Below Poverty Line

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Lingarajpuram, a poor village in India Lingarajpuram.JPG
Lingarajpuram, a poor village in India

Below Poverty Line is a benchmark used by the government of India to indicate economic disadvantage and to identify individuals and households in need of government assistance and aid. It is determined using various parameters which vary from state to state and within states. The present criteria are based on a survey conducted in 2002. Going into a survey due for a decade, India's central government is undecided on criteria to identify families below poverty line. [1]

Contents

Internationally, an income of less than ₹150 per day per head of purchasing power parity is defined as extreme poverty. By this estimate, about 12.4% of Indians are extremely poor. Income-based poverty lines consider the bare minimum income to provide basic food requirements; it does not account for other essentials such as health care and education. [2]

As there is no update of population estimate by the government since 2011, the data on poor people in India is not available. Estimates vary from 34 million to 373 million. [3]

Current method of population

Criteria are different for the rural and urban areas. In its Tenth Five-Year Plan, the degree of deprivation is measured with the help of parameters with scores given from 0–4, with 13 parameters. Families with 17 marks or less (formerly 15 marks or less) out of a maximum 52 marks have been classified as BPL. Poverty line solely depends on the per capita income in India rather than level of prices. [4] [5]

Five-Year Plans

In its Ninth Five-Year Plan (1995–2002), BPL for rural areas was set at annual family income less than Rs. 20,000, less than two hectares land, and no television or refrigerator. The number of rural BPL families was 650,000 during the 9th Plan. The survey based on this criterion was again carried out in 2002 and the total number of 387,000 families were identified. This figure was in force until September 2006. [4]

There were debates around the comparability of the 1999-2000 NSS data with the 2004-05 data, especially for the rural areas. Data showed a decline in poverty from 36% to 28%, but higher poverty rates in certain areas. Different groups proposed different methods of measuring poverty, but the Planning Commission chose the Tendulkar Committee's method that "updated the expenditure basket and revised the poverty line and consequently estimated the percentage of poor people in India at 37% or 435 million in 2004–05. [6]

In its Tenth Five-Year Plan (2002–2007) survey, BPL for rural areas was based on the degree of deprivation in respect of 13 parameters, with scores from 0–4: landholding, type of house, clothing, food security, sanitation, consumer durables, literacy status, labour force, means of livelihood, status of children, type of indebtedness, reasons for migrations, etc.

The Planning Commission fixed an upper limit of 326,000 for rural BPL families on the basis of a simple survey. Accordingly, families having less than 15 marks out of maximum 52 marks have been classified as BPL and their number works out to 318,000. The survey was carried out in 2002 and thereafter but could not be finalised due to a stay issued by the Supreme Court of India. The stay was vacated in February 2006 and this survey was finalised and adopted in September 2006. This survey formed the basis for benefits under Indian government schemes. The state governments are free to adopt any criteria/survey for state-level schemes. [4]

In its Tenth Five-Year Plan BPL for urban areas was based on degree of deprivation in respect of seven parameters: roof, floor, water, sanitation, education level, type of employment, and status of children in a house. A total of 125,000 upper families were identified as BPL in urban area in 2004. It has been implemented since then. [4]

Those spending over Rs 32 a day in rural areas and Rs 47 in towns and cities should not be considered poor, an expert panel headed by former RBI governor C Rangarajan said in a report submitted to the BJP. The recommendation has only raised the bar marginally.[ citation needed ]

Based on the Suresh Tendulkar panel's recommendations in 2011–12, the poverty line had been fixed at Rs 27 in rural areas and Rs 33 in urban areas, levels at which getting two meals may be difficult.

The Rangarajan committee was tasked with revisiting the Tendulkar formula for estimation of poverty and identification of the poor after a massive public outcry erupted over the abnormally low poverty lines fixed by UPA government

The case of Kerala

Beginning in the 1990s, the government of Kerala started utilizing a multidimensional approach to measuring poor households in the state. This method, called the Kerala method was developed by NGOs and then executed through the local governments called panchayats. This method employs nine parameters as core indicators, and eight more criteria to measure poverty in the state. The core indicators of poverty are related to housing, caste/tribe, source of income, presence of babies, presence of drug addicts, literacy, and sanitation in the household. The additional indicators are composed of socio-cultural factors unique to local regions. Each of the indicators are weighted unequally and severity of each is taken into account. This method was created by involving neighborhood groups called "ayalkoottangal". This approach is viewed as bottom-up because the local people were engaged in the creation of this approach and selection of indicators of poverty; this marked the Kerala method as more participatory than the BPL. [7]

In Kerala, there are nine parameters. Families which lack access to four or more parameters are classified as BPL.

