[India] Economic Survey doubts study on poverty rate

from SIFY Business

Stating that it was too early to tell whether decline in poverty met the targets set in the 10th Plan, the Economic Survey today said it doubted the findings of an official study about decline in poverty rate as there was some controversy over the methodology.

"The comparability and the extent of actual decline were matters of some controversy due to a change in the methodology for data collection in 1999-2000," the Survey said, referring to the National Sample Survey Organisation’s (NSSO) data collection process. | Railway Budget 2006 |

There has been intense debate among academicians regarding the extent of actual incidence in people below poverty line between 1993-99 and 1999-2000.

Citing NSSO data, the Survey said there has been an impressive decline in poverty from 36 per cent in 1993-94 to 26.1 per cent in 1999-2000, and the trend would continue with sustained growth and increase in public sector spending on social sector programmes like National Rural Employment Guarantee scheme. |Go to Sify Business Home Page|

"The combined effects of economic growth and measures of direct interventions for poverty alleviation have translated into impressive decline in the incidence of poverty in the recent past," the Survey tabled in Parliament today said.

A "permanent dent" on the incidence of unemployment and poverty would be made through extension of the NREGP programme to the whole country in the next five years, effective implementation of the Right to Information Act and accountability through decentralised Panchyati Raj Institutions, it added.