Below Poverty Line
Encyclopedia
Below Poverty Line is an economic benchmark
and poverty threshold
used by the government of India
to indicate economic disadvantage and to identify individuals and households in need of government assistance and aid. It is determined using various parameters which vary from state
to state and within states. The present criteria are based on a survey conducted in 2002. Going into a survey due for a decade, India's central government is undecided on criteria to identify families below poverty line.
is defined as extreme poverty
. By this estimate, about 40% percent of Indians are extremely poor. Income-based poverty lines consider the bare minimum income
to provide basic food
requirements; it does not account for other essentials such as health care
and education
. That is why some times the poverty lines have been described as starvation lines.
The poverty line in United States
is fixed in terms of annual family income. In 1969, the requirements of family in terms of food were worked out with reference to 1963 prices, and it was found that a family of four would require $1,033 annually to meet the food requirement. The study revealed that families in that income spent nearly one-third of their income on food, and therefore the poverty line for a four-person family was fixed as $3,099 annually. The poverty line is revised annually, adjusting for inflation
. For the year 2006 it was $20,650 for a four-person family.
less than Rs.
20,000, less than two hectare
s land, and no television
or refrigerator
. The number of rural BPL families was 650,000 (6.5 lakh
) during the 9th Plan. The survey based on this criterion was again carried out in 2002 and the total number of 387,000 (3.87 lakh) families were identified. This figure was in force until September 2006.
, clothing
, food security
, sanitation
, consumer durables, literacy
status, labour force, means of livelihood
, status of children, type of indebtedness, reasons for migrations
, etc.
The Planning Commission fixed an upper limit of 3.26 lakh for rural BPL families on the basis of simple survey. Accordingly families having less than 15 marks out of maximum 52 marks have been classified as BPL and their number works out to 3.18 lakh. The survey was carried out in 2002 and thereafter but could not be finalised due to a stay
issued by the Supreme Court of India
. The stay was vacated
in February 2006 and this survey was finalised and adopted in September 2006. This survey formed the basis for benefits under government of India schemes. The state governments are free to adopt any criteria/survey for state-level schemes.
In its Tenth Five-Year Plan BPL for urban areas was based on degree of deprivation in respect of seven parameters: roof
, floor
, water, sanitation, education level, type of employment, and status of children in a house. A total of 1.25 lakh upper families were identified as BPL in urban area in 2004. It has been implemented since then.
is one of the few state governments
which has formulated its own criteria.
In Kerala there are nine parameters. Family which lack access to four or more parameters are classified as BPL.
The nine parameters for urban areas are:
The nine parameters for rural areas are the same, but the colour television criterion is replaced by "family with an illiterate
adult member" criterion.
and was 2100 calorie in urban areas. Then the cost of the grains (about 650 gms) that fulfil this normative standard was calculated. This cost was the poverty line. In 1978, it was Rs. 61.80 per person per month for rural areas and Rs. 71.30 for urban areas. Since then the Planning Commission calculates the poverty line every year adjusting for inflation. The poverty line in recent years is as follows -
(Rs. per month per head)
This income is bare minimum to support the food requirements and does not provide much for the other basic essential items like health, education etc. That is why some times the poverty lines have been described as starvation lines.
indicators (enlisted by Government of India ) indicating the quality of life and by Score based ranking for all households. Each of the indicators have 0-4 marks. Thus for 13 indicators, the tentative marks obtained by the families are from 0-52 for all the Districts. The Supreme Court of India
in Writ Petition No. 196/2001 filed by People's Union for Civil Liberties
, the result of Below Poverty Line census 2002 need not be finalized. Later in October, 2005 the Government of India informed that based on the advice given by the Additional Solicitor General
, it has been decided to finalise the results of Below Poverty Line Census 2002 without deleting the Below Poverty Line families already existing in the Below Poverty Line list of Below Poverty Line Census 1997 and to follow the following procedure for finalisation of Below Poverty Line list.
