-food consumer goods and simple consumer durables, better quality consumer goods, and so on. When the demand for basic and more essential consumer goods is more or less met, demand for the next higher level of consumer goods begins to impinge on consumer decision making and their consumption increases. There is thus a hierarchy of income levels and a hierarchy of consumer goods. As incomes rise and one approaches the turning point referred to, there is an upward movement along the hierarchy in the demand for consumer goods which exhibits itself in a relative increase in the demand for these goods. If one examines the past consumption behaviour of households in India, one finds confirmation of the proposition just made. Until the mid seventies one notices a rise in the proportion of consumption expenditure on cereals, and thereafter, a steady decline reflecting a progressive increase in the relative expenditure on non-cereal or protective foods. About the same time the rising trend in the share of food in total consumption expenditure also begins to decline, raising the proportion of expenditure on non-food consumer goods. Simultaneously one also notices a sharper rise in the proportion of expenditure on consumer durables. Thus, what one sees is an upward movement in consumer demand along the hierarchy of consumer goods which amounts to a major change in consumer behaviour.Whenever there is a decline in the proportion of consumption expenditure on cereals

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Consider the following statement:1. a shift away from calorie consumption based poverty estimation2. a uniform poverty line basket (PLB) across rural and urban India3. a change in the price adjustment procedure to correct spatial and temporal issues with price adjustment4. incorporation of private expenditure on health and education while estimating povertyHow many of the above were recommended by the Tendulkar committee, constituted to review methodology for poverty estimation?a)Only oneb)Only twoc)Only threed)All fourCorrect answer is option 'D'. Can you explain this answer?
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Consider the following statement:1. a shift away from calorie consumption based poverty estimation2. a uniform poverty line basket (PLB) across rural and urban India3. a change in the price adjustment procedure to correct spatial and temporal issues with price adjustment4. incorporation of private expenditure on health and education while estimating povertyHow many of the above were recommended by the Tendulkar committee, constituted to review methodology for poverty estimation?a)Only oneb)Only twoc)Only threed)All fourCorrect answer is option 'D'. Can you explain this answer? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about Consider the following statement:1. a shift away from calorie consumption based poverty estimation2. a uniform poverty line basket (PLB) across rural and urban India3. a change in the price adjustment procedure to correct spatial and temporal issues with price adjustment4. incorporation of private expenditure on health and education while estimating povertyHow many of the above were recommended by the Tendulkar committee, constituted to review methodology for poverty estimation?a)Only oneb)Only twoc)Only threed)All fourCorrect answer is option 'D'. Can you explain this answer? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Consider the following statement:1. a shift away from calorie consumption based poverty estimation2. a uniform poverty line basket (PLB) across rural and urban India3. a change in the price adjustment procedure to correct spatial and temporal issues with price adjustment4. incorporation of private expenditure on health and education while estimating povertyHow many of the above were recommended by the Tendulkar committee, constituted to review methodology for poverty estimation?a)Only oneb)Only twoc)Only threed)All fourCorrect answer is option 'D'. Can you explain this answer?.
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