The fracas over R32 per day was amusing and sad. Obviously, none of the journalists and politicians had known that the level used to be even lower in previous years. In 2004-05, the level was R552 per person per month for an urban person and R363 for rural. So, that is about R17.5 (R12) per day. The stylised anger only revealed that India’s elite may protest about poverty but they...

The Government is finalising the blueprint for a scheme to enable a vast majority of the urban poor to own a house.   The housing and urban poverty alleviation (HUPA) ministry has proposed to stand in as guarantor for home loans up to Rs 5 lakh. Under the scheme, banks would be reimbursed up to 90 per cent in case the poor default on these loans. The scheme, targeting those earning less than...

The underlying assumption of the proposed Land Acquisition Bill seems that the price paid to farmers is unreasonably low due to dominant power of industrial buyers, requiring government intervention. The draft, however, may neither accelerate the pace of land acquisition for industry nor overcome the psychological barriers of landowners that impede land transfers. First, the psychological barriers that limit supply. One of the main reasons for the farmers’ (and land dependents’)...

The Planning Commission's laughable estimates of the ‘poverty line' follow from a mistake in method that it made 30 years ago and has clung to ever since. The affidavit that the Planning Commission recently submitted before the Supreme Court stating that a person is to be considered ‘poor' only if his or her monthly spending is below Rs.781 (Rs.26 a day) in the rural areas and Rs.965 (Rs.32 a day) in...

Though it remains susceptible to leakages and can do with greater oversight, the National Rural Employment Guarantee scheme (NREGS) appears to have boosted rural incomes by providing job seekers at least 100 days' guaranteed labour every financial year. That's why the Union rural development ministry's reported advisory to states to 'informally' suspend NREGS operations during peak farming season isn't a very good idea. For starters, the move would be legally...