economic survey_ poverty line rangarajan, mnrega, aajeevika, nu 1

Economy (http://mrunal.org/category/economy) / 1 year Ago /

106 Comments (http://mrunal.org/2014/08/economic-survey-ch13-poverty-line-tendulkar

1. Prologue

2. Poverty line

1. Tendu Leopard vs Ranga Khush

2. Urban Poverty line

3. Rural Poverty line

4. Why Ranga NAA-KHUSH (unhappy)?

5. How is 100 million poors increased?

6. Calorie Expenditure

7. Engel’s law & MPCE

3. Centrally sponsored schemes (CSS)

4. CSS classification

5. Poverty removal schemes

1. Scheme#1: MNREGA Act 2005

1. MNREGA performance

2. MNREGA Reforms already taken

3. MNREGA: Economic Survey observations

2. Scheme #2: NRLM / Aajeevika

3. Scheme #3: National Urban Livelihood mission

[Economic Survey] Ch13: Poverty Line Estimation- Tendulkar vs Rangarajan, Engel’s Law, MNREGA, Aajeevikaa, Urban Livelihood

English: SP Bakshi

(http://www.flipkart.com/objective-general-

english-2012/p/itmdyuqqgafhtehp?

pid=9788183480000&affid=mrunalrugm)

Mrunal (http://mrunal.org/)

Prologue

links will be updated once I finish last (first) part on UNDP HDI-2014 report.

Poverty line

Q. Who decides Poverty line?

Planning commission

Q. How does it decide poverty line?

• Monthly per capita Expenditure.

• Suresh Tendulkar designed its Formula.

Q. Who provides the data of monthly Expenditure?

• NSSO- National sample survey organization

• under Ministry of Statistics and Programme Implementation

Tendulkar’s poverty line

Area Monthly Expenditure per person (Rs.)

Rural 816

Urban 1000

According to Tendulkar formula, poverty has declined, as seen in following graph:

MUGUP THE VALUE OF TOTAL POORS (%WISE) & IN CRORES

No. of Poors in India (Tendulkar Method)

Tendulkar 2004 2011

Poor % 37.2 21.9

Poor Cr. 41 27

Time for stupid census ranking:

State wise (Ref. Economic Survey 2013 page 238)

Highest rural poverty Lowest poverty

1. tie: Odisha, MP

2. Bihar

3. Assam

1. Kerala (7.1%)

2. Himachal (8.1%)

3. Punjab (8.3)%

highest rural unemployment highest urban unemployment

1. Kerala

2. Assam

3. Bihar

4. WB

….lowest in Gujarat (3/1000)

1. Bihar

2. WB

3. Andhra

4. Haryana

….lowest in Gujarat (34/1000)

Tendu Leopard vs Ranga Khush

Earlier Committees: Alagh ’77, Lakdawala ’89

Committees Tendulkar C.Rangarajan

Set up by Planning commission Planning commission

Set up in 2005 2012, May

Submitted report 2009 2014, July

Poverty estimation

method

Monthly per CAPITA

Expenditure.

Monthly Expenditure of

family of five.

Urban Poverty line

Urban poverty line (Rs) Tendulkar C.Rangarajan

per day per person 33 46.90=~47

per person per month 1000* 1407

per family of five, per month 5000 7035

*this is their official recommendation. Rest numbers are “derived”.

Rural Poverty line

Rural poverty line (Rs) Tendulkar C.Rangarajan

per day per person 27 32

per person per month 816* 972

per family of five, per month 4080 4860*

*these are the official numbers recommended by them. Remaining figures are

derived.

Why Ranga NAA-KHUSH (unhappy)?

Q. Why is Ranga unhappy with journalists and politicians? Inform “the nation”

in 200 words.

VILLAIN RANGA (JOGINDAR) IS ALSO UNHAPPY BECAUSE MAINSTREAM BOLLYWOOD DIRECTORS ALSO RELEASING VULGAR MOVIES & ITEM-SONGS, THEREBY AFFECTING HIS “SUSTAINABLE LIVELIHOOD”

• C. Rangarajan has received lot of negative publicity because:

◦ He kept poverty line to be ridiculously low – Rs.32 for rural and Rs.47 for

Urban.

