The Rangarajan Committee methodology for determining the poverty line incorporated which of the following?

1. A food component

2. A normative level of expenditure for essential non-food items

3. A behaviourally determined expenditure for other non-food items

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CDS-II (General Knowledge) Official Paper (Held On: 01 Sept, 2024)
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  1. 1 and 2 only
  2. 2 and 3 only
  3. 1, 2 and 3
  4. 1 and 3 only

Answer (Detailed Solution Below)

Option 3 : 1, 2 and 3
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The correct answer is  1, 2 and 3.

Key PointsRangarajan Committee Methodology

  • The Rangarajan Committee was established in 2012 to review the methodology for measuring poverty in India.
  • It aimed to provide a more comprehensive understanding of poverty by including various essential components in the measurement.
  • The committee's methodology incorporates the following elements:
  • A food component:
    • The committee included a food component that ensures a minimum calorie intake necessary for sustaining a healthy life.
    • This calorie intake is based on the recommendations of the Indian Council of Medical Research (ICMR).
    • The food component ensures that the basic nutritional needs of individuals are met.
    Hence, statement 1 is correct.
  • A normative level of expenditure for essential non-food items:
    • This includes the expenditure necessary for essential non-food items such as clothing, shelter, education, and healthcare.
    • It is based on a normative assessment of the requirements for a minimum standard of living.
    • This ensures that the poverty line reflects not only food needs but also essential non-food necessities.
    Hence, statement 2 is correct.
  • A behaviourally determined expenditure for other non-food items:
    • The committee also considered the expenditure patterns of the population for other non-food items.
    • This includes items that individuals spend on, based on their behaviour and preferences.
    • This component ensures that the poverty line is realistic and reflects actual expenditure patterns.
    Hence, statement 3 is correct.

Additional Information

  • The Rangarajan Committee was chaired by C. Rangarajan, a former Governor of the Reserve Bank of India and a noted economist.
  • The committee's report provided a revised approach to measuring poverty, differing significantly from the earlier Tendulkar Committee report.
  • According to the Rangarajan Committee, the new poverty line was set at Rs. 972 per capita per month in rural areas and Rs. 1,407 per capita per month in urban areas for the year 2011-12.
  • The committee's approach was more holistic, considering both food and non-food expenditures, and aimed at providing a more accurate picture of poverty in India.
  • The Rangarajan Committee's recommendations were intended to help policymakers design better-targeted poverty alleviation programs and allocate resources more effectively.
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