Tuesday, July 30, 2013

Living on 30 rupees per day per person

Indian government has declared that anyone who spends more than 30 rupees per day per person on food and living are above poverty line. What about other expenses, like housing, utilities, school, dresses, medical expenses, entertainment etc?

That means, for a family of 4 - husband, wife, 2 kids - 30 x 4 x 30 = 3600 would be cost needed for food alone. Makes sense, considering the cost of grocery, vegetables etc.

However we need to consider these monthly costs too

Gas cost @ Rs 430, Electricity @ Rs 500, Medical @ Rs 1000, School @ Rs 1000, Dresses @ Rs 2000, Entertainment @ Rs 3000 which includes, movies, cable/dish tv, eating out once etc. & Transport @ Rs 2000.

So in all we would need about 13,600 rs a month to survive in a normal town (or a city like Bangalore/Chennai)

Inputs: I spoke to the security of my apartment - who makes about 8k for a straight 12 hours/day, 6 days shift. Even on that holiday, he goes around doing commission selling work, buying and selling old furniture.

I have a feeling more than 80% of Indians are poor. Including me.

What else do we need?

Main thing would be saving for the future, emergencies, kids marriage expenses....

But if you are an IT folk, with some experience like me...

So in India particularly in Bangalore, a minimum survival budget for food, house, transport, school, etc turns out to be more than 50K/month that too for 2 kids, one husband, one wife only. Now imagine adding up movies @ 300/seat, icecream, pizza, burgers, fries etc. Both spouses should work for quality life in Bangalore. Bachelors need 20k a month.

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