◦ Therefore He is insensitive towards the poor.

• But Ranga never gave those daily numbers. He had given combined poverty line

for a family of five members- Rs.7035 (Urban), which is a plausible number. After

all, if you live in a family of five, then some costs will get reduced per head (e.g.

rent, lightbill, LPG etc.)

• Besides, if a family spending >7000 per month = their income would be definitely

above 7000. So in reality, Ranga has not “insulted” the poor. Infact, He has tried to

cover more poor under BPL & Sarkaari schemes.

• Media has derived those “insensitive” daily Expenditure figures (Rs.33, Rs.47) by

dividing the monthly Expenditure of five people, then further dividing that

number by 30.

• If you objectively convert Ranga’s poverty line into purchasing power parity (PPP),

it’s $2.44 per person, per day. And that figure even higher than World bank

estimate. In other words, Ranga included more poor in BPL, than even World

bank would!

• Thus, journalists and politicians have misinterpreted the poverty line issue- just

like they misinterpreted Anti-CSAT movement to be against those 8 easy English

MCQs above Decision Making section!

How is 100 million poors increased?

Since Ranga raised poverty line, obviously more people would become “below

poverty line”.

WHY DOES HINDU KEEP SAYING 100 MILLION POORS ADDED?

Poverty in India: Year 2011

Formula # of BPL in crores

Tendu 27

Ranga 37

difference 10 crore = 100 million BPL increased.

anyways moving on

Calorie Expenditure

Tendulkar C.Rangarajan

only calorific value in Expenditure Calorie +Protein + fat. Explained below

In the Indian economy books writing during Adam Smith’s time, you’d have read

poverty line = “2400 calorie in Rural areas and 2100 calorie in Urban areas.” That was

Lakdawalla Committee (1989-1993).

Calorie Lakda Ranga

Rural 2400 2155

Urban 2100 2090

Observe that Ranga reduced the calorie requirement- why?

• Because ICMR study report said so. Besides, over the years use of machinery and

vehicles has increased, so today’s generation doesn’t require that much “calorie”.

Besides, laborers can get extra energy by chewing calorie-free “Gutkha”.

Ranga also included Expenditure on protein & fats

gms / day Rural Urban

Protein 48 50

fats 28 26

Coming back to Original topic:

Tendulkar C.Rangarajan

Only counts Expenditure

on food, health, education,

clothing.

food + nonfood items such as education, healthcare,

clothing, transport (conveyance), rent. + non-food

items that meet nutritional requirements.

—

• Urban poverty increased on faster rate (40%)

than rural poverty (19%)

• This is obvious, because Ranga included non-

food items like rent, education etc.

• These items/services are more expensive in cities

than in villages.

—

Ranga recommends that at any given point of time,

• bottom 35% rural junta always be considered

poor

• bottom 25% urban junta always be considered

poor.

—

• Poverty ratios should be disengaged from

entitlements under Government schemes.

• e.g. cheap foodgrain quota under Food Security

Act should not be based on BPL-ness, but social-

caste census.

Engel’s law & MPCE

Monthly per capita Expenditure: NSSO 68 Round (2011-12)

area Average MPCE Highest in % food Expenditure

th

Urban Rs.2399 Haryana 38.5%

Rural Rs.1278 Kerala 48.6%

• This indicates rural-urban disparity. Cityfolks have more money to spend than

Villagers.

• Engel’s law says: when income rises, % of overall income spent on food item

decreases.

• We can see this happening in urban areas. City folks spending ~39% while

villagers spending ~49% of their income on food.

• Among states: Kerala spends the least money on

Centrally sponsored schemes (CSS)

In June 2013, UPA-II revamped CSS

BEFORE AFTER

137 schemes66 (list given in PRSIndia LINK

(http://mla.prsindia.org/sites/default/files/policy_guide/Policy%20Guide%20CSS.pdf)

States did not

have any

freedom to

spend money

on their

discretion.

10% flexifunds

Some of the

schemes

directly gave

money to NGOs

and project

implementation

agencies like

DRDA.

Entire money will be transferred to Consolidated fund of the state Government.

