Definition Of Poverty Line

Question by: P.R. Natarajan

1. whether the Government is having any official definition and norms fixed for urban/ rural poverty line across the country;
2. if so, the details thereof;
3. whether any review has been taken by the Government on the norms and cap for poverty line; and
4. if so, the details thereof and if not, the reasons therefor?

Answer by: Minister of State (Independent Charge) of the Ministry of Planning and Minister of State (Independent Charge) of the Ministry of Statistics & Programme Implementation (Rao Inderjit Singh)

• The erstwhile Planning Commission estimated poverty line and poverty ratio based on the recommendations made by the experts in the field from time to time.
• The erstwhile Planning Commission had constituted Task Force under the Chairmanship of Dr. Y.K.Alagh in 1977, Expert Group under the Chairmanship of Prof D.T. Lakdawala in 1989, and the Expert Group under the Chairmanship of Prof. Suresh Tendulkar in 2005.
• The last poverty estimates were released by the erstwhile Planning Commission following the methodology recommended by Tendulkar Committee in 2013 for the year 2011-12 through a Press Note.
• The poverty line was defined on the basis of Monthly Per Capita Consumption Expenditure (MPCE) as the criterion.
• For the year 2011-12, the poverty line at all India level has been estimated as Monthly Per-capita Consumption Expenditure of Rs. 816 for rural areas and Rs. 1000 for urban areas.