2.2poverty Part2

POVERTY
PART 2
www.edutap.co.in
1 www.edutap.co.in www.rbigradeb.wordpress.com
Contents
1 Poverty Alleviation programmes ............................................................................................................................... 3
1.1 National Food Security Act ................................................................................................................................ 3
1.2 MGNREGA ......................................................................................................................................................... 5
1.3 Deen Dayal Antyodaya Yojana (DAY) ................................................................................................................ 9
1.4 National Social Assistance Programme ........................................................................................................... 15
1.5 Prime Minister’s Rural Development Fellowship ............................................................................................ 18
1.6 Rural Self Employment Training Institutes ...................................................................................................... 19
1.7 Direct Benefit Transfer .................................................................................................................................... 21
2 Making Anti-poverty Programs More Effective ...................................................................................................... 25
3 The idea of UBI ........................................................................................................................................................ 26
4 CONCLUSIONS ......................................................................................................................................................... 28
1 Poverty Alleviation programmes
1.1 National Food Security Act

The National Food Security Act, 2013 was notified on 10th September, 2013 with the
objective to provide for food and nutritional security in human life cycle approach, by
ensuring access to adequate quantity of quality food at affordable prices to people to live
a life with dignity.
The Act provides for coverage of upto 75% of the rural population and upto 50% of the
urban population for receiving subsidized foodgrains under Targeted Public Distribution
System (TPDS), thus covering about two-thirds of the population. The eligible persons will
be entitled to receive 5 Kgs of foodgrains per person per month at subsidised prices of Rs.
3/2/1 per Kg for rice/wheat/coarse grains.
The existing Antyodaya Anna Yojana (AAY) households, which constitute the poorest of the
poor, will continue to receive 35 Kgs of foodgrains per household per month.
The Act also has a special focus on the nutritional support to women and children. Besides
meal to pregnant women and lactating mothers during pregnancy and six months after the
child birth, such women will also be entitled to receive maternity benefit of not less than Rs.
6,000.
Children upto 14 years of age will be entitled to nutritious meals as per the prescribed
nutritional standards. In case of non-supply of entitled foodgrains or meals, the
beneficiaries will receive food security allowance.
The Act also contains provisions for setting up of grievance redress mechanism at the
District and State levels. Separate provisions have also been made in the Act for ensuring
transparency and accountability.
Salient features:
 All Antyodaya Anna Yojana (AAY) or the poorest of the poor group, a priority group to
receive 7 kg of subsidised foodgrains per person per month ie. 35 kg of
foodgrain/family/month.
 General households will be entitled to atleast 3 kg/person/month.
 Upto 75 percent of the rural and up to 50 percent of the urban population will be
covered by the bill. Of these, at least 46 percent of the rural and 28 percent of the
urban population will be designated as priority households. The rest will be
designated as general households.
 Pregnant women and lactating mothers will be entitled to meals and maternity
benefits of not less than Rs 6000. It is however restricted to two children only.
 The eldest women of the household of age 18 years or above will be the head of the
household for the purpose of issuing ration cards.
 All beneficiaries will have to pay Rs 3/kg for rice, Rs 2/kg for wheat, Re 1/kg for coarse
grains. These prices can be revised after the first three years, up to the level of the
minimum support price (assured price paid by the Centre to farmers at the time it
buys grains from them).
 Food security allowance in case of non-supply of entitled food grains
The National Food Security Act, 2013 inter alia provides for payment of food security
allowance to entitled persons by State Government in case of non-supply of entitled
quantities of food grains, within such time and manner as may be prescribed by the Central
Government. Accordingly, the Government has notified the Food Security Allowance Rules,
2015 on 21 January, 2015 to prescribe the norms and manner of this allowance. The rules
have come into force on the date of their publication in the Official Gazette, i.e.,
21.01.2015.
As per these rules, the amount of food security allowance admissible to entitled persons
is determined by multiplying the difference between the 1.25 times the minimum support
price of the relevant food grain for that marketing season and the prices specified in
Schedule I to the Act, with the quantity of non-supply. The allowance is payable by the end
of the third week of the month following the month in which the non-supply occurred. The
notification has been circulated to all the States/Union Territories on 12.02.2015 for
necessary action.
1.2 MGNREGA
Mahatma Gandhi National Rural Employment Guarantee Act
The National Rural Employment Guarantee Act, (NREGA) was notified on September 7,
2005.
The Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), also known
as Mahatma Gandhi National Rural Employment Guarantee Scheme (MNREGS) is Indian
legislation enacted on August 25, 2005.
The MGNREGA provides a legal guarantee for one hundred days of employment in every
financial year to adult members of any rural household willing to do public work-related
unskilled manual work at the statutory minimum wage.
The Ministry of Rural Development (MRD), Govt of India is monitoring the entire
