Interconnections Between Income and Expenditure Approach to Measure Poverty in Northern Rajasthan

The present study attempts to identify convenient poverty assessment in Northern Rajasthan. The study used primary data from 300 households following multistage random sampling process. In this study monthly per capita expenditure and monthly per capita income poverty lines were used as standard of measurement to measure poverty. To address dimension of poverty the study used, the FGT poverty measure that was introduced by (Foster, Greer, and Thorbecke, 1984). The study found that, income approach poverty line is 2.4 times higher than expenditure approach poverty line. Income approach estimated more number of poor than expenditure approach, 17.3 and 32 percent of sampled households are under poverty line in Northern Rajasthan using expenditure and income approaches, respectively. Expenditure approach result revealed, poverty is declining, whereas, income approach resulted poverty is increasing in the study area. Furthermore, income approach needs more resource than expenditure approach to lift households from poverty.11.7 percent households were detected simultaneously by income-and expenditure poverty measure as poor. The poverty gap index was 0.04 by expenditure approach and 0.12 by income approach in the study area. On average 4 percent of the poverty line cash transfer needed to lift each poor person out of poverty following expenditure approach. But, on average 12 percent of the poverty line cash transfer needed to lift each poor person out of poverty following income approach.