Poverty line low, need to revisit methodology, says Ahluwalia

Seeking to distance himself from latest poverty estimates, Plan panel deputy chief Montek Singh Ahluwalia today said they are based on methodology recommended by an expert group and there is a need to improve it.
"The Tendulkar (committee methodology) numbers show about 22 per cent as poor (in the country). I am perfectly willing to agree that, that (poverty) line is a bit low," Ahluwalia said in an interview to NDTV-24X7.
About doubts raised within the Congress party against the controversial poverty line, he said, "Kapil (Sibal) has said that the present system is abstract and even we should improve it. Even we agree to that."

According to the latest estimates of the Planning Commission, the poverty ratio, or population of poor in the country, declined to 21.9 per cent in 2011-12 from 37.2 per cent in 2004-05 due to an increase in per capita consumption.
The Commission used the Suresh Tendulkar Committee's methodology, which factors in spending on health and education besides calorie intake to arrive at a poverty line for cities and villages. Accordingly, those whose daily consumption of goods and services exceed Rs 33.33 in cities and Rs 27.20 in villages are not poor.
Ahluwalia said, "This is not the Planning Commission's (poverty) line. Poverty line is not drawn by the Planning Commission. It is actually drawn by an expert group. The line you are talking about is a line recommended by the Suresh Tendulkar expert committee."

An earlier use of the Tendulkar methodology by the Commission to determine the poverty line had also raked up a controversy.
After that, a committee was appointed under Prime Minister's Economic Advisory Council Chairman C Rangarajan to revisit the methodology for tabulating poverty. The Committee is expected to submit its report by mid 2014.