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Short Essay On Poverty Line

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POVERTY LINE The idea of defining poverty in terms of a poverty line was first proposed during the Indian Labour Conference in 1957. According to the Government’s Ministry of Statistics and Programme Implementations: “The official estimates of the poverty line are based on a norm of 2400 calories per capita per day for rural areas and 2100 per capita per day for urban areas.” This goes back to the 1970s; at that time, it was decided to measure poverty levels by considering a minimum nutritional level. More accurately, the measure was the amount of money required to buy food equivalent to this nutritional level. Poverty line is also described as a line which depicts the purchasing power of the people, so as to satisfy the basic minimum necessities of life. It can ‘also be shown as per capita average expenditure. After calculating per person purchase capacity, the minimum level is known. The people, who do not have minimum buying power, are below poverty line (BPL), whereas those, who have enough to satisfy minimum needs, are above poverty line (APL). In the ‘70s, when government first began using this definition, the monthly cost of the ‘basket of food’ required to supply these nutritional levels was calculated to be Rs. 62 in rural …show more content…

The source for this was the 61st round of the National Sample Survey (NSS) and the criterion used was monthly per capita consumption expenditure below Rs. 356.35 for rural areas and Rs. 538.60 for urban areas. Seventy five percent of the poor were in rural areas, with most of them comprising daily wagers, self-employed households and landless labourers. If international poverty line is based on one dollar, then in 2004-05, 34.7 percent people were living below poverty

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