POVERTY REDUCTION STRATEGY TN

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durable seen as an extreme deprivation at par with ‘having less than one square meal per day for major part of the year’. Further, the ranking on the aggregate score of rural households is not needed for programmes addressing deprivations that are universal in scope like illiteracy, lack of sanitation, and safe drinking water. The ranking is not relevant for key employment programmes (JGSY and EAS) that are focused on locations of need and not at individual households. The ranking does not matter for programmes like Antyodaya and Annapoorna. In a recent study, Jalan and Murgai (2006), by mapping of BPL criteria to NSS data, find that the BPL identification methodology is a weak mechanism for identifying the poor. Table 6.3 reports the extent of under-coverage in the BPL classification at the state-level estimated by them. One key findings of their study is that the BPL score misclassifies nearly half (49 percent) of the poor as non-poor, and conversely, 49 percent of those identified as BPL poor are actually non-poor. Jalan and Murgai argue that the targeting errors of the BPL design imply large welfare losses, both to households, and in terms of efficiency of public spending, which is based on the BPL mechanism. The problems of targeting across the distribution are also shown in Table 6.4 which reports poverty rates (expenditure based and BPL score based) and under-coverage and leakage rates by per capita expenditure classes. State Table 6.3: Poverty Rate and Targeting Errors in the 2002 BPL Classification, by State Rural Poverty Rate 99/00 (percent) Share of Poor Misclassified as Non-poor by BPL Criteria (percent) State Rural Poverty Rate 99/00 (percent) Share of Poor Misclassified as Non-poor by BPL Criteria (percent) Andhra Pradesh 10.5 76.9 Madhya Pradesh 37.2 43.8 Assam 40.3 41.6 Maharashtra 23.2 54.4 Bihar 44.0 40.6 Orissa 47.8 32.1 Gujarat 12.4 64.9 Punjab 6.0 72.4 Haryana 7.4 73.8 Rajasthan 13.5 63.8 Himachal Pradesh 7.5 74.5 Tamil Nadu 20.0 64.5 Karnataka 16.8 64.2 Uttar Pradesh 31.1 51.9 Kerala 9.4 72.6 West Bengal 31.7 46.3 All India 26.8 49.1 Source: Jalan and Murgai (2006), based on NSS 55 th round. Note: Rural poverty rates use official Planning Commission state-specific rural poverty lines. 132
In the nighbourhood of the poverty line (i.e., the third decile), the BPL indicator misclassifies 62 percent of the poor as BPL non-poor and 33 percent of the non-poor are classified as poor. In the poorest decile, a large share of the population (around 37 percent) is incorrectly classified as being non-poor. Targeting errors in the richer expenditure classes are, by comparison, marginal. Table 6.4: Poverty Rate and Targeting Errors in the 2002 BPL Classification, by Expenditure Class Poverty Rate Targeting Errors Expenditure Class Expenditure BPL Score Undercoverage Leakage Based Based Poorest 10 % 100.0 63.2 36.8 --- 2 nd decile 100.0 47.6 52.4 --- 3 rd decile 69.7 36.2 62.2 27.3 4 th decile 0.0 31.9 --- 100.0 3 rd quintile 0.0 23.0 --- 100.0 4 th quintile 0.0 14.3 --- 100.0 Richest 20 % 0.0 8.0 --- 100.0 Total 27.0 27.0 49.1 49.1 Source: Jalan and Murgai (2006), based on NSS 55 th round. Note: Leakage is the percentage of the BPL poor that is actually (expenditure-based) non-poor. These findings indicate that the BPL Census should be used for targeting programmes with adequate caution. In particular, targeting strategies should be developed separately for different objectives like income, health, education, and gender. 6.3 Targeting Strategies for Tamil Nadu In Tamil Nadu, distribution of funds/benefits among districts, for various central, centrally sponsored, and state schemes follow a variety of criteria. Often these are ad-hoc. A fourstage targeting strategy of (a) districts ranked in order of deficiency separately for different goals (income-deficiency, health, education, and gender objectives), (b) blocks/urban agglomerations, and (c) wherever the discretion is with the state government or district officials would improve outcomes. a. First Stage: Districts The first stage of targeting involves ranking of district in order of deficiency. This is most straightforward as data on levels of achievement are available. b. Second Stage: Rural: Blocks; Urban: Cities/Towns Within the district, allocation of funds should be done block-wise for rural areas and in proportion to urban poor in total urban poor in the urban segments. 133
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MONOGRAPH 6/2010 MDGs-BASED POVERTY
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MONOGRAPH 6/2010 March 2010 Price:
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CONTENTS Acknowledgements Contents
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List of Tables Table 1.1 Millennium
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Table 5.10 Status of Urban Water Su
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Appendix 1.12 Maternal Mortality an