From there, everyone will get money

—• For every new scheme, states will have to contribution some money themselves.

explained below:

The Union: state contribution ratio will be as following…

Area Union States

Special category states (JK, NE, Himachal & Uttarakhand) 90 10

other states 75 25

CSS classification

As per Economic Survey, we can classify all Sarkaari schemes, into following

categories. And I’ve covered the schemes into the same format in my ch13 summary

subparts.

1. Poverty removal: we are here (MNREGA, Urban and Rural livelihood missions)

2. Health, women and child

3. Education & skill

4. weaker section: welfare, protection

5. Social security

6. infrastructure: rural & urban

Poverty removal schemes

Budget and Economic survey discuss only three schemes under this category

• (1) MNREGA

• Livelihood missions: (2) Rural (Ajiveeka) (3) Urban

Let’s check’em one by one

Scheme#1: MNREGA Act 2005

• under Rural Development ministry

• Promises minimum 100 days of unskilled manual work

• To each rural household. (not to each person)

• In a financial year (1 April to 31 March)

• 1/3 women participation

st st

rd

• Unemployment allowance, if you can’t get work within 15 days

• State governments have to appoint district level ombudsman to hear complaints

• Wages: Material ratio = 60:40

MNREGA Wages are linked with CPI inflation for Agricultural laborers

year MNREGA wages (CPI-AL)

2006 65

2013 132

MNREGA performance

for the year 2013, Average work days 46; women participation 52.9%

Time for another stupid ranking

BEST Worst

Workdays

Tamilnadu Assam

KERALA Punjab

women participation

KERALA UP

Andhra Assam

MNREGA Reforms already taken

1. Individual bank/PO accounts for All women

2. Widowed, deserted, and destitute women identified and covered under MNREGA

scheme.

3. Designed “schedule of rates (SoR)” for physically handicapped laborers, so they

get fair wages despite providing less output.

4. Provided convergence with other schemes such as Nirmal Bharat Abhiyan,

Panchayat Yuva khel Kendra, ICDS Anganwadi centres etc.

MNREGA: Economic Survey observations

1. MNREGA was supposed to a “panchayat-centric and demand driven” program.

But ground reality is different.

2. Gram Sabha is unaware of its powers. Social audits not done regularly.

3. Hardly any Gram Sabha using MNREGA for public works such as Playground,

Anganwadi etc.

4. Shortage of Technical staff => Delay in work measurement => delay in payment.

5. At many places, males find higher wage-work in nearby towns. Therefore only a

few women come at MNREGA site. Big projects cannot be taken up due to worker

shortage.

6. Suggested reform: Use MNREGA for tourism related infrastructure.

7. Budget 2014: promised to use MNREGA for creating Agriculture related “more

productive” assets.

Scheme #2: NRLM / Aajeevika

• Who? Rural Development Ministry

• 1999: Swarnjayanti Gram Swarozgar Yojana (SGSY). Later renamed to National

Rural Livelihood Mission (NRLM). Finally renamed to Aajeevika.

• Wants to lift rural families from abject poverty

• How?

◦ By 2024, get one person (preferably woman) from each household, into an

income generating Self-help groups (SHG).

◦ By Giving (Bank loans + subsidy + training) to those SHG.

• Economic Survey observation:

◦ Scheme worked fine for agarbatti, pottery, tailoring and other small business

activities.

◦ But at some places, Government made too much infrastructure investment

compared to scope of the given business activity.

Aajiveeka: Budget 2014

• Under Aajiveeka, Women-SHG in backward districts get loans at cheaper interest

rate.

• Budget 2014 increased the number of backward districts under this scheme.

More districts to get Cheaper SHG-loans

Loan interest

rateBefore 2014 after

4%In 150 most backward

district+100 more added = 250

7% Remaining districtsinterest rate unchanged

(7%)

Additionally, Budget 2014 also announced “Start Up Village Entrepreneurship

Programme” for rural youth. but exact details yet to be worked out.

