Montek says, set up new panel to measure poverty

After facing much criticism regarding the controversial methodology for measuring poverty, now planning commission has decided to set up a technical committee to look into the matter. Planning commission Deputy Chairman Montek Singh Ahluwalea has announced in the regards.

Ahluwalia said that there was a need to have a multi-dimensional approach to measuring poverty. The prime minister himself said that this poverty line is only linked to consumption but poverty may not just have to do with consumption but also with running water connection, pucca or kutcha house and you could have two or three other dimensions of poverty, he added.

He said that the poverty line definition at Rs. 28.65 daily consumption would not be linked with the benefits under various social sector schemes of the govt.

According to the commission, poverty ratio, based on the Tendulkar committee formula, has declined to 29.8 percent in 2009-10, from 37.2 percent in 2004-05.

However, the commission has come under criticism for arriving at this figure on the basis of per capita daily consumption of Rs.28.65 in cities and Rs.22.42 in rural areas.

However Ahluwalia reiterated that the poverty ratio has come down by whatever method of calculation adopted, criticism was due to theunwillingness to accept the fact that the growth we have witnesses is more inclusive than earlier.

(With inputs form IANS)