India Virtually Eliminated Extreme Poverty by Keeping it Below 1 pc Despite Pandemic: IMF

    IMF

    New Delhi| Jagran Business Office has “nearly excluded extreme poverty” by keeping it at the smallest position of 0.8 percent during the epidemic- hit 2020 through the Pradhan Mantri Garib Kalyan Yojana (PMGKAY), according to a new working paper published by the International Monetary Fund (IMF).

    In its paper named ‘Epidemic, Poverty, and Inequality Substantiation from India’, the IMF report said the poverty situation in India remained steady during the COVID-19 epidemic, thanks to”in-kind” subventions.

    “Extreme poverty was as low as 0.8 percent in the pre-pandemic time 2019, and food transfers were necessary for icing that it remained at that low position in the epidemic time 2020,” said.

    Under PMGKAY, which was launched in March 2020, the central government provides 5 kilograms of foodgrains per month for free. The fresh free grain is over and above the normal share handed under the National Food Security Act (NFSA) at a largely subsidized rate of Rs 2-3 per kilogram.

    PMGKAY has been extended till September 2022.

    “Further, as beforehand as 2016-17, extreme poverty had reached a low 2 percent position. According to the more applicable but 68 percent advanced Low Middle Income (LMI) poverty line of PPP ( copping power equality) USD3.2 a day, poverty in India registered 14.8 percent in the pre-pandemic time 2019-20”

    “This achievement is put in perspective by noting that in 2011-12, the sanctioned poverty position for the lower PPP USD1.9 line was 12.2 percent” it noted.

    The working paper- prepared by Surjit S Bhalla, Karan Bhasin, and Arvind Virmani- also said that for the first time in several decades, extreme poverty– those falling below the USD 1.9 per person per day in terms of copping power equality– in the world increased in the epidemic time 2020.

    As per the working paper, the epidemic support measures introduced by the government were critical in precluding any increase in the frequency of extreme poverty and food subventions have reduced poverty on a harmonious basis since the enactment of the FSA in 2013 and the eco-incidental increase in the effectiveness of targeting via Aadhaar.

    Farther, it said the effect of the subvention adaptations on poverty is striking.

    ” Real inequality, as measured by the Gini measure, has declined to near its smallest position reached in the last forty times-it was0.284 in 1993-94 and in 2020-21 it reached0.292.

    ” Conceivably the more surprising result from the objectification of food subventions into the computation of poverty is that extreme poverty has stayed below (or equal to) 1 percent for the last three times,” it said.

    Post-food subvention inequality at 0.294 is now veritably close to its smallest position of 0.284 observed in 1993-94, the working paper said, adding that in 2020, for the first time since the commencement of the PDS system, the government was supplying, in full, the introductory food portion demanded to the nethermost two-thirds of the population.

    The food support ( sections) increased during the epidemic-the food grain portion was doubled for each philanthropist from 5 kg of wheat (or rice) per month to 10 kilograms in 2020, it added.

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    Also, Read – https://indianlawinfo.in/neet-pg-2022

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