POVERTY REDUCTION STRATEGY TN

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In relation to other millennium development goals (MDGs), some notable features are: a. The infant mortality rate was 15 in Tamil Nadu compared to 77 for All-India in rural areas and 22 for Tamil Nadu compared to 45 for all-India in urban areas. b. In the context of enrolment, the retention rate in classees 1-8 as percentage of class 1 intake is 63.2 for Tamil Nadu, compared to 36.3 for all-India. c. In terms of gender disparities also, Tamil Nadu’s performance is comparatively better. The gender ratio was 98.6 in 2001 and the female literacy rate was 63.4. d. The incidence of HIV/Aids is disturbing with total number of reported cases more than fifty thousand, which are differentially distributed across districts, with Chennai alone having nearly one-fifth of the total reported cases. e. With growing urbanization, a major concern would be providing safe drinking water in urban areas with high density of population so that water-borne and related diseases could be kept at a minimum. In Tamil Nadu, water scarcity and land degradation are two major constraints that affect agriculture in the state, which impact the poor more than others. The recently published State’s Eleventh Plan has laid emphasis on coping with the agricultural crisis in the context of its impact on employment and poverty and has taken note of the interdistrict disparities in the development indicators. An effective poverty reduction strategy would need to be dovetailed to the on-going macro and structural changes, which will provide economies of scale in reaching the MDGs. For the remaining, specially designed polices will provide comprehensive coverage of the population facilitating reaching the MDGs in the stipulated time, enabling Tamil Nadu to become one of the front-runners among Indian States in attaining the MDGs. b. Economic Growth and Poverty Reduction Growth is one of the strongest antidotes to poverty. The pattern of ownership of assets and redistribution policies can strengthen the poverty reducing impact of growth by correcting market failures specially the imperfections of the credit and insurance markets. The sectoral composition of growth is also critical. In Tamil Nadu, as in India as a whole, the structure of the economy is shifting away from agriculture. For people remaining in agriculture, the real growth rate is likely to remain relatively low compared to the other sectors. Agricultural prices also tend to be volatile. These trends will lead to further migration of people away from agriculture to non-agricultural activities, and away from rural to urban areas. Growth in employment in the primary sector in Tamil Nadu has been negative in recent years whereas that in secondary and tertiary sector has been 160
positive and relatively high. The basic challenge in the context of the changing structure of the economy and employment is to create the capacity to absorb the population migrating out of agriculture into industry and services with proper training and skill development. At the same time, productivity in agriculture should not be allowed to fall. This will require considerable additional investment in agriculture where government will have to play a key role as the returns will not be adequate to attract large inflows of private capital into agriculture. Higher growth, particularly in the non-agricultural sectors, has been shown to have a significant direct impact on reducing poverty in Tamil Nadu. c. Fiscal Reforms for Poverty Reduction Fiscal reforms and restructuring can strengthen growth and MDGs-based poverty reduction can be achieved by emphasizing human development. These changes are interdependent as expenditure on education and health accommodates absorption of labour in the non-agricultural sectors. This strengthens the growth momentum, generating additional revenues for the government for undertaking the required expenditures on health and education while continuing to meet the Fiscal Reforms and Budget Management (FRBM) targets. Further, fiscal space is created for undertaking additional investment in infrastructure. Tamil Nadu has been able to achieve its medium term fiscal responsibility targets. By 2008-09, it has already achieved a less than 3 percent fiscal deficit level relative to GSDP and a surplus on its revenue account. The ratio of outstanding liabilities relative to GSDP is about 22-23 percent and its interest payment liabilities also compare favourably with many other states. We have drawn up a fiscal restructuring plan for the period up to 2014-15 highlighting the scope for creating additional fiscal space for augmenting capital expenditure as well as expenditure on health and education relative to GSDP within the framework of the FRBMA. There is scope for increasing expenditure on water supply and sanitation, and on irrigation from the increased fiscal capacity. The following are the main features of the proposed fiscal restructuring. 1. The FRBM targets of maintaining surplus on revenue account and keeping fiscal deficit at 3 percent of GSDP has to be adhered to throughout the period up to 2014- 15. However, it is not necessary to over achieve the fiscal deficit target excessively by bringing it down much below 3 percent of GSDP. 2. Keeping fiscal deficit at 3 percent of GSDP with some revenue account surplus, capital expenditure can be increased reasonably above 3 percent of GSDP. It is 161
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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
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Districts Table 4.7: Health Facilit
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Regarding access costs in availing
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4.6 Incidence of Poverty: District
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district followed by Villupuram and
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household willing to do public work
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Districts Table 4.13: Implementatio
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Table 4.14: Share of BPL Population
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Table 4.16: Block -wise Gross Acces
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Table 4.18: Block-wise IMR in Thiru
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8. For provision of safe drinking w
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Chapter 5 WATER, LAND AND AGRICULTU
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5.2 Water: Key Issues in Tamil Nadu
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Table 5.3: Sources of Water Supply
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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 and 154: eneficiaries and of delivering prog
Page 155 and 156: In the nighbourhood of the poverty
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: Chapter 7 SUMMARY AND FORMULATION O
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
Page 205 and 206: • Addressing urban poverty allevi
Page 207 and 208: land. There is need to develop a sc
Page 209 and 210: REFERENCES Agarwal, S.P. (2005),
Page 211 and 212: Deaton, Angus and Alessandro Tarozz
Page 213 and 214: Himmelfarb, G. (1984), The Idea of
Page 215 and 216: Report of the Working Group on Urba
Page 217 and 218: APPENDIX TABLES Appendix Table 1.1:
Page 219 and 220: Appendix Table 1.1 (contd.): Millen
Page 221 and 222: Appendix Table 1.2 (a): Poverty Lin
Page 223 and 224: Appendix Table 1.3: Poverty Gap Est
Page 225 and 226: Appendix Table 1.5: Head Count Rati
Page 227 and 228: Appendix Table 1.6 (contd.): Progre
Page 229 and 230: Appendix Table 1.8: Women’s Malnu
Page 231 and 232: 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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