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Economy question from JKAS Prelims, 2021 by JKPSC

The Rangarajan panel submitted its report on poverty estimates in January 2014. Major changes were observed in estimation. What are those factors?

1. Minimum calorie requirement for urban and rural areas.
2. Behavioural determination of non-food expenses.
3. Food expenses to include food and protein
4. Per capita expenditure from urban and rural area separately.

 Choose the correct answer

Last updated May 13, 2026
Correct Answer: Option D — All the above
The Rangarajan Committee (2014) was established to review the methodology for measurement of poverty, moving away from the previous Tendulkar Committee's approach. Below is the breakdown of the factors mentioned and the subject classification.

Analysis of the Rangarajan Methodology
The panel introduced several critical shifts in how poverty is calculated in India:

Minimum Calorie Requirement (Point 1): Unlike the Tendulkar Committee, which used a uniform basket, the Rangarajan panel reverted to separate calorie norms for rural and urban areas. It recommended 2155 kcal per person per day in rural areas and 2090 kcal in urban areas.

Behavioral Determination (Point 2): The panel shifted from a "normative" approach (what people should spend) to a "behavioral" approach. It used the observed consumption patterns of households to determine the expenditure required for non-food items like clothing, house rent, and transport.

Food Expenses (Point 3): The "Food Component" was expanded to be more nutritionally comprehensive. Instead of just calories, it factored in the intake of proteins and fats as part of a healthy diet.

Separate Per Capita Expenditure (Point 4): The committee calculated the Poverty Line Basket (PLB) separately for rural and urban areas. For 2011–12, it set the monthly per capita expenditure at ₹972 for rural and ₹1,407 for urban areas.
Answer verified by Quintessence Classes faculty — Karan Nagar, Srinagar.

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JKPSC JKAS 2021 Prelims

Details

Exam JKPSC
Recruitment JKAS
Stage Prelims
Year 2021
Subject Economy
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