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Decreasing Poverty

  • On March 20, 2012 Planning Commission Deputy Chairman Montek Singh Ahluwalia said that the latest poverty estimates show that the rate of reduction in poverty, using the Tendulkar poverty line, has accelerated considerably after 2004-05.

  • The rate of reduction in the five years between 2004-05 and 2009-10 is about 1.5 percentage points per year.

  • This is twice as fast as the rate of reduction in the previous 11 years, from 1993-94 to 2004-05.

  • Poverty estimates for 2009-10 are at 29.8 per cent compared to 37.2 per cent in 2004-05 and 45.3 per cent in 1993-94.

  • On a monthly basis, the poverty estimates for urban areas is Rs 4298 and for rural areas, Rs 3364 as compared to Rs 2894 and Rs 2234 in 2004-05.

 

 

  • Ahluwalia has asserted that the poverty estimates are not for fixing the threshold for entitlements for food subsidy benefits and it would not be linked to the number of persons estimated to be below the official poverty line.

  • For the purpose of food security, the size of the beneficiary population will be much larger and will be determined as per entitlements stated in the Food Security Bill, which is being finalised.

  • He said the real purpose of estimating a population below a fixed poverty line is to judge whether progress was being made over time.

  • While defending the poverty estimates, the Planning Commission has also tried to emphasise that the estimates on the basis of the Tendulkar poverty line are per capita expenditure on a monthly basis and not daily basis.

 

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