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MDGs-Based Poverty Reduction: Main
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. In terms of share of below povert
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of expenditure on public goods like
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households or individuals. For each
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Chapter 1 ISSUES AND INITIAL CONDIT
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The first three goals relate to era
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. Poverty in Tamil Nadu: Inter-stat
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and the urban poverty ratio was sli
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the total poor accounted for a prog
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physical development of people. Mor
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Table 1.11: Millennium Development
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indicates that Tamil Nadu will achi
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However, there is a scope for meeti
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status of malnutrition. The accepte
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The under-five mortality rate-U5MR
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(iv) HIV/AIDS, Malaria and Other Di
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3. While Tami Nadu has done compara
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Chapter 2 REDUCING POVERTY: THE MAC
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est of the economy indicates the ex
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share of the tertiary sector in Tam
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Chart 2.1: Sectoral Growth in Tamil
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policies are in place to absorb lar
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In the context of interface between
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Table 2.7: Decomposition of the Hea
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Dutt are not so relevant for predic
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The SDE estimates vary across the s
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Chart 2.3 highlights that agricultu
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2.6 Summary In summary the followin
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Chapter 3 FISCAL REFORMS FOR POVERT
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Bardhan (1996) emphasizes that ofte
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atio of government employees to pop
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Table 3.2: Tamil Nadu in Inter-stat
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Chart 3.4: Own Tax Revenues Relativ
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collected by state-owned enterprise
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Chart 3.5: Capital Outlay as percen
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The Fiscal Policy Strategy Statemen
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f. Pension and Salary Expenditures
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10 it is kept at 40 percent to acco
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Government of Tamil Nadu has to sub
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Chapter 4 COPING WITH SPATIAL IMBAL
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In order to focus on the deficient
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Chart 4.2 indicates the arrangement
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Chart 4.5: Human Development Index:
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Table 4.4: Index of Gender Deficien
Page 103 and 104: Districts Table 4.7: Health Facilit
Page 105 and 106: Regarding access costs in availing
Page 107 and 108: 4.6 Incidence of Poverty: District
Page 109 and 110: district followed by Villupuram and
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Page 113 and 114: Districts Table 4.13: Implementatio
Page 115 and 116: Table 4.14: Share of BPL Population
Page 117 and 118: Table 4.16: Block -wise Gross Acces
Page 119 and 120: Table 4.18: Block-wise IMR in Thiru
Page 121 and 122: 8. For provision of safe drinking w
Page 123 and 124: Chapter 5 WATER, LAND AND AGRICULTU
Page 125 and 126: 5.2 Water: Key Issues in Tamil Nadu
Page 127 and 128: Table 5.3: Sources of Water Supply
Page 129 and 130: funding under the Water Resources C
Page 131 and 132: In 2006-7, 65.83 percent of habitat
Page 133 and 134: the major cause for poor maintenanc
Page 135 and 136: about 30 litre per capita per day (
Page 137 and 138: 2006-07). However, total area under
Page 139 and 140: nearly 3.5 times as high as the pri
Page 141 and 142: 5.4 Agriculture: Key Issues Agricul
Page 143 and 144: Table 5.19: Productivity (Yield) of
