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 Planning Commission had released a report, yesterday indicating reduced poverty line to Rs 28.65 per capita daily consumption in cities and Rs 22.42 in rural areas, scaling down India’s poverty ratio from 37.2 percent to 29.8 percent in 2009-10. Firstpost did an interview with Abhijit Sen, Member, Planning Commission. Here are excerpts from the interview: When we say there is a 7.3 percentage points (from 37.2 percent in 2004-05 to 29.8...

-The Economic Times Data released by the Planning Commission on Monday showed that poverty had significantly declined between 2004-05 and 2009-10. The catch is that this decline is based on a poverty line that is even lower than the earlier Rs 32-per-day mark that had triggered an outrage when the government submitted it to the Supreme Court.  The new estimates are based on a poverty line that averages Rs 672.8 per month...

The common man, whose concerns were at the heart of the Congress-led United Progressive Alliance’s two successful election campaigns, doesn’t seem to be the focus of finance minister Pranab Mukherjee’s budget. Experts and political analysts say the aam admi doesn’t appear to be the dominant concern anymore, prompting speculation about Congress party chief Sonia Gandhi’s role. She has thus far been setting the UPA’s social agenda through the National Advisory Council...

Sounding a note of caution, the Economic Survey has stressed that for “growth to be inclusive” India must create adequate employment opportunities—a call that underlines existing inequality, including urban-rural income disparity, and concern that it may increase as more young people enter the job market. While India’s unemployment rate has dropped from 8.2% in 2004-05 to 6.6% in 2009-10, the number of jobless is still huge in absolute terms. The...