The purpose of this piece is not to defend the Planning Commission on poverty figures but to indicate that the methodologies have evolved over time after considerable research and they are useful for policy purposes if not for linking with entitlement programmes (some of us have written earlier that the poor and vulnerable are more numerous than the commission's poverty figures and these should be delinked from entitlement programmes).  The commission...

Consumption-based measures don’t accurately estimate poverty Since the publication of poverty estimates purportedly based on the Tendulkar methodology and the 2009-10 consumption survey of the National Sample Survey Organisation (NSSO), many in Parliament and outside, from different political parties, have questioned its conclusions. Concomitantly, media reactions have speculated on poverty’s relationship with fertility, growth, specific schemes, et al. But, India’s poverty, like itself, refuses to classify itself in simple boxes. Beyond the...

Inequality in India is worsening and clearly following the US pattern India is a “relatively low-income inequality country” – to borrow an expression from a World Bank publication – when compared to China or Brazil, but there is no doubt that disparities have been widening of late. Planning Commission officials have admitted that inequality has risen in the first decade of the new millennium, although the factors responsible for it need...

One man’s fiscal problem is another man’s lifeline. Trigger happy bureaucrats and economists may love shooting down subsidies because it bloats the fiscal deficit and burdens the government but the simple fact is that in a one billion strong nation, in which nearly one in every three live below the poverty line, one needs an effective and efficient method through which privileged tax payers can support the poor. Last week, finance...

-The Business Standard Public discussion on falling poverty hits a new low The Lok Sabha was adjourned for a short duration on Wednesday following an uproar over the government’s latest figures for poverty. This follows widespread public outrage at those figures. A dispassionate observer of this discussion may be led to conclude that either poverty has risen dramatically or the government has somehow fudged the figures inexcusably and obviously. Elsewhere perhaps,...