The nine parameters for urban areas are:

Kerala experienced significant changes in its social welfare system for people living below the poverty line. Before 1997, nearly 95% of Kerala's families held a ration card and were able to reap the benefits of the Public Distribution System (PDS). The beneficiaries were 'equitably spread across income groups in both rural and urban areas.' Fair price shops were conveniently located in both urban and rural spaces, and 'no individual needed to walk more than 2 km' to access rice and wheat. The PDS system of Kerala was among the most effective in the entire nation and as a result, Kerala was among the top states in lowering overall poverty.

In 1997, the Indian government changed the PDS to focus on the poorest families; PDS became Targeted PDS. The government issued new cards to families living below the poverty line and restricted access to the fair price shops to the beneficiaries of the TDPS only. While the BPL counted 25% of Kerala's families as eligible for the PDS, the Kerala government identified 42% of the population as poor households and beneficiaries of the BPL. Due to this discrepancy, the state itself provided subsidies from its own budget. But due to the new schemes, constant changes and variance in prices led to confusion among the beneficiaries. With higher food prices for people living above the poverty line, many ration shops lost business.

Income based poverty line in India

The poverty line was originally fixed in terms of income/food requirements in 2000. It was stipulated that the calorie standard for a typical individual in rural areas was 2400 calorie and was 2100 calorie in urban areas. Then the cost of the grains (about 650 g) that fulfil this normative standard was calculated. This cost was the poverty line. In 1978, it was Rs. 61.80 per person per month for rural areas and Rs. 71.30 for urban areas. And Since then the Planning Commission calculates the poverty line every year adjusting for inflation. The poverty line in recent years is as follows – (Rs. per month per head)

YearIndia ruralIndia urban
2000–2001328454
2005–2006368558
2011–20128161000

This income is bare minimum to support the food requirements and does not provide much for the other basic essential items like health, education etc. That is why sometimes the poverty lines have been described as starvation lines. [4]

Fixing of cut-off marks at 17

The Socio Economic Survey conducted during 2002 was based on 13 Socio economic indicators (enlisted by Government of India ) indicating the quality of life and by Score-based ranking for all households. Each of the indicators have 0–4 marks. Thus for 13 indicators, the tentative marks obtained by the families are from 0–52 for all the Districts. The Supreme Court of India in Writ Petition No. 196/2001 filed by People's Union for Civil Liberties, the result of Below Poverty Line census 2002 need not be finalised. Later in October 2005 the Government of India informed that based on the advice given by the Additional Solicitor General, it has been decided to finalise the results of Below Poverty Line Census 2002 without deleting the Below Poverty Line families already existing in the Below Poverty Line list of Below Poverty Line Census 1997 and to follow the following procedure for finalisation of Below Poverty Line list.

  1. Preparation of Below Poverty Line list
  2. Approval in Gram Sabha
  3. Appeal to Block Development Officer and Collector.
  4. Display of Final List

The Government of India then decided that the Below Poverty Line list for 2002 could be finalised as per original guidelines. The Director of Rural Development and Panchayat Raj stated that in the Below Poverty Line survey done in 1991 out of 8,433,000 Rural families 3,446,000 families were identified as Below Poverty Line families. In the Below Poverty Line survey done in the year 1999 out of 9,388,000 rural families 2,737,000 families were identified as Below Poverty Line families. He has stated that if the cut off mark is fixed as 16 the total number of families would be 2,548,000 families against the total families of 8,665,000 which is lesser than the number of families indicated by Government of India viz. 2,677,000 families. If the cut off mark is fixed as 17 marks, then the total the number of Below Poverty line families would be 3,051,000. This is marginally above the number of families indicated by Government of India. i.e. 2,677,000 families. He has therefore recommended that the cut off marks to arrive at the number of Below Poverty Line families may be fixed at 17 so that no Below Poverty Line family gets left out of the list and requested orders of Government in this regard. The Government after detailed examination has decided to accept the proposal of the Director of Rural Development and Panchayat Raj and accordingly order to fix the cut off mark as 17 for identification of a family as Below Poverty Line family.8. The Director of Rural Development and Panchayat Raj is requested to take necessary further action for finalisation of Below Poverty Line List for rural areas of this state as per the procedure laid down by Government of India. [5]

