Consumption Data Contradict High Poverty Estimates

• Big difference in data on consumption spending of households compiled by National Income Accounts (NIA) and National Sample Survey Organisation (NSSO)
• NIA’s data is double of the consumption data for 2011-12 compiled by NSSO, indicates poverty levels overstated
• Currently NSSO data is used to measure poverty ratios, matter likely to find mention in C Rangarajan committee report on poverty estimation
• Sudden fall in poverty hit population from 41 crore in 2004-05 to 27 crore in 2011-12 indicates all is not well with poverty estimation calculations

Exams Perspective:

1. What is Planning Commission?
2. NSSO
3. Discrepancy in Poverty estimation figures
4. National Income Accounts (NIA)