While the government is spending thousands of crores of rupees in various welfare programmes, food subsidy and is even planning a food security law for the poor, the rural development ministry said poverty has come down in magnitude.
In a written reply to the Rajya Sabha, minister of state for rural development Pradeep Jain said that irrespective of the method used (old or new), the percentage of the population below poverty line has declined by about the same magnitude.
The minister gave comparative figures of government estimates and that of an expert committee headed by Suresh Tendulkar, which submitted its report in 2009, indicating the trend.
While official estimates show poverty declined from 36 per cent in 1993-94 to 27 per cent in 2004-05, the Tendulkar panel said poverty dropped from 45 per cent in 1993-94 to 37 per cent in 2004-05. However, this is incomplete variance with the poverty estimates of the Arjun Sengupta committee, which said over 70 per cent of people live on less than Rs 20/day and the NC Saxena committee, which said around 50 per cent of Indians were poor. Even some members of the National Advisory Council have suggested an increase in poverty. He told the RS that the data showed that whether the old method or the new methods are used to ascertain poverty, the percentage of the population below poverty line has declined by about the same magnitude.
The government plans to conduct a fresh BPL survey 2011 based on new methodologies of exclusion and inclusion, which it has worked out in consultation with the Planning Commission. Hitherto, all welfare programmes have been following the poverty estimates of 2004-05 given by the Planning Commission.
The need for fresh poverty estimates arise from the governments intention to both reach the genuine beneficiaries and reduce its increasing subsidy bill.