BPL Beneficiaries

Certain groups, specifically those under Scheduled Castes (SC) and Scheduled Tribes (ST), suffer from exclusion in the poverty debates. While the National Sample Survey (NSS) data showed a decline in overall poverty from 36% in 1993–94 to 28% in 2004–05, the numbers told a different story for areas with tribal populations. The 2004-05 NSS also showed that "the average consumption of Adivasis (ST) was a mere 70% of the average, and that of Dalits (SC) less than 80% of the average." This census also showed that STs and SCs make up a large proportion of India's poor. The government's programmes for these groups tend to be executed not as strongly and also tend to progress very slowly. STs and SCs also suffer from displacement, caste-based violence and discrimination in education and employment. States hold the power to make special arrangements for these groups through "reserved seats" in educational institutions and special grants and scholarships. In addition, certain "income generation programs" along with financial organizations that provide coaching in "entrepreneurial skills" do exist for these groups. [8] A certain number of government jobs are set aside for these minority groups as well. A study found that in an area where member of SC/ST groups are assigned roles of leadership, more funds are allocated towards welfare programs. In other words, political representation of the poor makes a huge impact on allocation of resources. [9]

Other programs available for the beneficiaries of BPL include: Sarva Shikhsa Abhiyan (SSA), the National Rural Health Mission, National Rural Employment Guarantee. SSA works to bring education to children from poor families and incorporates community work and organization. The NRHM focuses on accessibility to health care in some of the poorest areas of India, and encourages education and uplifting of Adivasi and Dalit women. The NREG "implies a legal entitlement for every poor rural family to 100 days of work at the minimum wage, and aims to end food insecurity, empower village communities, and create assets". [8]

Criticism of BPL criteria

The National Sample Survey Office originally focused on capturing absolute poverty by looking at the per capita consumption as representative of the overall welfare of individuals. This left out factors that are involved in individual social and economic well-being. [10] These factors are the non-income dimensions of poverty – such as education, religious factors. gender related problems, and issues surrounding employment. [11] Although the measures of poverty in India show reduction in the numbers, the gap of inequality has actually increased among the rich and the poor; that is exactly why examining factors other than income are crucial to understanding the reality of both absolute and relative poverty. [11]

The BPL method employed to measure the number of people living in poverty in India takes food, clothing, housing, and sanitation into account along with literacy and labor status. This approach is top-down, meaning that officials in power decide what indicators to use and how much each indicator should weigh. This method is criticised to be exclusive of the people it is assessing, as it does not take their opinions into account. [7]

The food indicator of the BPL method counts the number of meals a family has and completely ignores the quality and nutritional factors. For instance, if an individual eats by begging on the street or picks up food from garbage, he or she still earns four points. There is an emphasis on school attendance as an indicator of better opportunities; quality of education and skills is ignored measuring poverty.

Physical and mental disability are also factors that the BPL does not take into account. As government records show, there are a total of 11.31 lakh disabled people in the state of Madhya Pradesh, 8.9 lakh of which live below the poverty line; yet only 3.8 lakh receive government help in the form of social security pension.

In order to become a beneficiary of the BPL and receive benefits like the Public Distribution System, the government requires identification documents and a permanent address. For families that are homeless and reside on pavements and parks, they have no means of obtaining ration cards and cheap food grains. They are essentially denied their rights as citizens and left vulnerable in a critical situation.

The BPL also does not count families that are affected by violence and crime and affected by conditions like HIV and leprosy. These families may be struggling to make ends meet but do not receive benefits of the BPL due to the criteria of the BPL. [6]

Marxist Communist party member and Social activist Mariam Dhavale, State secretary of the All India Democratic Women's Association (AIDWA), finds the criteria for determining BPL status puzzling and one that excludes the deserving.

