 "We have separately calculated urban and rural poverty lines, unlike Tendulkar: C Rangarajan")
C Rangarajan, former head of the former Prime Minister's Economic Advisory Council, answers questions on the latest official poverty estimate by a committee he'd chaired. Edited excerpts of a talk with Indivjal Dhasmana:
Your panel has suggested these poverty lines be delinked from social welfare schemes. What would be the exercise's relevance? Is it of only academic interest?
Poverty ratios have already been delinked from various social programmes. The two have already been cut off. The poverty ratios will tell us how the economy is changing, from the point of view of its impact on the lives of the people. How the economy is benefiting the poorer strata.
These requirements change over five to 10 years. Maybe, we'll have to take a relook at the age profile, gender profile and work nature of our population after these many years. Ten years would be better.
According to the Suresh Tendulkar committee method, the poverty line in urban areas was 22 per cent higher than rural areas in 2011-12, while it was 47 per cent according to your panel. Why is it so?
We have separately calculated urban and rural poverty lines. Tendulkar did not do that and measured the rural lines from urban poverty criteria. Earlier, the Lakdawala committee also calculated urban and rural poverty lines separately.
Why do you insist on poverty lines to be considered on the basis of monthly expenditure by households and not per capita per day expenditure?
I am saying, look at the National Sample Survey Office report. The poverty lines are based on only these. NSSO reports measure it on the basis of household consumer expenditure on a monthly basis.
Your panel has suggested these poverty lines be delinked from social welfare schemes. What would be the exercise's relevance? Is it of only academic interest?
Poverty ratios have already been delinked from various social programmes. The two have already been cut off. The poverty ratios will tell us how the economy is changing, from the point of view of its impact on the lives of the people. How the economy is benefiting the poorer strata.
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You said a changing profile and nature of work leads to a change in the calorie intake required for a healthy person. How long should one wait before it changes these parameters again, for estimating poverty lines?
These requirements change over five to 10 years. Maybe, we'll have to take a relook at the age profile, gender profile and work nature of our population after these many years. Ten years would be better.
According to the Suresh Tendulkar committee method, the poverty line in urban areas was 22 per cent higher than rural areas in 2011-12, while it was 47 per cent according to your panel. Why is it so?
We have separately calculated urban and rural poverty lines. Tendulkar did not do that and measured the rural lines from urban poverty criteria. Earlier, the Lakdawala committee also calculated urban and rural poverty lines separately.
Why do you insist on poverty lines to be considered on the basis of monthly expenditure by households and not per capita per day expenditure?
I am saying, look at the National Sample Survey Office report. The poverty lines are based on only these. NSSO reports measure it on the basis of household consumer expenditure on a monthly basis.