implementation of this scheme in association with state governments
Objective of the Act
The objective of the Act is to enhance livelihood security in rural areas by providing at least
100 days of guaranteed wage employment in a financial year to every household whose
adult members volunteer to do unskilled manual work.
MGNREGA Goals
1. Strong social safety net for the vulnerable groups by providing a fall-back
employment source, when other employment alternatives are scarce or inadequate.
2. Growth engine for sustainable development of an agricultural economy. Through the
process of providing employment on works that address causes of chronic poverty
such as drought, deforestation and soil erosion, the Act seeks to strengthen the
natural resource base of rural livelihood and create durable assets in rural areas.
Effectively implemented, MGNREGA has the potential to transform the geography of
poverty.
3. Empowerment of rural poor through the processes of a rights-based Law.
4. New ways of doing business, as a model of governance reform anchored on the
principles of transparency and grass root democracy. Thus, MGNREGA fosters
conditions for inclusive growth ranging from basic wage security and recharging rural
economy to a transformative empowerment process of democracy.
Coverage
The Act was notified in 200 districts in the first phase with effect from February 2nd 2006
and then extended to additional 130 districts in the financial year 2007-2008 (113 districts
were notified with effect from April 1st 2007, and 17 districts in UP were notified with effect
from May 15th 2007). The remaining districts have been notified under the NREGA with
effect from April 1, 2008. Thus NREGA covers the entire country with the exception of
districts that have a hundred percent urban population.
Salient Features of the Act
 Adult members of a rural household, willing to do unskilled manual work, may apply
for registration in writing or orally to the local Gram Panchayat
 The Gram Panchayat after due verification will issue a Job Card. The Job Card will
bear the photograph of all adult members of the household willing to work under
MGNREGA and is free of cost
 The Job Card should be issued within 15 days of application.
 A Job Card holder may submit a written application for employment to the Gram
Panchayat, stating the time and duration for which work is sought. The minimum
days of employment have to be at least fourteen.
 Employment will be given within 15 days of application for work, if it is not then daily
unemployment allowance as per the Act, has to be paid liability of payment of
unemployment allowance is of the States.
 Work should ordinarily be provided within 5 km radius of the village. In case work is
provided beyond 5 km, extra wages of 10% are payable to meet additional
transportation and living expenses
 Wages are to be paid according to the Minimum Wages Act 1948 for agricultural
labourers in the State, unless the Centre notifies a wage rate which will not be less
than Rs. 60/ per day. Equal wages will be provided to both men and women.
 Wages are to be paid according to piece rate or daily rate. Disbursement of wages has
to be done on weekly basis and not beyond a fortnight in any case
 At least one-third beneficiaries shall be women who have registered and requested
work under the scheme. (Participation of women in MGNREGA has increased to 55%
from less than 48% in the past)
 Work site facilities such as crèche, drinking water, shade have to be provided
 The shelf of projects for a village will be recommended by the gram sabha and
approved by the Zilla panchayat.
 At least 50% of works will be allotted to Gram Panchayats for execution
 Permissible works predominantly include water and soil conservation, afforestation
and land development works
 A 60:40 wage and material ratio has to be maintained. No contractors and machinery
is allowed
 The Central Government bears the 100 percent wage cost of unskilled manual labour
and 75 percent of the material cost including the wages of skilled and semi-skilled
workers
 Social Audit has to be done by the Gram Sabha
 Grievance redress mechanisms have to be put in place for ensuring a responsive
implementation process
 All accounts and records relating to the Scheme should be available for public scrutiny
1.3 Deen Dayal Antyodaya Yojana (DAY)
Deen Dayal Antyodaya Yojana (DAY) with an aim to uplift the urban poor folks by enhancing
sustainable livelihood opportunities through skill development. Keeping in view the
objective of Make in India, Skill Development is essential for socio economic betterment.
Deen Dayal Antyodaya Yojana was launched under the Ministry of Housing and Urban
Poverty Alleviation (HUPA). Government of India has provisioned Rs.500 crore for the
scheme.
The scheme is integration of the National Urban Livelihoods Mission (NULM) and National
Rural Livelihoods Mission (NRLM).
National Urban Livelihoods Mission (NULM) is renamed as Deen Dayal Antyodaya Yojana-
(DAY-NULM) and in Hindi as - Rashtriya Shahri Aajeevika Mission.
Under the scheme urban areas extends the coverage to all the 4041 statutory cities and
towns, there by covering almost the entire urban population. Currently, all the urban
poverty alleviating programmes covered only 790 towns and cities.
Mission of DAY-NULMDAY-NULM
To reduce poverty and vulnerability of the urban poor households by enabling them to
access gainful self employment and skilled wage employment opportunities, resulting in an
appreciable improvement in their livelihoods on a sustainable basis, through building strong
grassroots level.
The mission would also aim to providing the shelter equipped with essential services to the
urban homeless in a phased manner.
The scheme also address the livelihood concern of the urban street vendors by facilitating
with suitable space, institutional credit, and social security and skills to the urban street
vendor for accessing emerging market opportunities.
COMPONENTS OF DAY-NULM
The scheme has two component one for urban India and other for rural India.
The Urban component named as Deen Dayal Antyodaya Yojana will be implemented by
the Ministry of Housing and Urban Poverty Alleviation.
The rural component named as Deen Dayal Upadhyaya Grameen Kaushalya Yojana will be
implemented by the Ministry of Rural Development.
MAIN HIGHLIGHTS OF THE SCHEME
Employment through Skill Training and Placement - An expenditure of Rs.15,000 per

