SYLLABUS SECTION: GS III (ECONOMY)
WHY IN THE NEWS?
Recently, the report “The State of Inequality in India” commissioning by the EAC-PM.
- They have been releasing the PM RELEASES STATE OF INEQUALITY.
- It is based on the data derived from various rounds of the Periodic Labour Force Survey (PLFS).
- The National Family and Health Survey (NFHS) and UDISE+.
- A monthly salary of Rs 25,000 amongst the top 10% of total incomes earner in the Country,
- The trickle-down approach has failed but the incomes of The top 1% of earners grew by 15% from 2017-to 18.
- And About 2019-2020 while that of the bottom 10% declined by 1%.
- In the country top, 1% accounts for 6-7% of total incomes earned.
- While the top 10% accounts For one-third of all incomes earned.
- Employment Status (2019-20): Self-employed workers (45.78%), followed by regular salaried workers (33.5%) and casual workers (20.71%).
- Sectors that have been improving: Because the Health, Education and Household conditions are recording significant improvements such as a number of health centres, because of water and sanitation facilities at schools, safe drinking water and electricity in homes.
- States and Union Territories like Rajasthan, Gujarat, Maharashtra, Madhya Pradesh, Tamil Nadu and Chandigarh.
- They have significantly increased health centres (comprising Sub-Centres, Primary Health Centres, and Community Health Centres) between 2005 and 2020.
- Nutritional deprivation in terms of overweight, underweight, and prevalence of anaemia (especially in children, adolescent girls and pregnant women) remains areas of huge concern requiring urgent attention,
Recommendations in the report:
- To establish airtight slabs that make class-based distinctions clear to trace movement within a class and in and out of the class.
- This will help define the middle-class income share and target beneficiaries of social protection schemes.
- Raising minimum income and introducing a universal basic income.
- It can reduce the income gap and equal distribution of earnings in the labour market.
- Urban equivalent schemes like The Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS), So Which are demand-based and offer guaranteed Employment should be introduced so that surplus labour is rehabilitated.
- Allocate more percentage of the expenditure towards social services and the social sector.
- It will make the most vulnerable population resilient to sudden shocks and stop their descent into poverty.
- Equitable access to education and the creation of more jobs with long term growth is vital for triggering upward mobility among the poor.
- Government should also encourage the regular exercise of the Foundational Learning and Numeracy Index, and Ease of Living Index for the purpose of stock-taking on the extent of vulnerability among households and how to promote their overall well-being.
Economic Advisory Council to the PM
- Economic Advisory Council to the Prime Minister (EAC-PM) is an independent body constituted to give advice on economic and related issues to the government of India, specifically to the Prime Minister.
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