In a significant move, prominent economists on Monday made a forceful plea to delink food entitlements from the “faulty” poverty measures put out by the Planning Commission. Asserting that under-nutrition was much more widespread in the country than income poverty “however defined,” the economists sought restoration of the universal Public Distribution System (PDS) “as the best way forward'' in combating hunger and poverty. “This is not only feasible within the available fiscal...

Planning Commission, RBI officials hold brainstorming deliberations with experts With the persistent near double-digit headline inflation, despite sustained increases in key policy rates by the Reserve Bank of India, turning out to be “a frustrating experience for policymakers,” senior officials from the Planning Commission, the Finance Ministry and the RBI met with a group of academic economic experts and representatives of the International Monetary Fund (IMF), the World Bank and the...

The Planning Commission’s latest affidavit to the Supreme Court in the right to food case reveals it has not taken the court’s advice to revise the thresholds and spending that determine the poverty line, although the commission admits to spiralling food costs and inflation. The affidavit was filed in a public interest litigation being pursued by the People’s Union for Civil Liberties, which wants the government’s threshold of Rs. 12 and...

-BBC   India's main planning body has said half a dollar a day is "adequate" for a villager to spend on food, education and health. Critics say that the amount fixed by the Planning Commission is extremely low and aimed at "artificially" reducing the number of poor who are entitled to state benefits. There are various estimates on the exact number of poor in India. Officially, 37% of India's 1.21bn people live below the poverty...

-The Hindu   Nothing is more reflective of the confusion and mix-up of priorities of the United Progressive Alliance government than the mismanagement of fuel pricing. While struggling to control inflation through monetary policy, the government sees no problem in allowing oil marketing companies to continually raise the price of petrol. The latest hike, by more than Rs.3 a litre, comes on top of the two substantial increases earlier this year. Although...