Suresh Tendulkar Committee, 2005

Suresh Tendulkar committee was constituted in 2005 to review the methodology for poverty estimation.

It has to address the three key shortcomings of the previous methods-

1. Poverty estimates linked to the 1973-74 baskets of goods and services did not reflect significant changes in consumption patterns of poor over time
2. Issues with the adjustment of prices for inflation, both spatially and temporally
3. Presumption of provision of health and education by the State only

The Tendulkar Committee suggested the following ways in measurement of poverty-

1. Poverty line should be based on targeting of nutritional outcomes rather than calorie intake.
2. Instead of two basket of goods for rural and urban poverty lines,there must be a uniform all-India basket of goods across rural and urban areas.
3. Incorporation of private expenditure on health and education while estimating poverty.

Poverty Line: Consumption expenditure fixed at Rs.32 and Rs 26 per day for urban and rural areas. The national poverty line for 2011-12 was estimated at Rs. 816 per capita per month for rural areas and Rs. 1,000 per capita per month for urban areas.