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The task force headed by NITI Aayog Vice-Chairman Arvind Panagariya to prepare a road map for elimination of poverty has submitted its report to the Prime Minister's Office (PMO). The main task of task force was to prepare a road map for elimination of poverty as well as suggest strategies and anti-poverty programmes. Suggestions of Report: The task force has suggested that a new committee be set up, which in participation with the states and other stakeholders, should work on defining the BPL population and identify them. This task force suggested four options for tracking the poor. First, continue with the Tendulkar poverty line. Second, switch to the Rangarajan or other higher rural and urban poverty lines. Third, track progress over time of the bottom 30 per cent of the population and fourth , track progress along specific components of poverty such as nutrition, housing, drinking water, sanitation, electricity and connectivity. Third and fourth options can complement measurement of poverty using a poverty line, the paper suggested, adding that they cannot be a substitute for it.
Poverty Related Committees
National Planning Committee
In 1938, National Planning Committee (NPC) was set up with Jawaharlal Nehru as chairman for the purpose of drawing up an economic plan with the fundamental aim to ensure an adequate standard of living for the masses. The Committee regarded the irreducible minimum income between Rs. 15 to Rs. 25 per capita per month at Pre-war prices. However, this was also not tagged something as a poverty line of the country.
First Planning Commission working group
The concept of the poverty line was first introduced by a working group of the Planning Commission in 1962 and subsequently expanded in 1979 by a task force. The 1962 working group recommended that the national minimum for each household of five persons should be not less than Rs 100 per month for rural and Rs. 125 for urban at 1960-61 prices. These estimates excluded the expenditure on health and education, which both were expected to be provided by the state
Y K Alagh Committee
Till 1979, the approach to estimate poverty was traditional i.e. lack of income. It was later decided to measure poverty precisely as starvation i.e. in terms of how much people eat. This approach was first of all adopted by the YK Alagh Committee’s recommendation in 1979 whereby, the people consuming less than 2100 calories in the urban areas or less than 2400 calories in the rural areas are poor. The logic behind the discrimination between rural and urban areas was that the rural people do more physical work. Moreover, an implicit assumption was that the states would take care of the health and education of the people. Thus, YK Alagh eventually defined the first poverty line in India
Lakdawala Formula
Till as recently as 2011, the official poverty lines were based entirely on the recommendations of the Lakdawala Committee of 1993. This poverty line was set such that anyone above them would be able to afford 2400 and 2100 calories worth of consumption in rural and urban areas respectively in addition to clothing and shelter. These calorie consumptions were derived from YK Alagh committee only. Lakdawala formula was different in the following respects in comparison to the previous models: In the earlier estimates, both health and education were excluded because they were expected to be provided by the states. This committee defined poverty line on the basis of household per capita consumption expenditure. The committee used CPI-IL (Consumer Price Index for Industrial Laborers) and CPI- AL (Consumer Price Index for Agricultural Laborers) for estimation of the poverty line. The fallout of the Lakdawala formula was that number of people below the poverty line got almost double. The number of people below the poverty line was 16 per cent of the population in 1993-94. Under the Lakdawala calculation, it became 36.3 per cent.
Suresh Tendulkar Committee
In 2005, Suresh Tendulkar committee was constituted by the Planning Commission. The current estimations of poverty are based upon the recommendations of this committee. This committee recommended to shift away from the calorie based model and made the poverty line somewhat broad based by considering monthly spending on education, health, electricity and transport also. It strongly recommended target nutritional outcomes i.e. instead of calories; intake nutrition support should be counted. The Tendulkar panel stipulated a benchmark daily per capita expenditure of Rs. 27 and Rs. 33 in rural and urban areas, respectively, and arrived at a cut-off of about 22% of the population below poverty line. However, this amount was such low that it immediately faced a backlash from all section of media and society.
C. Rangarajan Committee
Government appointed another committee under Prime Minister’s Economic Advisory Council Chairman C. Rangarajan to review the poverty estimation methodology. Rangarajan committee set PL limits to Rs. 32 and Rs. 47 in rural ad urban areas, respectively. However, this PL also did not assuage the critics. The new NDA Government turned down this report also.
By: Vishal ProfileResourcesReport error
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