UPSC Prelims 2019 question on State Poverty Lines

Analysis

The Planning Commission methodology for estimating poverty at national and state level was regarded by some as inappropriate in giving a representative picture of the incidence of poverty in the country.

One of the main points of criticism was the application of the same poverty line in all the states, which implied the absence of price differentials across the states. In reality, price levels vary from State to State, which is why official poverty lines are higher in some States than in others — the same income may buy more or less in different states due to price variations.