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POVERTY REDUCTION STRATEGY TN

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While the general base for many schemes is the state poverty share, this is subject to an<br />

adjustment factor proposed by the Lakdawala Committee till the late 1990s, which<br />

ensured that the reduction in the anti poverty programme allocation of specific states did<br />

not fall by more than 15 percent from the previous allocation formula. The adjusted<br />

formulae is now used for SGSY, SGRY and IAY (the latter with an additional factor of<br />

housing shortage), and for targeted public distribution system (TPDS), both urban and<br />

rural poverty are taken in to account. The adjusted shares are given in Table 6.8.<br />

Table 6.8: Core Funding Shares by States for Rural Anti-poverty Programmes<br />

State Task Force 93-94 Expert Group 93-94 Adjusted Shares<br />

Andhra Pradesh 6.635 3.257 5.64<br />

Assam 1.513 3.866 3.222<br />

Bihar 19.265 18.476 18.476<br />

Gujarat 2.11 2.547 2.123<br />

Haryana 0.721 1.498 1.249<br />

Himachal Pradesh 0.272 0.631 0.526<br />

Jammu &Kashmir 0.191 0.781 0.651<br />

Karnataka 5.011 3.934 4.259<br />

Kerala 1.094 2.293 1.911<br />

Madhya Pradesh 11.018 8.859 9.365<br />

Maharashtra 9.905 7.922 8.419<br />

Orissa 7.59 5.774 6.451<br />

Punjab 0.262 0.728 0.607<br />

Rajasthan 2.665 3.88 3234<br />

Tamil Nadu 5.546 4.987 4.987<br />

Uttar Pradesh 20.365 20.333 20.333<br />

West Bengal 5.479 8.601 7.169<br />

NE and UTs 0.235 1.147 0.967<br />

Source: Source: Saxena (2006); Rajan (2004) for social pensions.<br />

Note: NE: Northeastern States; UTs: Union Territories.<br />

A number of central and centrally sponsored schemes are being administered by<br />

state and district level authorities covering income and employment schemes as well as<br />

health and education services. Table 6.9 gives, as an illustration, the share of funds<br />

allocated by different tiers of government and spent by different spending<br />

authorities/entities for one district of Tamil Nadu (Villupuram). It shows that state funds<br />

contribute about 45 percent of total funds allocated, and taluk (block) and village level<br />

authorities spend relatively the larger share of expenditure.<br />

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