Page 145 and 146: Only rice and sugarcane received ir
Page 147 and 148: iv. There are severe water quality
Page 149 and 150: Chapter 6 LAST MILE REACH STRATEGIE
Page 151 and 152: targeting as a device to improve ef
Page 153: eneficiaries and of delivering prog
Page 157 and 158: inefficiencies. Some of the major c
Page 159 and 160: Tamil Nadu is close to achieving un
Page 161 and 162: programmes. It is the only Self Emp
Page 163 and 164: districts in Tamil Nadu. Namadhu Gr
Page 165 and 166: 6.5 Reaching Households and Individ
Page 167 and 168: proposition more insurable, a group
Page 169 and 170: line to post-office saving banks or
Page 171 and 172: each the urban poor who live in slu
Page 173 and 174: Eleventh Plan (2007) observes: “O
Page 175 and 176: i. provide financial assistance for
Page 177 and 178: unemployed or underemployed poor by
Page 179 and 180: Services Prepare detailed water sup
Page 181 and 182: Chapter 7 SUMMARY AND FORMULATION O
Page 183 and 184: positive and relatively high. The b
Page 185 and 186: 3. In terms of composition of BPL p
Page 187 and 188: holdings are smaller than 4 hectare
Page 189 and 190: There are considerable inter-distri
Page 191 and 192: Table 7.1: Adjustment during 2007-0
Page 193 and 194: R i =(I a +I max -I i )/(I a +I max
Page 195 and 196: line to post-office saving banks or
Page 197 and 198: d. Targeting As far as rural areas
Page 199 and 200: 7.6 Urban Poverty Reduction Strateg
Page 201 and 202: Fund, GoTN has created Tamil Nadu I
Page 203 and 204: Some initiative by Government of Ta
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• Addressing urban poverty allevi
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land. There is need to develop a sc
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REFERENCES Agarwal, S.P. (2005),
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Deaton, Angus and Alessandro Tarozz
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Himmelfarb, G. (1984), The Idea of
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Report of the Working Group on Urba
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APPENDIX TABLES Appendix Table 1.1:
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Appendix Table 1.1 (contd.): Millen
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Appendix Table 1.2 (a): Poverty Lin
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Appendix Table 1.3: Poverty Gap Est
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Appendix Table 1.5: Head Count Rati
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Appendix Table 1.6 (contd.): Progre
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Appendix Table 1.8: Women’s Malnu
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Appendix Table 1.10: Child Mortalit
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Appendix Table 1.11 (contd.): State
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Appendix Table1.12 (contd.): Matern
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Appendix Table 2.3: Decomposition o
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and Publicity Relief from Natural C
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Appendix Table 4.3: Demography Rela
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Appendix Table 4.5: Health Faciliti
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Sl. No Appendix Table 4.7: Efficien
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Appendix Table 4.9: Employment unde
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Appendix Table 5.1: Major and Mediu
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Appendix Table 7.1: Indices for Dis
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ANNEXURES 231
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Monotonicity Sensitivity Axiom Mono
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component of the poverty line is th
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Fuchs (1969), while advocating the
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H = m/n (2) The head count ratio ig
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Annexure 1.3 UNIFORM RECALL PERIOD
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‣ Periyar became Erode; ‣ Tirun
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Women Receiving 3 Or More ANC Visit
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In Sivagangai, as per 2001 census,
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Table 4.3: Block wise Gender Wise G
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Block Table 4.6: Trained Teachers a
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Annexure 5.1 ENVIRONMENTAL CONSEQUE
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Annexure 6.1 NOTES ON SELECTED CENT
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10. Kasturba Gandhi Balika Vidyalay
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POVERTY REDUCTION STRATEGY TN

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