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Surjit Bhalla, Karan Bhasin, and Mr. Arvind Virmani
The paper presents estimates of poverty [extreme poverty PPP$1.9 and PPP$3.2] and consumption inequality in India for each of the years 2004-5 through the pandemic year 2020-21. These estimates include, for the first time, the effect of in-kind food subsides on poverty and inequality. Extreme poverty was as low as 0.8 percent in the pre-pandemic year 2019, and food transfers were instrumental in ensuring that it remained at that low level in pandemic year 2020. Post-food subsidy inequality at .294 is now very close to its lowest level 0.284 observed in 1993/94.
Surjit Bhalla, Karan Bhasin, and Mr. Arvind Virmani

, we stress that any estimate of poverty that relies on household consumption expenditure derived exclusively from survey(s) will overestimate poverty rates, unless the estimation method incorporates the effects of in-kind transfers. 6 In-kind transfers reduce the consumption expenditure of households on items supplied free or at subsidized rates and therefore such adjustments are necessary to arrive at reliable estimates of consumption expenditures and poverty. In-kind transfers of food have been an integral part of redistributive policy in India since the early

Surjit Bhalla, Karan Bhasin, and Mr. Arvind Virmani

views of the IMF, its Executive Board, or IMF management. ABSTRACT : The paper presents estimates of poverty [extreme poverty PPP$1.9 and PPP$3.2] and consumption inequality in India for each of the years 2004–5 through the pandemic year 2020–21. These estimates include, for the first time, the effect of in-kind food subsides on poverty and inequality. Extreme poverty was as low as 0.8 percent in the pre-pandemic year 2019, and food transfers were instrumental in ensuring that it remained at that low level in pandemic year 2020. Post-food subsidy inequality at

International Monetary Fund

IV.1. Selected Economic Indicators IV.2. Poverty Reduction Implied by the Growth Scenario Text tables IV.1. Trends in Poverty: Headcount Rate IV.2. Selected Economic Indicators IV.3 Elasticity Estimates of Poverty with Respect to Growth Annexes IV.1. Estimation of the Production Function IV.2. Projection of Exogenous Variables Summary of the Tax System as of March 2002 Statistical Appendix 1. Gross Domestic Product at Current Prices, 1996/97-2000/01 2. Sectoral Growth Rates at Constant Prices, 1996/97–2000/01 3. GDP by Expenditure at