Inputs for Lok sabha election manifesto Part I The poverty line and subsidy
The Planning Commission has been playing with the poverty line and subsidy figures, thanks to Harvard-educated Vice-chairman at the helm of affairs.
As per the data available from the Ministry of Statistics and Programme implementation (http://www.business-standard.com/content/general_pdf/112513_02.pdf), the total subsidies in FY 13 worked out to be whopping Rs 5,75,253 crores or 40 % of the total expenditure of FY13. In Q1 FY14, total subsidies account for an eye-watering 7.16 per cent of GDP or 46 per cent of government expenditure. (http://www.business-standard.com/article/opinion/rajiv-shastri-the-subsidy-devil-is-in-the-detail-113112400681_1.html). But as per budget, it is shown as Rs 2,57,654 crores. Consider the huge administrative costs. So much about the bungling of this UPA government.
According to the recent Mckinsey Global Institute’s survey (http://timesofindia.indiatimes.com/india/McKinsey-pegs-poverty-line-at-Rs-1336-per-month/articleshow/30691907.cms), 68 crore people are under poverty as against the ad hoc figure of 32.3 crores spun out by the Planning Commission. If the 90 % the subsidies of Rs 575253 crores reach the poor masses, the real income of the poor people will rise by Rs 600 per month and one third of them will come above poverty line. In next 5 years, we can wipe out poverty from our land. This is possible more so if a part of this subsidies is ploughed into income generation and job creation developmental activities. No poor wants to be at the receiving end.
AAP should focus on this issue as one of the election agenda. We can discuss it in finer detail to the select AAP leadership. more