The Government of India then decided that the Below Poverty Line list for 2002 could be finalized as per original guidelines. The Director of Rural Development and Panchayat Raj stated that in the Below Poverty Line survey done in 1991 out of 84.33 lakh Rural families 34.46 lakh families were identified as Below Poverty Line families. In the Below Poverty Line survey done in the year 1999 out of 93.88 lakh rural families 27.37 lakh families were identified as Below Poverty Line families. He has stated that if the cut off mark is fixed as 16 the total number of families would be 25.48 lakhs
families against the total families of 86.65 lakhs which is lesser than the number of families indicated by Government of India viz. 26.77 lakh families. If the cut off mark is fixed as 17 marks, then the total the number of Below Poverty line families would be 30.51 lakhs. This is marginally above the number of families indicated by Government of India. i.e. 26.77 lakhs families. He has therefore recommended that the cut off marks to arrive at the number of Below Poverty Line families may be fixed at 17 so that no Below Poverty Line family gets left out of the list and requested orders of
Government in this regard. The Government after detailed examination has decided to accept the proposal of the Director of Rural Development and Panchayat Raj and accordingly order to fix the cut off mark as 17 for identification of a family as Below Poverty Line family.8. The Director of Rural Development and Panchayat Raj is requested to take necessary
further action for finalization of Below Poverty Line List for rural areas of this state as per the procedure laid down by Government of India.
families BPL. Madia Gond are a people classified as primitive tribe, they live in Bhamragad Taluka, of Gadchiroli District
, of Maharashtra
.
Economic indicator
An economic indicator is a statistic about the economy. Economic indicators allow analysis of economic performance and predictions of future performance. One application of economic indicators is the study of business cycles....
and poverty threshold
Poverty threshold
The poverty threshold, or poverty line, is the minimum level of income deemed necessary to achieve an adequate standard of living in a given country...
used by the government of India
Government of India
The Government of India, officially known as the Union Government, and also known as the Central Government, was established by the Constitution of India, and is the governing authority of the union of 28 states and seven union territories, collectively called the Republic of India...
to indicate economic disadvantage and to identify individuals and households in need of government assistance and aid. It is determined using various parameters which vary from state
States and territories of India
India is a federal union of states comprising twenty-eight states and seven union territories. The states and territories are further subdivided into districts and so on.-List of states and territories:...
to state and within states. The present criteria are based on a survey conducted in 2002. Going into a survey due for a decade, India's central government is undecided on criteria to identify families below poverty line.
International Benchmarks
Internationally, an income of less than $1.25 per day per head of purchasing power parityPurchasing power parity
In economics, purchasing power parity is a condition between countries where an amount of money has the same purchasing power in different countries. The prices of the goods between the countries would only reflect the exchange rates...
is defined as extreme poverty
Extreme poverty
Extreme poverty, as defined in 1996 by Joseph Wresinski, the founder of ATD Fourth World, is:"The lack of basic security connotes the absence of one or more factors enabling individuals and families to assume basic responsibilities and to enjoy fundamental rights. The situation may become...
. By this estimate, about 40% percent of Indians are extremely poor. Income-based poverty lines consider the bare minimum income
Income
Income is the consumption and savings opportunity gained by an entity within a specified time frame, which is generally expressed in monetary terms. However, for households and individuals, "income is the sum of all the wages, salaries, profits, interests payments, rents and other forms of earnings...
to provide basic food
Food
Food is any substance consumed to provide nutritional support for the body. It is usually of plant or animal origin, and contains essential nutrients, such as carbohydrates, fats, proteins, vitamins, or minerals...
requirements; it does not account for other essentials such as health care
Health care
Health care is the diagnosis, treatment, and prevention of disease, illness, injury, and other physical and mental impairments in humans. Health care is delivered by practitioners in medicine, chiropractic, dentistry, nursing, pharmacy, allied health, and other care providers...
and education
Education
Education in its broadest, general sense is the means through which the aims and habits of a group of people lives on from one generation to the next. Generally, it occurs through any experience that has a formative effect on the way one thinks, feels, or acts...
. That is why some times the poverty lines have been described as starvation lines.
The poverty line in United States
Poverty in the United States
Poverty is defined as the state of one who lacks a usual or socially acceptable amount of money or material possessions. According to the U.S. Census Bureau data released Tuesday September 13th, 2011, the nation's poverty rate rose to 15.1% in 2010, up from 14.3% in 2009 and to its highest level...
is fixed in terms of annual family income. In 1969, the requirements of family in terms of food were worked out with reference to 1963 prices, and it was found that a family of four would require $1,033 annually to meet the food requirement. The study revealed that families in that income spent nearly one-third of their income on food, and therefore the poverty line for a four-person family was fixed as $3,099 annually. The poverty line is revised annually, adjusting for inflation
Inflation adjustment
Inflation adjustment is the process of adjusting economic indicators and the prices of goods and services from different time periods to the same price level. To adjust for inflation, an indicator is divided by the inflation index...
