(a) whether the Union Government had considered certain suggestions on the issue of
estimation of poverty ratio of the Lakdawala Formula;
(b) if so, the details thereof; and
(c) the steps taken by the Union Government in this regard?
(a) whether the Union Government had considered certain suggestions on the issue of
estimation of poverty ratio of the Lakdawala Formula;
(b) if so, the details thereof; and
(c) the steps taken by the Union Government in this regard?
MINISTER OF STATE (INDEPENDENT CHARGE) OF THE DEPARTMENT OF
DISINVESTMENT, MINISTER OF STATE IN THE MINISTRIES OF PLANNING, STATISTICS
& PROGRAMME IMPLEMENTATION AND MINISTER OF STATE IN THE DEPARTMENT
OF ADMINISTRATIVE REFORMS, PUBLIC GRIEVANCES (SHRI ARUN SHOURIE)
(a): Yes, Sir.
(b): The Planning Commission has received representation from the State Governments of
Andhra Pradesh, Karnataka and Orissa in the matter of choice of the methodology of estimation of
poverty. The State Government of Andhra Pradesh and Karnataka urged that in estimating poverty
the impact of the price depressing effect of the food subsidy scheme, funded from the State
Exchequer, be eliminated. The Government of Andhra Pradesh at a later stage urged that estimates
be made on the earlier methodology of poverty estimation, known as the Task Force method. The
Government of Orissa has urged that the national level poverty line be adopted for estimating
poverty in the State.
(c): After carefully considering the representations, the Planning Commission has decided to
continue with the Expert Group methodology (Lakdawala formula). However, by eliminating the
impact of the state-sponsored food subsidy scheme, the Planning Commission has raised the poverty
ratio of Andhra Pradesh from 22.19% to 25.68% for exclusive use in the matter of allocation of
foodgrain under Targeted Public Distribution Scheme (TPDS).