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Question 20 of 34

Q.Explain the limitations of poverty line.

Gujarat GsebGujarat Board (GSEB) HSC Commerce Board 2022Subjective· 2mImportance★★★★★
59% · 20/34 Questions
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The poverty line is limited: it focuses only on minimum consumption, ignores wider needs, misses the near-poor, and depends on method/data.

The poverty line fixes a minimum level of per-capita consumption expenditure below which a person is counted as poor. Its main limitations are:

  • Narrow (calorie/consumption) basis — it is built mainly around a minimum calorie intake or consumption expenditure and ignores other essential needs such as health, education, housing and sanitation, so it does not capture the full quality of life.
  • A thin dividing line — people just above the line are only marginally better off and remain very poor; the line treats them as "non-poor," understating real deprivation.
  • Method and data dependence — poverty estimates change with the committee/method and the survey data used, and prices/needs differ across regions, so a single all-India line can be misleading. …

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