The Rangarajan Committee methodology for determining the poverty line

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

Select the answer using the code given below :

1 and 2 only

2 and 3 only

1, 2 and 3

1 and 3 only

This question was previously asked in

UPSC CDS-2 – 2024

Download PDF Attempt Online

The correct option is C. The question asks what the Rangarajan Committee methodology for determining the poverty line incorporated.

The C. Rangarajan Committee, constituted in 2012 to re-examine poverty estimation methods in India, proposed a new methodology. A key feature of their approach was a more detailed consideration of consumption requirements, separating them into food and non-food components.
1. **A food component:** The committee derived a food expenditure norm based on calorie, protein, and fat requirements, and the actual observed expenditure on food items by households meeting these nutritional norms.
2. **A normative level of expenditure for essential non-food items:** This part of the non-food component included essential items like clothing, house rent, education, and health. The expenditure for this was estimated based on the average expenditure observed among households in certain expenditure fractiles (specifically, the 25-30% fractile) for these items. This was considered a “normative” requirement.
3. **A behaviourally determined expenditure for other non-food items:** This part covered other non-food expenses like conveyance, durable goods, etc. The expenditure for these items was also estimated based on the average expenditure observed among households in the 25-30% fractile whose food expenditure met the required nutritional level. This was seen as reflecting actual “behavioural” consumption patterns beyond the essential non-food needs.

The Rangarajan Committee’s method was distinct from the Tendulkar Committee’s which used a consumption basket derived from expenditure on food that met calorie norms and allowed for a moderate amount of spending on non-food items based on observed patterns. The Rangarajan approach explicitly segmented non-food expenditure into normative and behaviourally determined components, in addition to calculating a food component based on nutritional requirements and actual expenditure. All three statements accurately describe elements included in the Rangarajan Committee’s poverty line methodology.

More similar MCQ questions for Exam preparation:-