Recently C Rangarajan committee was in news and is an important topic in
view of upcoming examinations. So let's understand what is this committee all
about, it's recommendations and it's effects.
C Rangarajan committee-
Who is he?
Mr. Rangarajan is a noted economist, and resigned recently from the post
of the chairman of Prime minister’s
economic advisory council (PMEAC).
Why the committee was constituted-
Why the committee was constituted-
The Planning Commission in May 2012 had constituted the expert group to
review the Tendulkar Committee methodology for estimating poverty, following
uproar over the number of poor in the country.
What changes the committee proposed –
Rangarajan committee proposed the changes in current benchmarks for the
categorisation of poor’s in India ,the current standards which were set by the
recommendations of the Tendulkar committee were –
- Expenditure
of Rs
816 per person per month (Rs 27.2 per person per day) in rural areas.
- Expenditure
of Rs
1000 per person per month (Rs 33.3 per person per day) in urban areas.
- Total numbers of poor were 269.8 million (21.9% of the total population) according to Tendulkar committee report.
The changes proposed by the Rangarajan
panels are as follows-
- Expenditure
of Rs
972 per person per month(Rs 32.4 per person per month) in rural areas.
- Expenditure
of Rs
1407 per person per month(Rs 46.9 per person per month) in urban areas.
- Total number of poor will rise to 363 million (29.6% of total population) according to C. Rangarajan panel recommendations
What will be the effects of the Rangarajan committee proposals on the economy?
- More
people will come under the ambit of below poverty line standards.
- This
will increase the number of beneficiaries who can claim the benefits given
to the BPL families.
- The
step will create more burden on their fiscal budget to help BPL families
under the different PDS (public distribution schemes), Rashtriya Swastha
Bima Yojana, Swarnajayanti Gram Swarojgar Yojna etc.
- More deserving people who were out of the reckoning due to previous benchmarks would come under the benefits.
For more Banking related articles, click on the links given below:
For More Updates Please Like ~ https://www.facebook.com/BankNotification
.jpg)
.jpg)
