economic survey_ poverty line rangarajan, mnrega, aajeevika, nu 1
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economyTRANSCRIPT
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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R E P L Y ( / 2 0 1 4 / 0 8 / E C O N O M I C - S U R V E Y - C H 1 3 - P O V E R T Y - L I N E - T E N D U L K A R -
R A N G A R A J A N - E N G E L S - L A W - M N R E G A - A A J E E V I K A - N R U M . H T M L ?
R E P L Y T O C O M = 2 4 6 8 2 5 # R E S P O N D )
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.
R E P L Y ( / 2 0 1 4 / 0 8 / E C O N O M I C - S U R V E Y - C H 1 3 - P O V E R T Y - L I N E - T E N D U L K A R -
R A N G A R A J A N - E N G E L S - L A W - M N R E G A - A A J E E V I K A - N R U M . H T M L ?
R E P L Y T O C O M = 2 7 3 4 5 2 # R E S P O N D )
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
R E P L Y ( / 2 0 1 4 / 0 8 / E C O N O M I C - S U R V E Y - C H 1 3 - P O V E R T Y - L I N E - T E N D U L K A R -
R A N G A R A J A N - E N G E L S - L A W - M N R E G A - A A J E E V I K A - N R U M . H T M L ?
R E P L Y T O C O M = 2 8 7 0 8 8 # R E S P O N D )
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………………
R E P L Y ( / 2 0 1 4 / 0 8 / E C O N O M I C - S U R V E Y - C H 1 3 - P O V E R T Y - L I N E - T E N D U L K A R -
R A N G A R A J A N - E N G E L S - L A W - M N R E G A - A A J E E V I K A - N R U M . H T M L ?
R E P L Y T O C O M = 2 8 7 9 0 3 # R E S P O N D )
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
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R A N G A R A J A N - E N G E L S - L A W - M N R E G A - A A J E E V I K A - N R U M . H T M L ?
R E P L Y T O C O M = 2 9 3 2 2 1 # R E S P O N D )
ankur
achcha hai!
tendulkar k saath shrisanth bhi hota to aur achcha hota.:)
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R A N G A R A J A N - E N G E L S - L A W - M N R E G A - A A J E E V I K A - N R U M . H T M L ?
R E P L Y T O C O M = 3 0 7 3 3 2 # R E S P O N D )
Somya
This is very helpful. You are amazing
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Ravi
Thanku sir
u hve provide nice info about rangrajan commitee it will helpful
for my exam.
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24-Aug: Haryana Junior Engineer (http://www.onlinehssc.in/)
24-Aug: Haryana Engineers
(http://www.hssc.gov.in/writereaddata/Advertisements/17_1_1_JEAdvt22015.doc)
26-Aug: Punjab UPDA (http://www.puda.gov.in/)
24-Aug: Haryana Engineers
(http://www.hssc.gov.in/writereaddata/Advertisements/17_1_1_JEAdvt22015.doc)
23-Aug: BEL Ghaziabad (http://bel-india.com/recruitment)
22-Aug: BEL Bengaluru (http://bel-india.com/recruitment)
21-Aug: Dredging Corp. (http://www.dredge-india.com/files/ETO%20Advt.pdf)
21-Aug: NFL Nangal Punjab (http://117.239.4.149/career/)
20-Aug: National Fertilizers Panipat (http://www.nationalfertilizers.com/)
17-Aug: NAL (http://recruit.nal.res.in/jobs/index.html)
17-Aug: UJVN Limited (http://www.uttarakhandjalvidyut.com/recruitment.php)
16-Aug: Haryana Power (http://uhbvn.com/Public_Notices.aspx)
14-Aug: NFL Vijaipur Guna (http://www.nationalfertilizers.com/)
14-Aug: Food Corporation (http://www.fci.gov.in/)
Medics
23-Nov: Haryana SSC (http://www.onlinehssc.in/)
31-Aug: BPS Medical (http://bpsgmckhanpur.ac.in/recruitment.aspx)
24-Aug: Rajasthan Medical (http://rpsconline.rajasthan.gov.in/)
20-Aug: Chhattisgarh Medical (http://www.cgmsc.gov.in/(S
(dnqm10wyqocyramahchdt5r1))/Home/HomePage.aspx)
ParaMedics
31-Jul: Haryana Paramedics
(http://www.hssc.gov.in/writereaddata/Advertisements/16_1_1_Health%20Advt.%202015.doc)
Legal
02-Sep: Army Law
(http://joinindianarmy.nic.in/alpha/writereaddata/Portal/NotificationPDF/Notfn_JAG_16.pdf)
21-Aug: UPPSC Judical (http://uppsc.up.nic.in/Notifications.aspx)
31-Aug: Haryana Judicial (http://highcourtchd.gov.in/?trs=recr_judicial)
Deskjobs
23-Nov: Haryana SSC (http://www.onlinehssc.in/)
20-Sep: ONGC
(http://www.ongcindia.com/wps/wcm/connect/ongcindia/home/career/recruitment+notices/recruitmentcompanysecretariat)
11-Sep: EESL (http://www.eeslindia.org/User_Panel/CareersView.aspx)
26-Aug: Punjab UPDA (http://www.puda.gov.in/)
22-Aug: IIM Kashipur (http://www.iimkashipur.ac.in/careers)
21-Aug: UPSSSC (http://upsssc.gov.in/)
16-Aug: Haryana Power LDC (http://uhbvn.com/Public_Notices.aspx)
13-Aug: M.P.Steno (http://mpinfo.org/MPinfoStatic/rojgar/2015/2007/vac20.pdf)
11-Aug: NISCAIR (http://www.niscair.res.in/Downloadables/down.asp?
a=topframe.htm&b=content.htm&c=Announcements.asp)
Faculty
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)
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