In the first part of this article we
discussed some basic concepts about poverty and poverty line. In this part we
will discuss methodology and recommendations of the Tendulkar Committee and the
data regarding poverty estimates presented by the Planning Commission for the
year 2011-12. As per these estimates All
India poverty lines have been drawn at Rs.1000/- per capita per month for urban
areas and Rs.816/- per capita per month for rural areas. The percentage of
people below poverty line has been estimated to be 25.7% in rural areas, 13.7%
in urban areas and 21.9% for the country as a whole. The number of people below
poverty line was estimated to be about 27 crores.
Report of Tendulkar Committee
Tendulkar Committee perceived consumption
poverty as the inability of the individual or household to satisfy a minimum
basket of basic human needs that is expected to be reflected in some normative
standard of living that should be assured to each individual/household. This is
reflected through a poverty line basket (PLB). The PLB suggested by the
Tendulkar Committee comprises of food items, fuel, clothing, footwear, education,
medical expenses, entertainment and other foods and services. The Committee
also suggested shares of various components in the consumption. For example in
urban PLB cereal comprises 16.7% of the expenditure, milk 7.5%, edible oil 5%,
sugar 2.3%, salt and spices 2.5%, fuel 12.2%, clothing 6.6%, education 3.2% and
medical (institutional and non institutional) at 3.5%.
The Committee calculated indexes
statewise for both rural and urban areas. The Index for food, clothing, fuel,
intoxicants and footwear was calculated on the basis of the expenditure
incurred on a bundle of commodities some of which like wheat, rice, kerosene
and sugar were considered to be provided through PDS. Index for cost of
education per child and Index for cost for health facilities were calculated
separately. On the basis of these indices, the Committee calculated an
aggregate index and also calculated the poverty line as well as poverty percentage
or the poverty Head Count Ratio for 2004-05. Calculations were made separately
for all the states as well as the rural and urban areas. Poverty line and
poverty Head Count Ratio were also calculated for All India for both rural and
urban areas. For the year 2004-05, All India poverty lines were Rs.446.68 for
rural areas and Rs.578.8 for urban areas. Poverty Head Count Ration for 2004-05
was 41.8% for rural areas and 25.7% for urban areas. The Committee also
provided methodology for updating these poverty lines and Head Count Ratio.
Recent Data
The present data fixes urban poverty
line at Rs.1000/- per capita per month and rural poverty line at Rs.816/- per
capita per month. On daily basis, these translate into Rs.33/- per day per
person for urban areas and Rs.27/- per day per person for rural areas. These
figures have been stated to be impractical. The figures have drawn wide
criticism as being insensitive and impractical as the media repeatedly points
out that it is not possible to have a single meal in the city in this amount.
However, media statements do not
always present the entire picture. An objective analysis of the present data would
indicate that these figures are not that much far from reality as are being
made out. The Planning Commission while presenting the estimates had stated
that though daily figures could be worked out for arithmetical purposes, these
figures are for a complete month and should be treated as such.
Let us consider the data in the
light of this statement. For an example, cereals form 16.7% of the total
expenditure for urban poor. For Rs.33/- the proportion comes to a little more
than Rs.5/- which appears illogical, but when we consider it for the whole
month, the per capita expenditure on cereals comes to Rs.167/- which makes some
sense. It makes more sense when the figures are considered for a family of
five, in which case expenditure on cereals for the family comes to Rs.835/-. This
figure would seem reasonable, particularly after considering the fact that a
major part of the requirement of cereals for these families is met through PDS
which provides an APL (Above Poverty Line) family at about Rs.7 per Kg and rice
at Rs.10 per Kg. Rates for BPL (Below Poverty Line) families are even lower. Similarly,
a number of services like medical treatment and education are either being
provided by the Government free or at highly subsidized rates which reduce
expenditure on this account.
It could be said that only those
items are in comfort zone which are provided in some way through Government
agencies. In commodities which are to be procured from the open market, the
situation is not that comfortable. This is true, but then, poverty line is not
about a comfortable life, it is about sustenance, though a humane and dignified
one. It is a tool to segregate, that section of people which does not have even
those levels of income which could provide them basic amenities of life. Quite
reasonably, this group needs to be segregated for providing support through
various welfare schemes.
One could argue that those
marginally above these poverty lines are also in need of welfare schemes. This
could again be very well be true but the question is who should be first
beneficiary of any welfare schemes. Priority should start from the bottom. The
most vulnerable and most deprived should be first beneficiaries. As per the
present data, population below poverty line comprises 21.9% of the population.
These people do not even have the income corresponding to the said poverty
lines and it is reasonably fair that such people get the benefit of the welfare
schemes in the first instance. Hence, the debate on quantification of poverty
lines becomes irrelevant, particularly in view of the fact that the Rangarajan committee
has already been constituted to revisit the issue. It would have been more
fruitful if the debate had centered on ways to ameliorate the conditions of
those below poverty line even by these standards.
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