Panel to suggest new poverty line

The Ministry of Rural Development is likely to form a new panel to determine the poverty line or families living under Below Poverty Line (BPL) in the country.

As deciding the criteria for identifying BPL families is crucial for implementation of the pro-poor programmes, the ministry hopes to resolve the long standing issues related to it by the new panel.

Though the earlier the government constituted two separate panels, headed by S D Tendulkar and N C Saxena, later their reports were rejected after strong protests from various political parties.

It may be noted that when the Planning Commission’s estimates, based on the Tendulkar Committee methodology, people consuming more than Rs 28.65 per day in cities and Rs 22.42 in rural areas are not considered poor, it turned into a big issue.  

After the demand for rejecting the report, the plan panel set up an experts group headed by noted economist C Rangarajan to review the Tendulkar Committee methodology for estimating poverty.

As the Centre is planning to bring food security bill this financial year, determining the poverty line is most important. Sources in the Rural Development Ministry told Deccan Herald that the new panel will address issues related to identifying the poor families in the country.