If you have a pucca house, a two-wheeler, a fan… you are ineligible. The pucca house could have been in your family for generations and is not necessarily a reflection of your present situation. There was a government scheme once in which girls were given cycles to ensure they went to schools. Because the girls had a cycle they were not counted as BPL

Example of misuse of BPL Schemes

Corruption in the system allows those ineligible to gain benefits of the BPL status. A chain of corruption exists between the Government officer to the government appointed retailer resulting in grain and fuel been diverted to the black market [12]

In some places, it has been reported that for the sake of their votes, some corrupt MLA's and officials made government employees gain benefits under BPL scheme. An approach to combat corruption is to attempt linkage with Aadhar

New survey

Central Government took a departure from the earlier practice of getting surveys conducted by the rural development machinery of different State Governments, for identification of families below the poverty line. The earlier practice, of identifying a single set of target families for all developmental programmes, has been done away with. This was partly necessitated by an interim stay order given by the Supreme Court for 10th and 11th five year plans. The trend is now increasingly to have development schemes run on the principle of universalisation or saturation or self-selection. This means following a priority list for each scheme, rather than following a single list of identified families for all schemes. For example, the people who put in manual work under Mahatma Gandhi National Rural Employment Guarantee Act need not belong to families below the poverty line. Whoever is within the specified age bracket and is willing to get enrolled, can get covered. Similarly, the beneficiaries under National Food Security Act are identified by the State/UT Governments, with the ceiling/ coverage under TPDS determined for each State/UT by the central Government. This list of families can be different from the priority list used for rural housing programmes under Pradhan Mantri Awas Yojana (Grameen), which runs on the basis of whether a person has or does not have a pucca house, based on SECC survey of 2011. Similarly, the rural electrification programme Rajiv Gandhi Grameen Vidyutikaran Yojana had the concept of below poverty line families. But the new approach of Soubhagya scheme is to make no discrimination based on the poverty line, but to go on the basis of households that do not have electricity connection. In the maternity benefit scheme renamed as Pradhan Mantri Matru Vandana Yojana, there is automatic and universal coverage, without any mention of whether a pregnant woman is below the poverty line or not. ( See Ministry of Women and Child Development at http://www.wcd.nic.in/sites/default/files/PMMVY%20Scheme%20Implemetation%20Guidelines%20._0.pdf) However, there is still lack of clarity on fully integrating SECC data of 2011 with old age pension/ widow pension/ disability pension schemes. This is because the guidelines of National Social Assistance Programme still speak about list of families below the poverty line. (See http://nsap.nic.in/Guidelines/nsap_guidelines_oct2014.pdf) Thus, by and large, the present position is that while SECC database of 2011 provides a basic skeleton, each developmental scheme is now run independently based on the necessity, rather than getting bogged down to one single list of targeted families.

See also

Related Research Articles

<span class="mw-page-title-main">Poverty in India</span>

Poverty in India remains a major challenge despite overall reductions in the last several decades as its economy grows. According to an International Monetary Fund paper, extreme poverty, defined by the World Bank as living on US$1.9 or less in purchasing power parity (PPP) terms, in India was as low as 0.8% in 2019, and the country managed to keep it at that level in 2020 despite the unprecedented COVID-19 outbreak. According to World Bank, extreme poverty has reduced by 12.3% between 2011 and 2019 from 22.5% in 2011 to 10.2% in 2019. A working paper of the bank said rural poverty declined from 26.3% in 2011 to 11.6% in 2019. The decline in urban areas was from 14.2% to 6.3% in the same period.The poverty level in rural and urban areas went down by 14.7 and 7.9 percentage points, respectively. According to United Nations Development Programme administrator Achim Steiner, India lifted 271 million people out of extreme poverty in a 10-year time period from 2005–2006 to 2015–2016. A 2020 study from the World Economic Forum found "Some 220 million Indians sustained on an expenditure level of less than Rs 32 / day—the poverty line for rural India—by the last headcount of the poor in India in 2013."

<span class="mw-page-title-main">Measuring poverty</span> Overview about the measure of poverty

Poverty is measured in different ways by different bodies, both governmental and nongovernmental. Measurements can be absolute, which references a single standard, or relative, which is dependent on context. Poverty is widely understood to be multidimensional, comprising social, natural and economic factors situated within wider socio-political processes. The capabilities approach argues that capturing the perceptions of poor people is fundamental to understanding poverty.

Social security in India includes a variety of statutory insurances and social grant schemes bundled into a formerly complex and fragmented system run by the Indian government at the federal and the state level. The Directive Principles of State Policy, enshrined in Part IV of the Indian Constitution reflects that India is a welfare state. Food security to all Indians are guaranteed under the National Food Security Act, 2013 where the government provides highly subsidised food grains or a food security allowance to economically vulnerable people. The system has since been universalised with the passing of The Code on Social Security, 2020. These cover most of the Indian population with social protection in various situations in their lives.