person is allowed on training of urban poor which is Rs.18,000 in North-East and J&K.
Moreover, training urban poor to meet the enormous demand from urban citizens by
imparting market-oriented skills through City Livelihood Centers is also one component.
Social Mobilization and Institution Development - It will be done through formation of Self-
Help Groups (SHG) for training members and hand holding, an initial support of 10, 000 is
given for each group. Assistance of Rs.50, 000 is provided to Registered Area Level
Federations.
Subsidy to urban poor - An interest subsidy of 5% - 7% for setting up individual micro-
enterprises with a loan of up to 2 lakh and for group enterprises with a loan limit of up to
Rs.10 lakhs.
Shelters for urban homeless - Cost of construction of shelters for urban homeless is fully
funded under the Scheme.
Other means - Development of vendor markets and also the promotion of skills for the
vendors through setting up infrastructure and special projects for the rag picker and
differently abled etc.
Effectiveness of the Scheme DAY-NULM
 Ownership and productive involvement of the urban poor and their institutions in all
processes
 Transparency in programme design and implementation, including institution building
and capacity strengthening
 Accountability of government functionaries and the community
 Partnerships with industry and other stakeholders
 Community self-reliance, self-dependence, self-help and mutual-help
GUIDING PRINCIPLES
The core belief of National Urban Livelihoods Mission (NULM) is that the poor are
entrepreneurial and have innate desire to come out of poverty. The challenge is to unleash
their capabilities to generate meaningful and sustainable livelihoods.
NULM believes that any livelihood promotion programme can be scaled up in a time bound
manner only if driven by the poor and their institutions. Such strong institutional platforms
support the poor in building up their own human, social, financial, and other assets. This in
turn, enables them access to rights, entitlements, opportunities and services from the public
and private sectors, while enhancing their solidarity, voice and bargaining power.
As per the Constitution (74th Amendment) Act, 1992, urban poverty alleviation is a
legitimate function of the Urban Local Bodies (ULB). Therefore, ULBs would need to
undertake a lead role for all issues and programmes concerning the urban poor in
cities/towns, including skills and livelihoods.
NULM would aim at universal coverage of the urban poor for skill development and credit
facilities. It will strive for skills training of the urban poor for market-based jobs and self-
employment, facilitating easy access to credit.
Street vendors constitute an important segment of the urban population. Street vending
provides a source of self-employment, and thus acts as a measure of urban poverty
alleviation without major Government intervention. They have a prominent place in the
urban supply chain and an integral part of the economic growth process within urban areas.
NULM would aim at facilitating access to suitable spaces, institutional credit, social security
and skills to the urban street vendors for accessing emerging market opportunities.
Accordingly, NULM would aim at providing shelter equipped with essential services to the
urban homeless in a phased manner.
NULM would place a very high emphasis on convergence with schemes/programmes of the
relevant line Ministries/Departments and programmes of state governments dealing with
skills, livelihoods, entrepreneurship development, health, education, social assistance, etc.
An alliance strategy will be sought with all concerned departments to promote skills training
of rural-urban migrants as a bridge the gap between the livelihoods of the rural and urban
poor.
NULM would aim at partnership with the private and civil society in providing shelters, skill
training, and also in facilitating technological, marketing and hand holding support for the
urban poor entrepreneurs who want to be self-employed and set up their own small
businesses or manufacturing units.
Monitoring of the Scheme Monitoring of the Scheme
The Ministry had developed an online web based Management Information System (MIS)
for the purpose of monitoring real time and regular progress of the scheme. MIS was
launched on 20 January 2015. MIS also enables stakeholders such as training providers,
certification agencies, banks, resource organizations to feed required information directly
which can be accessed by urban local bodies, States and Ministry of HUPA for monitoring
and other purposes and to track the progress.
Moreover, for effective monitoring of the implementation of the scheme DAY-NULM

