Do you think that taking monthly per capita expenditure as proxy for income of households is a satisfactory mechanism to identify the poor households in our country?
A major problem with this mechanism is that it groups all the poor together and does not differentiate between the very poor and the other poor. This mechanism is helpful in identifying the poor as a group to be taken care of by the government but it would be difficult to identify who among the poor need help the most.
There are many factors other than income and assets which are associated with poverty, for instance, the accessibility to basic education, health care, drinking water and sanitation have been ignored.
The mechanism for determining poverty line also does not take into consideration social factors that trigger and perpetuate poverty such as illiteracy, ill health, lack of access to resources discrimination or lack of civil and political freedom.