<span class="mw-page-title-main">Public Distribution System (India)</span> Indian food security system

The Public Distribution System (PDS) is an Indian food security system that was established by the Government of India under the Ministry of Consumer Affairs, Food and Public Distribution to distribute food and non-food items to India's poor at subsidised rates. Major commodities distributed include staple food grains, such as wheat, rice, sugar and essential fuels like kerosene, through a network of fair price shops established in several states across the country. Food Corporation of India, a government-owned corporation, procures and maintains the PDS.

Uttar Pradesh food grain scam took place between years 2002 and 2010, in Uttar Pradesh state in India, wherein food grain worth 350 billion (US$4.4 billion), meant to be distributed amongst the poor, through Public Distribution System (PDS) and other welfare schemes like Antyodaya Anna Yojana (AAY), Jawahar Rozgar Yojana and Midday Meal Scheme for Below Poverty Line (BPL) card holders, was diverted to the open market. Some of it was traced to the Nepal and Bangladesh borders, as in 2010 security forces seized Rs 11.7 million worth of foodgrains like paddy and pulses being smuggled to Nepal, another Rs 6062,000 worth of grains were confiscated on the Indo-Bangladesh border.

<span class="mw-page-title-main">Rashtriya Swasthya Bima Yojana</span> Government-sponsored Health Insurance Programme in India

Rashtriya Swasthya Bima Yojana is a government-run health insurance programme for the Indian poor. The scheme aims to provide health insurance coverage to the unrecognised sector workers belonging to the BPL category and their family members shall be beneficiaries under this scheme. It provides for cashless insurance for hospitalisation in public as well as private hospitals. The scheme started enrolling on April 1, 2008 and has been implemented in 25 states of India. A total of 36 million families have been enrolled as of February 2014. Initially, RSBY was a project under the Ministry of Labour and Employment. Now it has been transferred to Ministry of Health and Family Welfare from April 1, 2015

<span class="mw-page-title-main">Pradhan Mantri Gramin Awas Yojana</span> Indian social welfare programme

Pradhan Mantri Gramin Aawas Yojana, previously Indira Awas Yojana, is a social welfare programme, created by the Indian Government, to provide housing for the rural poor in India. A similar scheme for urban poor was launched in 2015 as Housing for All by 2022. Indira Awas Yojana was launched in 1985 by Rajiv Gandhi, the Prime Minister of India, as one of the major flagship programs of the Ministry of Rural Development to construct houses for the Below Poverty Line population in the villages.

<span class="mw-page-title-main">National Health Mission</span> Public health initiative in India

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<span class="mw-page-title-main">National Social Assistance Scheme</span> Indian government centrally sponsored scheme

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Antyodaya Anna Yojana is the sponsored scheme of Government of India to provide highly subsidised food to millions of the poorest families. This scheme was developed by the then Union Food and Civil Supplies Minister, N Sri Vishnu. It was launched by the NDA government on 25 December 2000 and first implemented in the Indian state of Rajasthan.

<span class="mw-page-title-main">Ration card (India)</span> Ration Card

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<span class="mw-page-title-main">Pradhan Mantri Awas Yojana</span> Housing initiative in India

Pradhan Mantri Awas Yojana (PMAY) is a credit-linked subsidy scheme by the Government of India to facilitate access to affordable housing for the low and moderate-income residents of the country. It envisaged a target of building 2 crore (20 million) affordable houses by 31 March 2022. It has two components: Pradhan Mantri Awas Yojana(Urban) (PMAY-U) for the urban poor and Pradhan Mantri Awaas Yojana (Gramin) (PMAY-G and also PMAY-R) for the rural poor, the former administered by Ministry of Housing and Urban Affairs and the latter by Ministry of Rural Development. This scheme converges with other schemes to ensure that houses have a toilet, Saubhagya Scheme for universal electricity connection, Ujjwala Yojana LPG connection, access to drinking water and Jan Dhan banking facilities, etc.

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<span class="mw-page-title-main">Pradhan Mantri Ujjwala Yojana</span> Indian government energy scheme

Pradhan Mantri Ujjwala Yojana was launched by Prime Minister of India Narendra Modi on 1 May 2016 to distribute 50 million LPG connections to women of Below Poverty Line (BPL) families. A budgetary allocation of 80 billion (US$1.0 billion) was made for the scheme. The scheme was replaced by the Ujjwala Yojana 2.0 in 2021.

The Madhu Babu Pension Yojana(MBPY) is a pension scheme introduced in the Indian State of Odisha with the objective of providing financial assistance to destitute, elderly, and disabled individuals in the state.

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