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LATEST NEWS UPDATES | A grain of truth in what Gujarat says? Or a poverty of facts?

A grain of truth in what Gujarat says? Or a poverty of facts?

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published Published on Feb 4, 2014   modified Modified on Feb 4, 2014
-The Times of India


The Planning Commission periodically revises the poverty line at the all-India and state levels based on large household expenditure surveys of the National Sample Survey Organisation (NSSO). These are typically once in five years.

The figures of Rs 10.8 per capita per day in Gujarat's rural areas and Rs 16.7 in urban areas are based on the Planning Commission determined state-specific poverty line based on NSSO data for 1999-2000.

The Gujarat civil supplies department claims these figures were given to it by the Centre in a 2004 circular and there hasn't been an update to the circular since then. Hence, it argues, it is the Centre and not the state which is responsible for these numbers.

However, since that poverty line estimate, the Planning Commission has thrice put out revised estimates - for 2004-05, 2009-10 and 2011-12. The 2004-05 figure was based on the method recommended by Lakdavala Committee, which was being used at the time. According to that, Gujarat's poverty lines worked out to Rs 16.7 per person per day in rural areas and Rs 21.97 in urban areas.

The 2009-10 figures were based on a revised methodology recommended by the Tendulkar Committee and pegged Gujarat's poverty line at Rs 24.2 per person per day for rural areas and Rs 31.71 for urban areas.

The Tendulkar Committee-based poverty line estimates generated much controversy and so the Planning Commission appointed the Rangarajan Committee to come up with a fresh method of estimating poverty. The Committee's report is awaited.

In the meantime, NSSO carried out a large survey in 2011-12 since 2009-10 was judged to be an abnormal year because of drought in many parts of the country. Based on the existing Tendulkar formula, this yielded fresh poverty lines for 2011-12. According to these, Gujarat's rural poverty line was fixed at Rs 31.07 per person per day in rural areas and Rs 38.40 in urban areas.

The Gujarat civil supplies department could well have used these figures for determining the BPL population. While the Centre allocates subsidised grain under the public distribution system based on the Planning Committee estimates of how many households are poor in each state, states are free to identify beneficiaries according to what they determine and foot the extra bill if any.

Several states, like Kerala and Tamil Nadu run a universal PDS that covers the entire population using this freedom. Chhattisgarh too provides universal coverage under its PDS for grain. Gujarat could have done so too.


The Times of India, 4 February, 2014, http://timesofindia.indiatimes.com/india/A-grain-of-truth-in-what-Gujarat-says-Or-a-poverty-of-facts/articleshow/29833632.cms


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