Directorate regularly conduct review meetings and video conferences with the State/UTs.
Rural component of the scheme (Additional Features)
Universal Social Mobilisation - At least one woman member from each identified rural poor
household is to be brought under the Self Help Group (SHG) network in a time bound
manner. Special emphasis is particularly on vulnerable communities such as manual
scavengers, victims of human trafficking, Particularly Vulnerable Tribal Groups (PVTGs),
Persons with Disabilities (PwDs) and bonded labour. NRLM has devised special strategies
to reach out to these communities and help them graduate out of poverty.
Participatory Identification of Poor (PIP) - The inclusion of the target group under NRLM is
determined by a well-defined, transparent and equitable process of participatory
identification of poor, at the level of the community. All households identified as poor
through the PIP process is the NRLM Target Group and is eligible for all the benefits under
the programme. Target Group is identified through the Participatory Identification of Poor
(PIP) method. The NRLM Target Group (NTG) derived through the PIP is de-linked from the
BPL.
Community Funds as Resources in Perpetuity - NRLM provides Revolving Fund (RF) and
Community Investment Fund (CIF) as resources in perpetuity to the institutions of the poor,
to strengthen their institutional and financial management capacity and build their track
record to attract mainstream bank finance.
Financial Inclusion - NRLM works on both demand and supply sides of financial inclusion.
On the demand side, it promotes financial literacy among the poor and provides catalytic
capital to the SHGs and their federations. On the supply side, the Mission coordinates with
the financial sector and encourages use of Information, Communication & Technology (ICT)
based financial technologies, business correspondents and community facilitators like ‘Bank
Mitras’. It also works towards universal coverage of rural poor against risk of loss of life,
health and assets. Further, it works on remittances, especially in areas where migration is
endemic.
Livelihoods - NRLM focuses on stabilizing and promoting existing livelihood portfolio of the
poor through its three pillars –
1. ‘vulnerability reduction’ and ‘livelihoods enhancement’ through

deepening/enhancing and expanding existing livelihoods options and tapping new
opportunities in farm and non-farm sectors;
2. ‘employment’ - building skills for the job market outside; and
3. ‘enterprises’ - nurturing self-employed and entrepreneurs (for micro-enterprises).
Convergence and partnerships
Convergence: NRLM places a high emphasis on convergence with other programmes of the
MoRD and other Central Ministries. Convergence is also sought with programmes of state
governments for developing synergies directly or indirectly with institutions of the poor.
Partnerships with NGOs and other CSOs: NRLM has been proactively seeking partnerships
with Non-Government Organizations (NGOs) and other Civil Society Organizations (CSOs), at
two levels - strategic and implementation. The partnerships are guided by NRLM’s core
beliefs and values, and mutual agreement on processes and outcomes. Partnership
guidelines to partner with NGOs, CSOs have been finalized and approved this year.
Linkages with PRIs: In view of the eminent roles of Panchayat Raj Institutions (PRIs), it is
necessary to consciously structure and facilitates a mutually beneficial working relationship
between Panchayats and institutions of the poor, particularly at the level of Village
Panchayats. Formal platforms would be established for regular consultations between
such institutions and PRIs for exchange of mutual advice, support and sharing of
resources.
National Rural Livelihoods Project (NRLP)

NRLP has been designed as a sub-set of NRLM to create ‘proof of concept’, build capacities
of the Centre and States and create an enabling environment to facilitate all States and
Union Territories to transit to the NRLM.
NRLP would be implemented in 13 high poverty states accounting for about 90 percent of
the rural poor in the country.
Intensive livelihood investments would be made by the NRLP in 107 districts and 422
blocks of 13 states (Assam, Bihar, Chhattisgarh, Jharkhand, Gujarat, Maharashtra, Madhya
Pradesh, Orissa, Rajasthan, Uttar Pradesh, West Bengal, Karnataka and Tamil Nadu).
Distribution of project funds among the states would be based on inter-se poverty ratios.
1.4 National Social Assistance Programme

Introduction
NSAP stands for National Social Assistance Programme. NSAP was launched on 15th August,
1995.
The National Social Assistance Programme (NSAP) represents a significant step towards the
fulfillment of the Directive Principles in Article 41 and 42 of the Constitution recognizing the
concurrent responsibility of the Central and the State Governments in the matter. In
particular, Article 41 of the Constitution of India directs the State to provide public
assistance to its citizens in case of unemployment, old age, sickness and disablement and in
other cases of undeserved want within the limit of its economic capacity and development.
Objective of NSAP
National Social Assistance Programme is a social security and welfare programme to provide
support to aged persons, widows, disabled persons and bereaved families on death of
primary bread winner, belonging to below poverty line households.
Government is in process to make AADHAR mandatory for NSAP
Components of NSAP
The NSAP at its inception in 1995 had three components namely
1. National Old Age Pension Scheme (NOAPS),

