New Delhi:
The government today tried to recover from the poverty controversy - created after the Planning Commission said any family that spends Rs 32 a day cannot be categorised as Below the Poverty Line (BPL). "The allegation is being made that the Planning Commission is trying to understate poverty. This is simply not true," said Montek Singh Ahluwalia, who is the Deputy Chairperson of the Commission. "The Planning Commission doesn't think this represents a reasonable level for the
aam admi. This is the poverty line fixed at 1973-74, adjusted upwards. So this is clearly a rock-bottom level of existence," Mr Ahluwalia said, adding, "By focusing on the number, I think there was an attempt to embarrass the Planning Commission."
Fierce criticism from the Opposition, activists and sections of the government led to this detailed explanation today at a press conference held jointly by Mr Ahluwalia and Rural Development Minister Jairam Ramesh. The minister clarified that the poverty estimates of the Planning Commission will not be used to decide which households are eligible for government schemes intended to help the poor - subsidised food grains, for example.
"There is no link between state-wise poverty estimates as generated by the Planning Commission methodology and the selection of beneficiaries" of different government schemes, said Mr Ramesh. He pointed out that of his ministry's 100,000 crores of expenditure, this year, he said, only nine per cent depends on the identification of BPL households.
(Read the full text of the joint statement)Mr Ramesh said that a socio-economic caste census of rural households will be completed by January. Between now and then, he said, the Planning Commission and the Ministry of Rural Development will set up an expert committee to consult with states, civil society organisations and other experts to find a formula "which ensures that no poor and deprived household is excluded from government benefits." Mr Ahluwalia reinforced that message, so critical ahead of elections in important states like Uttar Pradesh. "The Planning Commission has never said that benefits should be restricted to the definition of Below the Poverty line (BPL) families. Some schemes should be universal entitlements." But he also said that the Planning Commission stands by the estimates and figures it shared in court.
Both men were quick to stress that the Right to Food is exempt from these estimates, and is based on the recommendations of the experts who form the National Advisory Council (NAC), which is headed by Sonia Gandhi. Mr Ahluwalia said that the NAC's proposal gives highly-subsidised food to 41 per cent of the population, and seeks to help more families than just BPL households. In this case, he said, the formula has been based on "Priority Households," rather than conventional definitions provided by Below Poverty Line or Above Poverty Line calculations.
In an affidavit filed with the Supreme Court last month, the Planning Commission declared that the poverty line was drawn at Rs 32 a day for the urban poor and Rs 26 a day for the rural poor. "The allegation is being made that the Planning Commission is trying to understate poverty. This is simply not true," said Mr Ahluwalia.