Monday, July 7, 2025
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ON POVERTY

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The debate on poverty goes on while the stark reality stares one in the face. The Suresh Tendulkar committee recommendations fixed the poverty line in 2009-2010 at Rs 672.50 in rural areas and Rs 859.60 in urban areas. The calculation is based on per capita consumption expenditure on a monthly basis. The amounts are doubtless insufficient for an individual to make ends meet .This benchmark cannot be the key to drawing reliable conclusions .The poverty line based on consumption expenditure or calorie intake pushes it up.How are these numbers adapting to changing times and the price spiral?. Data released by the Planning Commission based on the National Sample Survey for 2009-10 and an update of the Tendulkar poverty line for 2004-05 to 2009-10 presents an unreal picture. Between 2004-05 and 2009-10 ,India’s poverty number is said to have fallen from 37.2% to 29.8%.Of course ,it is nothing compared to the reduction target set by the 11th plan,2 percentage points a year .The data are disaggregated.

Higher growth rate during the period has indeed improved the situation. The job guarantee scheme, a revamped PDS and a mid day meal scheme for school children have enabled the low income states to do well. The percentage of BPL people in Orissa has dropped from 57.2 in 2004-05 to 37 in 2009-2010.High income states like Tamil Nadu and Maharashtra have also seen a significant drop .In contrast, Bihar which is a high growth state has experienced a fall of only one percentage point to 53.5 in the BPL figure .It is argued that the top 10 percent and the bottom 10 percent of Indians have seen a faster drop in poverty figures in villages than in cities .The broad smile on the face of Planning Commission Deputy Chairman Montek Singh Ahluwalia may probably hide the concern behind it.

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