2. National Family Benefit Scheme (NFBS) and
3. National Maternity Benefit Scheme (NMBS). The National Maternity Benefit Scheme
(NMBS) was subsequently transferred on 1st April, 2001 from the Ministry of Rural
development to the Ministry of Health and Family Welfare.
On 1st April, 2000 a new Scheme known as Annapurna Scheme was launched. This scheme
aimed at providing food security to meet the requirement of those senior citizens who,
though eligible, have remained uncovered under the NOAPS.
In February 2009, two new Schemes known as Indira Gandhi National Widow Pension
Scheme (IGNWPS) and Indira Gandhi National Disability Pension Scheme (IGNDPS) were
introduced.
Presently NSAP comprises of five schemes, namely –
1. Indira Gandhi National Old Age Pension Scheme (IGNOAPS),

2. Indira Gandhi National Widow Pension Scheme (IGNWPS),
3. Indira Gandhi National Disability Pension Scheme (IGNDPS),
4. National Family Benefit Scheme NFBS) and
5. Annapurna.
Eligibility and scale of assistance
For getting benefits under NSAP the applicant must belong to a Below Poverty Line (BPL)
family according to the criteria prescribed by the Govt. of India. The other eligibility criteria
and the scale of central assistance under the sub - schemes of NSAP are as follows. Besides
the central assistance, states / UT contribute an equal amount as their share:
Indira Gandhi National Old Age Pension Scheme (IGNOAPS) :
 The eligible age for IGNOAPS is 60 years.

 The pension is Rs.200 p.m. for persons between 60 years and 79 years. For persons
who are 80 years and above the pension is Rs.500/ - per month.
Indira Gandhi National Widow Pension Scheme (IGNWPS) :
 The eligible age is 40 years and the pension is Rs.300 per month.
 After attaining the age of 80 years, the beneficiary will get Rs.500/ - per month.
Indira Gandhi National Disability Pension Scheme (IGNDPS) :
 The eligible age for the pension er is 18 years and above and the disability level has to
be 80%.
 The amount is Rs.300 per month and after attaining the age of 80 years, the
beneficiary will get Rs 500/ - per month. Dwarfs will also be an eligible category for
this pension.
National Family Benefit Scheme (NFBS):
 Rs. 20000/ - will be given as a lumpsum assistance to the bereaved household in the
event of death of the bread - winner. It is clarified that any event of death (natural or
otherwise) would make the family eligible for assistance.
 A woman in the family, who is a home maker, is also considered as a ‘bread - winner’
for this purpose.
 The family benefit will be paid to such surviving member of the household of the
deceased poor, who after local inquiry, is found to be the head of the household.
 For the purpose of the scheme, the term “household’ would include spouse, minor
children, unmarried daughters and dependent parents.
 In case of death of an unmarried adult, the term household would include minor
brothers/ sisters and dependent parents. The death of such a bread - winner should
have occurred whilst he/ she is more than 18 years of age and less than 60 years of
age.
 The assistance would be given to every case of death of breadwinner in a family.
Annapurna Scheme:
 10 kgs of food grains (wheat or rice) is given per month per beneficiary.
 The scheme aims at providing food security to meet the requirements of those
eligible old aged persons who have remained uncovered under the IGNOAPS
1.5 Prime Minister’s Rural Development Fellowship
The Prime Minister's Rural Development Fellowship (PMRDF) is an initiative of the Ministry
of Rural Development (MoRD) Government of India (GoI), implemented in collaboration
with State Governments.
Objective
The PMRD Fellowship is anchored in the twin goals of providing short-term catalytic support
to the district administration in underdeveloped, isolated and remote areas of the country
to improve programme delivery and interface with the marginalized sections of the
population, as well as developing a cadre of committed and competent development
leaders and facilitators, who are available as a resource for rural development over the long
term.
Role of Prime Minister’s Rural Development Fellows
To begin with, the Fellows would need to spend time and effort in understanding the
historical, geo- physical, agro - ecological, social and economic contexts of the district.
The Fellows will have mainly the following functions:
1. Work with institutions of the poor to build their capacity and help them access their
rights and entitlements.
2. Facilitate capacity building in Self -Help Groups (SHGs), and in institutions of local
democracy, like panchayats.
3. Conduct socio -economic analysis of the local areas at Block level and contribute in
ascertaining the felt needs of the people.
4. Help the district administration in local area planning.
5. Assist in better implementation of poverty alleviation programmes, particularly
MGNREGA, NRLM, National Rural Drinking Water Programme, NBA, IWMP, NSAP,
IAP, ICDS, NRHM SSA/RMSA etc.
6. Undertake action -research to discover more appropriate ways of programme
delivery by the district administration
7. Design and implement innovative projects.
8. Provide feedback on rural development initiatives.
Tenure of Fellowship
The duration of Fellowship under the PMRDF shall be for a total period of two years and
shall include an orientation period not exceeding three months.
The Fellows shall be required to accept the terms and conditions governing the Fellowship
contract through an agreement with NRLPS and subscribe to such agreement with regard to
their Fellowship.
1.6 Rural Self Employment Training Institutes

