Citingthe“skewednature”ofincomedistributioninthecountry,thereportalsorecommendedstepstoraiseminimumincomeandmoregovernmentspendingonthesocialsectortomakevulnerablesectionsimmunetosuddenshocks”and“stoptheirdescentintopoverty”. Thereport,titled“TheStateofInequalityinIndia”andpreparedbytheGurgaon-basedInstituteforCompetitiveness,wasreleasedonWednesdaybyEACchairmanBibekDebroy. “Lookingatthedifferencebetweenthelabourforceparticipationrateinruralandurbanareas,itisourunderstandingthattheurbanequivalentofschemeslikeMGNREGSthataredemand-basedandofferguaranteedemploymentshouldbeintroducedsothatthesurplus-labourisrehabilitated,”itsaid. Accordingtothereport,raisingminimumincomeandintroducinguniversalbasicincomearesomeoftherecommendationsthatcanreduceincomegapandensureequaldistributionofearningsinthelabourmarket. “Mostimportantly,theGovernmentmustallocatemorepercentageoftheexpendituretowardssocialservicesandthesocialsectortomakethemostvulnerablepopulationresilienttosuddenshocksandstoptheirdescentintopoverty,”itsaid. TheEAC-PMnotedthatthemostimportantaspectofmeasuringpovertyinamulti-dimensionalcontextrequiresmappingthemobilityinandoutofpoverty. CitingtheresultsofthethreeroundsofthePeriodicLabourForceSurvey(PLFS),theCouncilnotedthatinthethreeyearsto2019-20,“exceptingforverymarginalchanges”,thetop1percentofpopulationheld6-7percentofthetotalincomeearned,whilethetop10percentheldathird. Overthethreeyearsto2019-20,theshareofthetop1percentofthepopulationinthecountry’stotalincomeincreasedfrom6.14percentto6.82percent. Itsaidthatthoughtherewasmarginaldeclineintheincomeshareofthetop10percentfrom35.18percentin2017-18to32.52percentin2019-20,thishasn’tresultedinincreasedsalariesofthebottom-mostpopulation.“…Thetop1percentgrewbyalmost15percentbetween2017-18to2019-20,whereasthebottom10percentregisteredacloseto1percentfall(intheirincomeshare),”itsaid. Speakingatthereleaseofthereport,Debroysaidthat“inIndia,wehaveneverhadcomprehensivedataandwewillneverhavedatameasuringincomeinequality”. “TheclosestwasNCAERdatamanyyearsagobutonewasveryscepticalofthatdespiteitbeingNCAER.Whatwedohaveandwhatweshouldhaveisdataondistributionofconsumptionexpenditure.Unfortunately,it’sthecasethatthelastcomprehensiveNSSdataonconsumptionandexpenditureisfor2011-12.Andwehavehadnothingafterthat.Inallprobabilityanotherconsumptionexpenditureroundwillstartthisyear.Butwewillnothaveprocesseddatatilltheendoftheyear,”Debroysaid. “Intheabsenceofdataonconsumptionexpenditure,acleararticulationofthepovertyline,obviouslywedonotknowwhatpovertynumbersare,everyonejumpsintothebandwagon.Allkindsofpeopledosomekindofextrapolationonthebasisof2011-12data,onthebasisofsomeassumedTendulkarpovertylineandcomeupwithallkindsofestimates…TheonlydatawhichcanbeusednowisPLFSwhichiswhatthisreportmostlyuses,”hesaid. ThecallforaUBIschemecouldrevivethedebateonwaystoaddressgrowingincomeinequality.TheideawasendorsedbyformerchiefeconomicadvisorArvindSubramanianintheEconomicSurveyforFY17inplaceofsubsidytransfer.Thesurveyhadassumedaquasi-universalityrateof75percent(ofallbeneficiaries).Subramanianhadcalculatedtheecono