Scheme #3: National Urban Livelihood mission

1. Who? Ministry of Housing & Urban poverty alleviation.

2. Earlier called Swarnajayanti Sahari Swarojgar Yojana. Then renamed into National

urban livelihoods mission, with following features

1. self-help groups: bank credit + subsidies + skill training

2. street vendors also get easy loans and skill training

3. Shelters for the homeless.

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Sunil

Sir

I would like to ask you that when upsc will declare the result of

CSAT Pre which was conducted on 24 August 2014. sir please

tell me the tentative date.




A KISHOR

Thank u Sir

I have studied the same topic in Chronicle in 3-4 pages and

convinced myself that i get it.

Now its clear.Chronicle is good too but mixes so many things at

one place .I forget things after reading from Chronicle.Chronicle

has not cleared media interpretation vs Tendu and Ranga

interpretation. Most of the things are derived from Tendu and

Ranga in Chronicle ,Not five people concept.

EK request hai Sir ,

Taxation par ek ppt digiye jo mai bhool na saku aur wo deficit,

inflation ,deflation ko bhi relate kare.

Thanks Sir




Ghanshyam

i want to say please you are provoiding all schemes in rural

areas but their public dont know whats is the scheme for us

i have a message for those people.

and not proper inplimantation of those scheme so

i have a request give some more instruction to SARPANCH and

GRAM SACHIV

thankyou………………




venkata prasad

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sir ur effort isawesome and civils aspirants of this site are

indebted to u .one request , pls make this valueble material

easy to download by placing all the topicwise material at one

place, with one click download thanks a lot




ankur

achcha hai!

tendulkar k saath shrisanth bhi hota to aur achcha hota.:)




Somya

This is very helpful. You are amazing




Ravi

Thanku sir

u hve provide nice info about rangrajan commitee it will helpful

for my exam.

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16-Sep: Rajasthan Central (http://www.curaj.ac.in/Default.aspx?PageId=75)

04-Sep: RGU Itanagar (http://rgu.ac.in/jobsatrgu.html)

31-Aug: AIIMS Bhubaneswar (http://www.aiimsbhubaneswar.edu.in/)

31-Aug: BPS Medical (http://bpsgmckhanpur.ac.in/recruitment.aspx)

31-Aug: Gautam Buddha Uni (http://www.gbu.ac.in/Recruitment.aspx?Id=103)

31-Aug: Punjab Central Uni. (http://cup.edu.in/index_home.php)

31-Aug: S.Bihar Central univ. (http://cub.ac.in/index.php?

option=com_content&view=article&id=31&Itemid=157)

30-Aug: Defence Institute (http://14.139.111.180/admin.html)

26-Aug: MIMS Karnataka (http://www.mimsmandya.org/index_files/WII8.htm)

24-Aug: MNIT jaipur (http://mnit.ac.in/news/news.php?news_id=1195)

24-Aug: Rajasthan Faculty (http://rpsconline.rajasthan.gov.in/)

22-Aug: IIM Kashipur (http://www.iimkashipur.ac.in/careers)

18-Aug: Chhattisgarh (http://psc.cg.gov.in/htm/online_application.html)

14-Aug: AMU Aligarh (http://www.amuregistrar.com/app_form.pdf)

14-Aug: M.Nehru College (http://www.mlncdu.ac.in/recruitment.html)

14-Aug: Ramanujan College (https://php2-rcdu.rhcloud.com/?notice=application-

are-invited-for-the-permanent-posts-of-assistant-professor)

13-Aug: Kidwai Oncology (http://kmio.org/circulars_admin/Notification-HK371-J-13-

7-2015.pdf)

12-Aug: NIPER Hyderabad (http://www.niperhyd.ac.in/)

Specialists

15-Sep: HPCL (http://www.hindustanpetroleum.com/careeropportunities)

11-Sep: EESL (http://www.eeslindia.org/User_Panel/CareersView.aspx)

04-Sep: RGU Itanagar (http://rgu.ac.in/jobsatrgu.html)

31-Aug: Lok sabha (http://164.100.47.132/JRCell/Module/Notice/interpreter.pdf)

31-Aug: Punjab Central Uni. (http://cup.edu.in/index_home.php)

31-Aug: Hindi Assistants

(http://www.davp.nic.in/WriteReadData/ADS/eng_31201_17_1516b.pdf)

