Planning Commission has defined poverty on basis of calorie intake not consumption but the official data of poverty public by planning commission is estimated based on consumption expenditure which of the data collected by NSSO in your test it is written so which is correct on consumption expenditure or calorie intake?In your test also do right.

Shivang,

Yes, you are correct that Planning commission has defined poverty on the basis of calorie intake. Under calorie based norms, poverty line is defined on the basis of money value of the consumption basket required to consume a minimum number of calories. For purchasing the minimum amount of calories a consumer has to spend a specific amount. Both calories intake and consumption expenditure can be used interchangeably to fix the poverty line. For example if the Planning commission has determined the minimum average calorie requirement at 2435 calories for the rural households. To purchase a consumption basket providing this much amount of calorie, Rs328 is required which is consumption expenditure.


 

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