Lakhs of youth are entering the job market every year in this country but are unable to find
suitable employment. Non-availability of adequate employment opportunities in the
organized & unorganized sectors is one of the serious challenges the country is facing.
In such a scenario, the need for promoting self employment for the unemployed rural
youth, particularly those below the poverty line, and periodic skill up gradation to keep
them abreast of latest technologies, need not be overstated. Once trained appropriately,
the youth will launch profitable micro-enterprises and enhance their own standards of living
and thereby contribute to the overall national economy. They can also feed the services
sector, both within the country and abroad.
With the aim of mitigating the unemployment problem among the youth, a new initiative
was tried jointly by Sri Dharmasthala Manjunatheshwara Educational Trust, Syndicate Bank
and Canara Bank in 1982 which was the setting up of the “RURAL DEVELOPMENT AND SELF
EMPLOYMENT TRAINING INSTITUTE” with its acronym RUDSETI near Dharmasthala in
Karnataka.
Several centres of the RUDSETI are already operating successfully now under an initiative of
Ministry of Rural Development.
Objectives of RSETIs
 Rural BPL youth will be identified and trained for self-employment.

 The trainings offered will be demand driven.
 Area in which training will be provided to the trainee will be decided after assessment
the candidate’s aptitude.
 Hand holding support will be provided for assured credit linkage with banks.
 Escort services will be provided for at least for two years soon to ensure sustainability
of micro enterprise trainees.
 The trainees will be provided intensive short-term residential self-employment
training programmes with free food and accommodation.
Sponsorship
The State Government in consultation with the banks, assign districts, preferably, to the
respective Lead Banks in the States to set up RSETIs.
There shall be single bank’s sponsorship of the RSETI in a district to avoid any overlapping /
disruption in management.
Land for setting up the RSETIs is allotted to the concerned Banks, free of cost, by the State
Governments. The construction of the building for the RSETIs is undertaken by the
concerned Bank, Trust/Society. In case the banks so desire they may request the State
Government for assistance for construction.
Till the time a suitable land is identified and building constructed the RSETIs will start
operations from hired premises.
Programme Structure
Each RSETI offers about 30 to 40 Skill Development Programmes in a financial year in

various avenues. All the programmes are of short duration ranging preferably from 1 to 6
weeks. A general classification of the types of programmes is as follows:
1. Agricultural Programmes - Agriculture and allied activities like Dairy, Poultry,

Apiculture, Horticulture, Sericulture, Mushroom cultivation, floriculture, fisheries, etc.
2. Product Programmes - Dress designing for men and women, Rexine utility Articles,
Agarbathi manufacturing, Foot ball making, Bags, Bakery Products, Leaf Cup making,
recycled paper manufacturing, etc.
3. Process Programmes - Two Wheeler repairs, Radio / TV repairs, Motor rewinding,
electrical transformer repairs, irrigation pump-set repairs, tractor and power tiller
repairs, cell phone repairs, Beautician Course, Photography & Videography, Screen
Printing, Photo Lamination, Domestic Electrical appliances repair, Computer
Hardware and DTP.
4. General Programmes - Skill development programmes for women etc.
5. Other Programmes - related to sectors like leather, construction, hospitality and any
other sector depending on local requirements.
1.7 Direct Benefit Transfer
With the aim of reforming Government delivery system by re-engineering the existing
process in welfare schemes for simpler and faster flow of information/funds and to ensure
accurate targeting of the beneficiaries, de-duplication and reduction of fraud Direct Benefit
Transfer (DBT) was started on 1st January, 2013.
With the rapid rollout of Aadhaar in the country, it was felt possible to move to a system of
transferring cash benefits directly to the poor.
Present Status of DBT
DBT has shown promising results in pilot schemes being run in different parts of the
country. These include PAHAL (modified DBTL for LPG subsidy), Public Distribution System
(PDS) in Puducherry, Chandigarh and Mahatma Gandhi National Rural Employment
Guarantee Act (MGNREGA) payments in Jharkhand, Bihar, etc. The programme has already
been universalised since February 2015.
As on Septmeber, 2016, DBT Mission is monitoring data from 17 Ministries/Departments on

75 government schemes operational in the country.
Categories of schemes covered under DBT
The scope of DBT include all welfare/subsidy schemes operated by all the Ministries/
Departments of Government of India directly or through implementing agencies, which
involve cash / kind benefits' transfers to individuals. Accordingly, the scope of DBT covers
the following categories of schemes.
Cash Transfer
Cash Transfer to Individual Beneficiary - This category includes schemes or components of

schemes wherein cash benefits are transferred by Government to individual beneficiaries.
Example PAHAL, MGNREGA, NSAP etc. This transfer of cash benefits from
Ministry/Department to beneficiaries happens through different routes, as given below:
Directly to beneficiaries
 Through State Treasury Account to beneficiaries