31-Aug: IITR Lucknow (http://www.iitrindia.org/faculty.htm)

31-Aug: Interpreter Lok Sabha

(http://www.davp.nic.in/WriteReadData/ADS/eng_31201_16_1516b.pdf)

28-Aug: NISER (http://www.niser.ac.in/drupal_new/)

27-Aug: UPSC (http://upsc.gov.in/recruitment/advt/2015/Advt_10_2015.pdf)

25-Aug: Interpreter (http://employment-newspaper.com/20-interpreter-vacancies-

in-cabinet-secretariat/)

25-Aug: Neyveli Lignite (http://www.nlcindia.com/index.php?file_name=careers)

24-Aug: Bharat Dynamics Limited (http://bdl.ap.nic.in/bdlrecruit.htm)

24-Aug: Rural Electrification Corp (http://www.recindia.nic.in/index.php?

option=com_content&view=article&id=111&Itemid=861&lang=en)

24-Aug: Patent Examiner (http://www.recruitmentnpc.in/)

21-Aug: BPRCL (http://bpclcareers.com/careers-bpcl.aspx)

19-Aug: ICAR (http://asrb.org.in/component/option,com_vacancy/Itemid,56/)

17-Aug: Kerala Minerars (http://kmml.com/php/list_advertisement.php?

linkid=30&partid=5)

17-Aug: Western Railway (http://wr.indianrailways.gov.in/)

19-Aug: Kamdhenu University (http://www.ku-guj.org/advdetail.aspx)

14-Aug: Rare Earths (http://www.irel.gov.in/scripts/advertisement.asp)

14-Aug: AMU Aligarh (http://www.amuregistrar.com/app_form.pdf)

14-Aug: M.Nehru College (http://www.mlncdu.ac.in/recruitment.html)

14-Aug: Food Corporation (http://www.fci.gov.in/)

14-Aug: Gujarat Petro Corp

1. Online Form Part-I stops few days before deadline, so don't wait till last date.

Dont forget reg.id & roll no.Note'em in Google Drive

(https://www.google.com/drive/)

2. I usually update vacancies every Monday.Purple link= newly added,Blue=

existing.Last updated Aug 10, at 09:27 PM

(http://gspcgroup.com/uploaded_data/career_pdf/42.pdf)

14-Aug: UPPCS (http://uppsc.up.nic.in/Notifications.aspx)

13-Aug: Kidwai Oncology (http://kmio.org/circulars_admin/Notification-HK371-J-13-

7-2015.pdf)

Uniform

24-Sep: Bihar Prison Warden (http://csbc.bih.nic.in/)

18-Sep: Bihar Police (Female) (http://csbc.bih.nic.in/)

10-Sep: ITBP (http://itbpolice.nic.in/itbpwebsite/index.html)

28-Aug: Bihar Excise constable (http://csbc.bih.nic.in/)

B.Com,CA,HR,MBA

22-Aug: Haryana Company secretary

(http://www.hpsc.gov.in/Advertisement/2015/Advt%201%20of%202015_Naib_CS.pdf)

12-Aug: NTPC Finance Executive (http://open.ntpccareers.net/fin20152/index.php)

(https://www.facebook.com/Mrunal.org)

(https://twitter.com/mrunal_patel)

(https://plus.google.com/109455346868280536907?

rel=author)

(http://www.youtube.com/user/TheMrunalPatel)

(http://feedburner.google.com/fb/a/mailverify?

uri=CivilServiceExam)

HOME (HTTP://MRUNAL.ORG/) ECONOMY (HTTP://MRUNAL.ORG/ECONOMY)

DOWNLOAD (HTTP://MRUNAL.ORG/DOWNLOAD) CONTACT ME (HTTP://MRUNAL.ORG/CONTACT)

The work of Mrunal (http://mrunal.org/) is under the Creative Commons Attr ibution-Non Commercial-

ShareAlike 4.0 License (http://creativecommons.org/licenses/by-nc-sa/4.0/deed.en_US).Permissions

beyond the scope of this l icense may be available at Mrunal.org/contact (http://mrunal.org/contact).

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