. For the year 2006 it was $20,650 for a four-person family.
Measurement
Criteria are different for rural and urban areas. In its Tenth Five-Year Plan, the degree of deprivation is measured with the help of parameters with scores given from 0-4, with 13 parameters. Families with 17 marks or less (formerly 15 marks or less) out of a maximum 52 marks have been classified as BPL.Ninth Plan
In its Ninth Five-Year Plan (1997–2002), BPL for rural areas was set at annual family incomeFamily income
Family income is generally considered a primary measure of a nation's financial prosperity.In the United States, political parties perennially disagree over which economic policies are more likely to increase family income. The party in power often takes the credit for any significant changes in...
less than Rs.
Indian rupee
The Indian rupee is the official currency of the Republic of India. The issuance of the currency is controlled by the Reserve Bank of India....
20,000, less than two hectare
Hectare
The hectare is a metric unit of area defined as 10,000 square metres , and primarily used in the measurement of land. In 1795, when the metric system was introduced, the are was defined as being 100 square metres and the hectare was thus 100 ares or 1/100 km2...
s land, and no television
Television
Television is a telecommunication medium for transmitting and receiving moving images that can be monochrome or colored, with accompanying sound...
or refrigerator
Refrigerator
A refrigerator is a common household appliance that consists of a thermally insulated compartment and a heat pump that transfers heat from the inside of the fridge to its external environment so that the inside of the fridge is cooled to a temperature below the ambient temperature of the room...
. The number of rural BPL families was 650,000 (6.5 lakh
Lakh
A lakh is a unit in the Indian numbering system equal to one hundred thousand . It is widely used both in official and other contexts in Pakistan, Bangladesh, India, Maldives, Nepal, Sri Lanka, Myanmar and is often used in Indian English.-Usage:...
) during the 9th Plan. The survey based on this criterion was again carried out in 2002 and the total number of 387,000 (3.87 lakh) families were identified. This figure was in force until September 2006.
Tenth Plan (2002-2007)
In its Tenth Five-Year Plan (2002–2007) survey, BPL for rural areas was based on the degree of deprivation in respect of 13 parameters, with scores from 0-4: landholding, type of houseHouse
A house is a building or structure that has the ability to be occupied for dwelling by human beings or other creatures. The term house includes many kinds of different dwellings ranging from rudimentary huts of nomadic tribes to free standing individual structures...
, clothing
Clothing
Clothing refers to any covering for the human body that is worn. The wearing of clothing is exclusively a human characteristic and is a feature of nearly all human societies...
, food security
Food security
Food security refers to the availability of food and one's access to it. A household is considered food-secure when its occupants do not live in hunger or fear of starvation. According to the World Resources Institute, global per capita food production has been increasing substantially for the past...
, sanitation
Sanitation
Sanitation is the hygienic means of promoting health through prevention of human contact with the hazards of wastes. Hazards can be either physical, microbiological, biological or chemical agents of disease. Wastes that can cause health problems are human and animal feces, solid wastes, domestic...
, consumer durables, literacy
Literacy
Literacy has traditionally been described as the ability to read for knowledge, write coherently and think critically about printed material.Literacy represents the lifelong, intellectual process of gaining meaning from print...
status, labour force, means of livelihood
Livelihood
A person's livelihood referers to "means of securing the necessities of life". For instance a fisherman's livelihood depends on the availability and accessibility of fish.- In social sciences :...
, status of children, type of indebtedness, reasons for migrations
Human migration
Human migration is physical movement by humans from one area to another, sometimes over long distances or in large groups. Historically this movement was nomadic, often causing significant conflict with the indigenous population and their displacement or cultural assimilation. Only a few nomadic...
, etc.