 Through any Implementing Agency as appointed
 Centre/State Governments to beneficiaries
In-kind
In-kind Transfer from Government to Individual Beneficiary - This category includes schemes
or components of schemes wherein kind benefits are given by the Government to
individuals through an intermediate agency. Typically, Government or its agent incurs
expenditure internally to procure goods for public distribution and make services available
for targeted beneficiaries. Individual beneficiaries receive these goods or services for free or
at subsidised rates.
To cite an example, in Public Distribution System (PDS), Food Corporation of India (FCI) is
the Government agent responsible for procurement, movement, storage and distribution of
food grains to Fair Price Shops. FCI issues the food grains at subsidised rates, as fixed by the
Government. The rates so fixed do not cover the full economic cost incurred by the
Corporation. The difference represents the consumer subsidy for the PDS, and is paid to the
Corporation by the Government of India. Similarly, Government incurs internal expenditures
for provision of subsidies in kind on other products like kerosene, fertilisers, books,
medicines, vaccines, etc.
Key Enablers for DBT
The success of an ambitious and a highly desirable initiative like DBT depends on a set of a
few critical factors. For a heterogeneous and a large country like India, it becomes
imperative that these critical success factors are ensured to achieve smooth rollout of a
programme like DBT. The key success factors or enablers for an efficacious Implementation
of DBT would include:
JAM Trinity
DBT by leveraging the JAM (Jan Dhan, Aadhaar and Mobiles) trinity and the technological
prowess offers to drastically improve the benefit delivery system in the country. The JAM
Trinity will enable this novel system to transfer benefits in a leakage-proof, well targeted,
cashless and timely manner.
Business Correspondents (BC) Infrastructure
Reserve Bank of India introduced Business Correspondents / Banking Correspondents (BC)

