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...

The wages under the government's flagship rural employment scheme have risen following adjustments for price rise, creating apprehension that this may add to the inflationary pressures by making farming more expensive.  The government had early last year benchmarked wages under the Mahatma Gandhi National Rural Employment Guarantee Act to retail inflation to ensure a real wage of Rs 100 a day to workers seeking employment under the scheme.  Under the first such...

The Budget provides proof of the United Progressive Alliance government having forgotten the importance of its own “flagship schemes”. BUDGET 2012-13 provides conclusive proof that the United Progressive Alliance (UPA) government has lost its way. It has managed the remarkable feat of upsetting almost everyone and making no one happy. The Budget is highly regressive in both taxation and spending terms and will raise prices of essentials, so aam aurat and...

-Economic and Political Weekly   Budget 2012, built yet again at the altar of fiscal fundamentalism, will not convince anybody. In this era of immediate assessment it took just a few minutes for the Union Budget for 2012-13 to be given one or the other negative appellation – “lacklustre”, “anti-growth”, “back to the 1980s”, “without reform” and the like. Such evaluations forget that union budgets have long since ceased to be statements of...

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...