Examkin

Question

Difficulty: Very hardPoverty Estimation, Inequality Metrics, and Inclusive Growth Strategies

Consider the following statements regarding the poverty estimation methodology recommended by the C. Rangarajan Committee (2014) in India:

1. It calculated separate poverty line baskets (PLB) for rural and urban areas based on normative levels of nutrition (calories, proteins, and fats) along with essential non-food expenditure.
2. It excluded private household expenditure on health and education from the poverty line basket on the assumption that these are entirely provided by the state.
3. It adopted the Modified Mixed Reference Period (MMRP) to collect consumer expenditure data across 7-day, 30-day, and 365-day recall windows.

Which of the statements given above are correct?

  1. 1 and 3 onlyAnswer
  2. B
    1 and 2 only
  3. C
    2 and 3 only
  4. D
    1, 2, and 3

Answer

Statements 1 and 3 only are correct.
The combination comprising Statements 1 and 3 only is correct. The Rangarajan Committee updated calorie, protein, and fat requirements for rural and urban areas separately, along with normative expenditures on non-food essentials. Furthermore, it adopted the Modified Mixed Reference Period (MMRP) survey method to capture consumption expenditure patterns more precisely.

Step-by-Step Solution

1
Analyze Statement 1 regarding nutritional norms and poverty line basket construction.
Statement 1 is correct. The C. Rangarajan Committee (2014) defined poverty based on normative requirements of calories (2155 kcal rural, 2090 kcal urban), protein (48g rural, 50g urban), fat (28g rural, 26g urban), and non-food essential items.
Establishing explicit nutritional and non-food standards was a key departure from earlier per-capita calorie-only benchmarks.
2
Analyze Statement 2 regarding private expenditure on health and education.
Statement 2 is incorrect. The committee accounted for out-of-pocket expenses for health, education, clothing, and shelter into the non-food component of the poverty basket rather than excluding them.
Assuming state provisioning would understate actual household expenditure needs for essential social services.
3
Analyze Statement 3 regarding the recall period used for consumer expenditure.
Statement 3 is correct. The Rangarajan panel adopted the Modified Mixed Reference Period (MMRP) recommendation of the National Sample Survey Office (NSSO), using 7-day recall for selected perishable foods, 30-day recall for general items, and 365-day recall for durable goods.
MMRP captures short-term frequency consumption items accurately while mitigating memory decay.

Key Concept

C. Rangarajan Committee Poverty Estimation Methodology and Reference Periods
Rate this question

Topics

Poverty Estimation, Inequality Metrics, and Inclusive Growth Strategies