Which of the following statements with regard to the Report of Tendulk

Which of the following statements with regard to the Report of Tendulkar Committee (2009) on poverty estimates is/are correct?

  • The Committee had used an all-India urban poverty line basket as a reference to derive both rural and urban poverty levels.
  • The Committee had anchored the poverty line to the official food calorie norms.

Select the correct answer using the code given below.

1 only
2 only
Both 1 and 2
Neither 1 nor 2
This question was previously asked in
UPSC CDS-1 – 2024
A) 1 only
– Statement 1 is correct. The Tendulkar Committee (2009) recommended a new method for poverty estimation. It moved away from separate poverty lines for rural and urban areas based on calorie norms. Instead, it used the urban poverty line basket (based on 2004-05 prices and consumption data) as a reference and adjusted it for rural areas using an appropriate price index (Mixed Recall Period based implicit price index). This resulted in a common poverty line basket consumption pattern for both rural and urban areas, though the monetary value of the poverty line differed due to price differences.
– Statement 2 is incorrect. A key recommendation of the Tendulkar Committee was to shift away from anchoring the poverty line solely to the official food calorie norms. While food consumption was still considered, the committee included expenditure on education and health in addition to food, implicitly incorporating non-caloric dimensions of poverty. It specifically rejected the calorie-based anchoring used by previous committees.
– The Tendulkar Committee’s recommendations led to higher poverty estimates compared to the previous Lakdawala Committee method, mainly because it accounted for a wider range of expenses beyond basic food needs anchored to calorie intake.