‘ Need to rework methodology’

Mr Ahluwalia said the current figures are based on the methodology suggested by a committee headed by economist Suresh Tendulkar, which factors in spend on health and education besides calorie intake

Conceding to the massive uproar over poverty estimates in the country, deputy chairman of planning commission Montek Singh Ahluwalia on Monday agreed to the argument that the method of tabulating the number of poor is “abstract” and said it is being reworked.

Seeking to distance himself from the data released by the plan panel last week according to which poverty figures declined to 21.9 per cent in 2011- 12 from 37.2 per cent in 2004- 05, Mr Ahluwalia said that the figures were based on the assessment of an expert committee.

The deputy chairman of Planning Commission said the current figures are based on the methodology suggested by a committee headed by renowned economist Suresh Tendulkar, which factors in spend on health and education besides calorie intake.

“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,” he told reporters here.

When asked about the reservations expressed with the ruling Congress, the deputy- chairman said, “Kapil ( Sibal) has said that the present system is abstract and even we should improve it. Even we agree to that.”

Mr Ahluwalia said the new methodology is being worked upon and that will be based on the Rangarajan Committee, which is expected to submit its report by middle 2014.

Mr Ahluwalia’s statement assumes significance as these poverty figures have led to a major uproar and slammed by all political parties, including UPA constituent NCP.

The plan panel’s deputy chief 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.”