1 poor or poverty generally, a person who is unable to satisfy his basic food and non-...
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1
Poor or Poverty
Generally, a person who is unable to satisfy his basic food and non-
food(education ,health ,housing ..etc.) requirements can be
considered as a ‘Poor’ and when poor exists poverty exists.
Statistical definition
Persons whose per capita expenditure value lies below the poverty line are considered ‘Poor’ according to the definition of official poverty line.
Official poverty line of Sri Lanka• The poverty line established on HIES 2002 data by the DCS as the Official Poverty Line
(OPL) for Sri Lanka in June 2004.
• The minimum amount of expenditure per person required to satisfy his/her basic food and non-food expenditure is defined as the ‘Poverty Line’
• The OPL is fixed at a specific welfare level that is a person who meets a certain minimum nutritional intake (2030 kilocalories per capita per day) to compare over time with household food and non- food consumption and expenditure data. Hence call as consumption poverty line.
• The Cost of Basic Needs (CBN) approach which is internationally recognized method was used to determine its value.
• Therefore, OPL is the minimum requirement of nutrients plus the other basic needs( Education, Health, Housing, Clothing etc.)
• The year 2002 value of the OPL which was Rs. 1423 real total expenditure per person per month is updated for the price movements through the Colombo Consumer Price Index (CCPI) calculated monthly by the DCS.
Poverty Headcount Ratio by Survey Period
1990/91 1995/96 2002 2006/07 2009/10 2012 20150
5
10
15
20
25
30
35
26.1%(1/4)
28.8%
22.7%
15.2%
8.9%(1/11) 6.5%
(1/15)
HCR(
%)
4
Mean household Income and Expenditure Distribution by
Survey Periods
2006/07 2009/10 20120
5000
10000
15000
20000
25000
30000
35000
40000
45000
50000
26286
36451
46207
22952
31331
40887
Mean Household Income Mean Household Expenditure
Inco
me
(Rs.
)
2006/07 2009/10 20120
5000
10000
15000
20000
25000
30000
35000
16735
23746
30400
16640
24509
30051
Median Household IncomeMedian Household Expenditure
Expe
ndit
ure(
Rs.)
Median household Income and Expenditure Distribution
by Survey Periods
Food and Non-Food Ratio by Survey Periods
1990/91 1995/96 2002 2006/07 2009/10 20122025303540455055606570
64.6
54.4
44.5
37.642.3
39.435.4
45.6
55.5
62.457.7
60.6
Food Ratio Non-Food Ratio
Survey Periods
Perc
enta
ge(%
)
Average Household Expenditure by selected non food groups by Survey periods
Fuel and light (Rs.)
Health and Personal care
(Rs.)
Transport (Rs.)
Communica-tion(Rs.)
Education(Rs.)
2006/07 1042 980 1862 538 632
2009/10 1278 1429 2317 755 1018
2012/13 1724 2228 3607 891 1430
250
750
1250
1750
2250
2750
3250
3750 2006/07 2009/10
2012/13
Valu
e (R
s.)
Percentage Share of Household Income by Social Economic Groups
1995/96 2002 2006/07 2009/10 20120
10
20
30
40
50
60
5.4 4.8 4.6 4.5 4.4
44.542.4 40.7 41.4 42.1
50.352.8 54.7 54.1 53.5
Poorest 20% Middle 60% Richest 20%
Survey Period
Perc
enta
ge(%
)
Impact Analysis of Social Protection Program
HIES survey collects the social protection information and intend to discover mainly the social assistance and social insurance information. The areas of the social protection covered by HIES in 2012/13 are follows;
Social Insurance programs Social Assistance Programs
Pension Payment Disability / relief payments Health medical aids Compensation Insurance
Samurdhi program Elderly payment Educational & scholarships School food program Triposha food program Disaster relief assistant Foods and other commendations Fertilizer & Other subsidies
Impact of Social protection programs on poverty measures simulating the absence of the program
10
Poverty Headcount Ratio
Indicator 6.5Indicator without listed transfer All social protection 9.2 All social insurance 8.2 All social assistance 7.5 Samurdhi 6.9 Fertilizer subsidies 6.8
The total social protection transfer programs have reduced the poverty from 9.2% to 6.5 %. This social protection transfers lifted 2.7 % poor people above poverty line.
In the absence of pension, poverty headcount indicator would increase to 8.2 %
In the absence of Samurdhi, poverty headcount indicator would increase to 6.9 %