Rangarajan panel submits report on poverty to Planning Commission

PTI | DECCAN CHRONICLE
Published Jul 1, 2014, 8:22 pm IST
Updated Mar 31, 2019, 9:55 pm IST
Per capita consumption exceeding Rs 32 in urban areas will not be treated as poor
'Per capita consumption exceeding Rs 32 in urban areas will not be treated as poor' C Rangarajan (Photo: DC archives)
 'Per capita consumption exceeding Rs 32 in urban areas will not be treated as poor' C Rangarajan (Photo: DC archives)

New Delhi: Former PMEAC chief, C Rangarajan  has submitted the report on Tendulkar Committee methodology  for estimating poverty to Planning Minister Rao Inderjit  Singh.  "I met Minister of State for Planning Rao Inderjit Singh yesterday in Delhi and submitted the report on poverty," stated Rangarajan.

The Planning Commission in May 2012 had constituted the expert group under the then Prime Minister's Economic Advisory  Council Chairman C Rangarajan to review the Tendulkar  Committee methodology for estimating poverty, following an  uproar over the number of poor in the country. 

The report of the expert group is expected to clear the ambiguity over the number of poor in the country.  Asked about the suggestions or recommendations of panel, he replied, "It is not proper for me to tell you. Now government has to take a view on the report."  The expert group was to submit its report in 7-9 months of its creation. But it got several extensions with the last one extended to June 30. 

The Planning Commission's estimates had drawn flak in September, 2011 when in an affidavit to the Supreme Court it  was stated that households with per capita consumption of more  than Rs 32 in urban areas and Rs 26 in rural will not be  treated as poor.

 

Announcing the setting up of Rangarajan panel, the then Planning Minister Ashwani Kumar had stressed on the need for  revisiting the methodology.  According to the Commission's estimates based on  Tendulkar methodology, released in July last year, the poverty  ratio in the country declined to 21.9 per cent in 2011-12 from  37.2 per cent in 2004-05 on account of increase in per capita  consumption.  In 2011-12, the national poverty line by using the said methodology was estimated at Rs 816 per capita per month in  villages and Rs 1,000 per capita per month in cities.  This meant that those persons whose consumption of goods  and services exceed Rs 33.33 in cities and Rs 27.20 per capita  per day in villages were not classified as poor.  

 

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