GOVERNMENT OF INDIA

MINISTRY OF PLANNING

LOK SABHA

UNSTARREDQUESTION NO: 221

ANSWERED ON: 1.0.2011

DISPARITY BETWEEN RICH AND POOR 

(a) whether as per the recent survey report of the National Sample Survey Organiation (NSSO), the gap between the poor and the rich has widened in the recent past; 

(b) if so, the details thereof alongwith the ratio of the poor and the rich in each State/UT; 

(c) the reasons for increase in the difference in income of the poor and the rich; 

(d) the details of per capita income in rural and urban areas as per the NSSO report, State-wise; 

(e) whether this increase in gap in the income of the poor and the rich has ultimately led to the rise in number of BPL families; 

(f) if so, the details thereof; and

  (g) the action taken by the Government to bridge the gap between the poor and the rich? 

ANSWER

(a) to (d): National Sample Survey Office (NSSO) has recently released the key results of the Household Consumption Survey covering the period July, 200 to June, 2010 in the document titled Key Indicators of Household Consumer Expenditure in India 200-2010. The report compiles the Monthly Per Capita Consumption Expenditure (MPCE) - for rural and urban areas separately in terms of decile class of MPCE . On the basis of the data contained in the survey report, the ratio of MPCE of top 20 to bottom 20 of the population is estimated to be . for the urban areas and 4.2  for rural areas in the year 200-10 as against the corresponding figure of .3 and 4.1 respectively in the year 2004-05. The ratio of MPCE of top 20 of population to bottom 20 state-wise is given at

Annexure-I. The state-wise per capita income is not compiled by the NSSO.   

The State wise Per Capita Expenditure for rural and urban areas separately for the year 200-10 is given at Annexure-II. Further, distribution of per capita income to rural and urban areas at state level is neither compiled by NSSO nor by any agency in the official statistical system. The level of consumption expenditure for all groups of population has increased during the period 2004-05 to 200-10, but the increase in expenditure level of top 20 of the population is comparatively higher. 

 (e) to (g): No Madam. As per the Planning Commissions estimates, the poverty ratio has declined from 3 in 13-4 to 2.5 in 2004-05. The poverty ratio that has been recomputed by the Tendulkar Committee and accepted by the Government also reveals decline in poverty ratio of similar magnitude from 45.1 to 3.2 during 13-14 to 2004-05.   Reduction in income disparities and upliftment of the socio-economic conditions of people of lowincome households has always been the priority of the Governments development policy.

The strategy has been to generate employment opportunities in rural & backward areas and also to develop infrastructure to bring a tangible improvement in the income and standard of living of the people. Additionally, the Government is implementing a number of poverty alleviation programmes such as Mahatma Gandhi National Rural Employment Guarantee Act (MNREGA), Swarnaayanti Gram Swarogar Yoana (SGSY), Indira Awas Yoana (IAY), Jawaharlal Nehru National Urban Renewable Mission (JNNURM), Swarna Jyanti Shahri Rogar Yoana (SJSRY), etc. intended to mitigate poverty and improve the living standards of the people.