Measurement of poverty on the basis of expenditure and income method
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expenditure and income of a country can be measured by GDP(gross domestic product).if there is a increase in country GDP, there is increase in income of the country and we can also that there is decrease in poverty of the country
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In India, poverty is defined using the calorie based norm. The minimum average calorie requirement is determined by the planning commission at 2435 calories and 2045 calories respectively for the rural households and urban households. Based on the calorie requirements, in 1999-2000 poverty line was fixed at Rs 328 per person per month for rural households and Rs 454 per person per month for urban households. However, this mechanism does not help in judging the extent of poverty for an individual, thereby identifies poor only as a group and does not differentiate between the poor and very poor.
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