The Planning Commission fixed an upper limit of 3.26 lakh for rural BPL families on the basis of simple survey. Accordingly families having less than 15 marks out of maximum 52 marks have been classified as BPL and their number works out to 3.18 lakh. The survey was carried out in 2002 and thereafter but could not be finalised due to a stay
Stay of proceedings
A stay of proceedings is a ruling by the court in civil and criminal procedure, halting further legal process in a trial. The court can subsequently lift the stay and resume proceedings. However, a stay is sometimes used as a device to postpone proceedings indefinitely.-United Kingdom:In United...
issued by the Supreme Court of India
Supreme Court of India
The Supreme Court of India is the highest judicial forum and final court of appeal as established by Part V, Chapter IV of the Constitution of India...
. The stay was vacated
Vacated judgment
A vacated judgment makes a previous legal judgment legally void. A vacated judgment is usually the result of the judgment of an appellate court which overturns, reverses, or sets aside the judgment of a lower court....
in February 2006 and this survey was finalised and adopted in September 2006. This survey formed the basis for benefits under government of India schemes. The state governments are free to adopt any criteria/survey for state-level schemes.
In its Tenth Five-Year Plan BPL for urban areas was based on degree of deprivation in respect of seven parameters: roof
Roof
A roof is the covering on the uppermost part of a building. A roof protects the building and its contents from the effects of weather. Structures that require roofs range from a letter box to a cathedral or stadium, dwellings being the most numerous....
, floor
Floor
A floor is the walking surface of a room or vehicle. Floors vary from simple dirt in a cave to many-layered surfaces using modern technology...
, water, sanitation, education level, type of employment, and status of children in a house. A total of 1.25 lakh upper families were identified as BPL in urban area in 2004. It has been implemented since then.
Kerala
The government of KeralaGovernment of Kerala
The Government of Kerala is a democratically elected body that governs the State of Kerala, India for a period of 5 years. The state government is headed by the Governor of Kerala as the nominal head of state, with a democratically elected Chief Minister as real head of the executive. The state...
is one of the few state governments
States and territories of India
India is a federal union of states comprising twenty-eight states and seven union territories. The states and territories are further subdivided into districts and so on.-List of states and territories:...
which has formulated its own criteria.
In Kerala there are nine parameters. Family which lack access to four or more parameters are classified as BPL.
The nine parameters for urban areas are:
- No land or less than five cents of land
- No house or dilapidated house
- No sanitationSanitationSanitation is the hygienic means of promoting health through prevention of human contact with the hazards of wastes. Hazards can be either physical, microbiological, biological or chemical agents of disease. Wastes that can cause health problems are human and animal feces, solid wastes, domestic...
latrineLatrineA latrine is a communal facility containing one or more commonly many toilets which may be simple pit toilets or in the case of the United States Armed Forces any toilet including modern flush toilets... - Family without colour television
- No regular employed person in the family
- No access to safe drinking waterDrinking waterDrinking water or potable water is water pure enough to be consumed or used with low risk of immediate or long term harm. In most developed countries, the water supplied to households, commerce and industry is all of drinking water standard, even though only a very small proportion is actually...
- Women-headed household or presence of widows or divorcee
- Scheduled castes and scheduled tribes (SC/ST)
- Mentally retardedMental retardationMental retardation is a generalized disorder appearing before adulthood, characterized by significantly impaired cognitive functioning and deficits in two or more adaptive behaviors...
or disabledDisabilityA disability may be physical, cognitive, mental, sensory, emotional, developmental or some combination of these.Many people would rather be referred to as a person with a disability instead of handicapped...
member in the family
The nine parameters for rural areas are the same, but the colour television criterion is replaced by "family with an illiterate
Literacy
Literacy has traditionally been described as the ability to read for knowledge, write coherently and think critically about printed material.Literacy represents the lifelong, intellectual process of gaining meaning from print...
adult member" criterion.
Income based poverty line in India
The poverty line was originally fixed in terms of income/food requirements in 1978. It was stipulated that the calorie standard for a typical individual in rural areas was 2400 calorieCalorie
The calorie is a pre-SI metric unit of energy. It was first defined by Nicolas Clément in 1824 as a unit of heat, entering French and English dictionaries between 1841 and 1867. In most fields its use is archaic, having been replaced by the SI unit of energy, the joule...
and was 2100 calorie in urban areas. Then the cost of the grains (about 650 gms) that fulfil this normative standard was calculated. This cost was the poverty line. In 1978, it was Rs. 61.80 per person per month for rural areas and Rs. 71.30 for urban areas. Since then the Planning Commission calculates the poverty line every year adjusting for inflation. The poverty line in recent years is as follows -
(Rs. per month per head)
| Year | India rural | India urban |
|---|---|---|
| 2000–2001 | 328 | 454 |
| 2005–2006 | 368 | 560 |
This income is bare minimum to support the food requirements and does not provide much for the other basic essential items like health, education etc. That is why some times the poverty lines have been described as starvation lines.
Fixing of cut-off marks at 17
The Socio Economic Survey conducted during 2002 was based on 13 Socio economicindicators (enlisted by Government of India ) indicating the quality of life and by Score based ranking for all households. Each of the indicators have 0-4 marks. Thus for 13 indicators, the tentative marks obtained by the families are from 0-52 for all the Districts. The Supreme Court of India
Supreme Court of India
The Supreme Court of India is the highest judicial forum and final court of appeal as established by Part V, Chapter IV of the Constitution of India...
in Writ Petition No. 196/2001 filed by People's Union for Civil Liberties
People's Union for Civil Liberties
People's Union for Civil Liberties is a human rights body formed in India in 1976 by socialist leader Jayaprakash Narayan, as the People's Union for Civil Liberties and Democratic Rights .-The indian emergency:...
, the result of Below Poverty Line census 2002 need not be finalized. Later in October, 2005 the Government of India informed that based on the advice given by the Additional Solicitor General
Solicitor General of India
The Solicitor General for India is subordinate to the Attorney General of India, who is the Indian government's chief legal advisor, and its primary lawyer in the Supreme Court of India. The Solicitor General for India is the second law officer of the country, assists the Attorney General, and is...
, it has been decided to finalise the results of Below Poverty Line Census 2002 without deleting the Below Poverty Line families already existing in the Below Poverty Line list of Below Poverty Line Census 1997 and to follow the following procedure for finalisation of Below Poverty Line list.
- Preparation of Below Poverty Line list
- Approval in Gram Sabha
- Appeal to Block Development Officer and CollectorDistrict collectorThe District Collector is the district head of administration of the bureaucracy in a state of India. Though he/she is appointed and is under general supervision of the state government, he/she has to be a member of the elite IAS recruited by the Central Government...
. - Display of Final List
The Government of India then decided that the Below Poverty Line list for 2002 could be finalized as per original guidelines. The Director of Rural Development and Panchayat Raj stated that in the Below Poverty Line survey done in 1991 out of 84.33 lakh Rural families 34.46 lakh families were identified as Below Poverty Line families. In the Below Poverty Line survey done in the year 1999 out of 93.88 lakh rural families 27.37 lakh families were identified as Below Poverty Line families. He has stated that if the cut off mark is fixed as 16 the total number of families would be 25.48 lakhs
families against the total families of 86.65 lakhs which is lesser than the number of families indicated by Government of India viz. 26.77 lakh families. If the cut off mark is fixed as 17 marks, then the total the number of Below Poverty line families would be 30.51 lakhs. This is marginally above the number of families indicated by Government of India. i.e. 26.77 lakhs families. He has therefore recommended that the cut off marks to arrive at the number of Below Poverty Line families may be fixed at 17 so that no Below Poverty Line family gets left out of the list and requested orders of
Government in this regard. The Government after detailed examination has decided to accept the proposal of the Director of Rural Development and Panchayat Raj and accordingly order to fix the cut off mark as 17 for identification of a family as Below Poverty Line family.8. The Director of Rural Development and Panchayat Raj is requested to take necessary
further action for finalization of Below Poverty Line List for rural areas of this state as per the procedure laid down by Government of India.
Example
A Bench Mark Survey conducted in Maharashtra in 1997-1998 found 91.08 % Madia GondMadia Gond
Madia Gonds or Madia or Maria are one of the endogamous Gond tribes living in Chandrapur District and Gadchiroli District of Maharashtra State, and Bastar division of Chhattisgad State India. They have been granted the status of a Primitive Tribe by the Government of Maharashtra under its...
families BPL. Madia Gond are a people classified as primitive tribe, they live in Bhamragad Taluka, of Gadchiroli District
Gadchiroli District
Gadchiroli district is an administrative district in Maharashtra, India. The town of Gadchiroli is the administrative headquarters of the district....
, of Maharashtra
Maharashtra
Maharashtra is a state located in India. It is the second most populous after Uttar Pradesh and third largest state by area in India...
.