as an alternative to brick and mortar banks for infrastructure. BC is presently authorised to
offer services such as cash transactions where the bank does not have a branch. As per
census 2011, there are 23,333 villages with population above 5,000 and 1,19,761 villages
above 2,000 populations. However, there are only 11,224 villages in the country with
population above 5,000 which have a bank branch. Business Correspondents/ Bank Mitras
will have a vital role in operationalising the programme and ensuring the last mile
connectivity. The strong presence of BCs will ensure that payments are disbursed to the
beneficiaries on time, at their doorstep and of full value.
Payments Bank
A payments bank is like any other bank, but operating on a smaller scale, without involving
any credit risk. It can carry out most banking operations and enable transfers and
remittances through a mobile phone but cannot advance loans or issue credit cards. The
main objective of payments bank is to widen the spread of payment and financial services
to small business, low-income households, migrant labour workforce, etc. in secured
technology-driven environment across the country. On 19 August 2015, the Reserve Bank of
India gave in-principle licences to eleven entities to launch payments banks. With payments
banks, RBI seeks to increase the penetration level of financial services in the remote areas
of the country.
Mobile money
Mobile money is a fast moving way of payment in the country and could be helpful in
providing solution to last mile issue for better accessibility of DBT. There is a need to
develop a comprehensive eco-system for carrying out cashless transactions over mobile
platform using Aadhaar as identifiers. This will revolutionise the drive for financial inclusion.
2 Making Anti-poverty Programs More Effective
Now, when we have read about most of the poverty alleviation programmes, we are in a
position to discuss the process of making anti-poverty programs such as the Public
Distribution System (PDS), Midday Meal Scheme, MGNREGA and Housing for All more
effective representing, the second leg of the strategy to eliminate abject poverty.
Some specific suggestions on how each of these important programs can be made more
effective: -
For example, keeping in view the fact that poor households lag the most in the consumption
of protein-rich items such as milk and eggs, it may make sense to offer them option
between cash and in-kind transfers under the PDS. This may be then complemented by an
information drive on the importance of a proteinrich diet. This would encourage households
to opt for cash and use it to shift in favour of a protein-rich diet.
Likewise, MGNREGA can be made more effective by allowing it to impart skills. This would
also pave the way for many workers to exit the program. Relaxing the proportion of
expenditure on materials and allowing the use of contractors in the materials component
would greatly improve the quality of assets produced. During peak season, farmers may be
permitted to hire MGNREGA workers by paying 75% of the wages with the balance paid
by MGNREGA wage funds. This would lead to more productive use of labour while also
spreading MGNREGA wages over more workdays.
Jan Dhan Yojana, Aadhaar, Mobile (JAM) trinity could play a vital role in widening the
reach of Government to the vulnerable sections. Jan Dhan bank accounts under Prime
Minister’s Jan Dhan Yojana (PMJDY), biometric identity cards under Aadhar and accessibility
to the accounts through mobile phones promise to revolutionize the anti-poverty
programmes by replacing the current cumbersome and leaky distribution of benefits under
various schemes by the Direct Benefit Transfers (DBT).
With the Aadhar account permitting aggregation of the information, this would give the
government an excellent database to assess the total volume of benefits accruing to each
household. In turn, this information can eventually pave the way for replacing myriad
schemes with consolidated cash transfers except in cases in which there are other
compelling reasons to continue with in-kind transfers. Therefore, we must rapidly expand
the use of JAM trinity.
Each Gram Panchayat may be asked to identify five poorest families in the village and
endeavour to lift them out of poverty. Panchayat may ensure that these families get all
government benefits. A modest cash transfer for a pre specified time period may top these
benefits. The eventual effort should be to ensure that the families become capable of
earning and sustaining above poverty level income within five to seven years.
3 The idea of UBI
India is looking at a radical idea for reducing poverty: free money for everyone—no strings
attached!
The Ministry of Finance’s annual survey of the economy, explores how the country might
replace its various welfare programs with a universal basic income, or a uniform stipend
paid to every adult and child, poor or rich. Guaranteeing all citizens enough income to cover
their basic needs would promote social justice, the survey says, and empower the poor to
make their own economic choices. It would also be easier to administer than India’s
current antipoverty programs, which are plagued by waste, corruption and abuse.
Universal basic income is an old idea that is enjoying a revival as governments look to
revamp their safety nets. Finland launched a pilot project this year, and localities in
Canada and the Netherlands have also announced experiments. Voters in Switzerland
considered, and rejected, a minimum-income proposal last year.
In India, the idea is especially appealing because of the weakness of existing welfare
programs, which largely take the form of subsidies paid to sellers of grain, fuel, fertilizer and
other essentials. By making everyone eligible, a universal basic income obviates the messy
task of identifying who is and who isn’t in need of assistance. And by paying money directly
into bank accounts, it would allow India to do away with the vast administrative machinery
currently needed to supply the poor with cheap wheat, rice and other goods.
By one estimate, around one-third of the grain set aside for India’s food-welfare program
never reached the intended beneficiaries in 2012, the most recent year for which
comprehensive data are available. Payments under a giant rural-work program are regularly
delayed, leaving families in the lurch. As a map in the economic survey shows, many
districts with the largest concentrations of poor residents receive less than a proportional
share of spending under the six largest welfare programs.
The idea has attracted criticism, though, which the economic survey largely dismisses. It
cites a 2015 study of cash-based welfare programs in six developing countries that finds that
financial aid didn’t discourage recipients from working. On concerns that households—
“especially male members”—may fritter away their basic income on liquor and tobacco, the
survey points to a study in Madhya Pradesh that found that farmers used free money to
invest more in cultivating their crops.
The survey also argues that paying a basic income directly into bank accounts would
encourage more people to use formal financial services, which would then help banks
invest in expanding access to banks and ATMs.
In the short term, though, India’s underdeveloped financial infrastructure could make it
hard for many people to access their entitlements. According to the World Bank, there are
only around 20 ATMs for every 100,000 adults in India, compared with 70 in South Africa,
114 in Brazil and 132 in the U.K.
When it comes to estimating the fiscal cost of a basic income, the economic survey first
looks for a level of stipend that would bring everyone but India’s very poorest above the
poverty line of 893 rupees ($13) per month. That amount works out to 7,620 rupees
($112) a person each year.
Even if this stipend is paid out to only 75% of the population, making it not quite universal,
the total cost to the government comes to 4.9% of India’s gross domestic product. The
program’s cost would become “prohibitively high,” according to the survey, if the payment
amount were further increased to try to lift all Indians above the poverty line.
Simply getting rid of the present welfare programs wouldn’t free up much that money, the
survey shows. Ending the major subsidies for the poor—on food, fertilizer and fuel—would
save 2.07% of GDP. Eliminating additional subsidies that accrue to the middle class—on
things like train and air travel, cooking gas and loans—would provide an additional 1.05% of
GDP.
That’s why the survey considers a few ways a basic income in India could be made
universal on paper but not in practice. The government could exclude people who possess
cars, air-conditioners or bank balances above a certain size. It could encourage people to
opt out of the program, or produce a public list of beneficiaries to name and shame rich
people who receive assistance.
The survey also considers giving a basic income only to women, at least to start. “Women
face worse prospects in almost every aspect of their daily lives—employment
opportunities, education, health or financial inclusion,” the survey says.
It adds that a universal income is a way of acknowledging that work not done for wages—by
housewives, for instance—does in fact contribute to society.
A basic income, the survey argues, is no mere antipoverty measure, but rather “gives
concrete expression to the idea that we have a right to a minimum income, merely by
virtue of being citizens. It is the acknowledgement of the economy as a common project.”
4 CONCLUSIONS
With 1.2 billion people and the world’s fourth-largest economy, India’s recent growth and
development has been one of the most significant achievements of our times. Over the six
and half decades since independence, the country has brought about a landmark
agricultural revolution that has transformed the nation from chronic dependence on grain
imports into a global agricultural powerhouse that is now a net exporter of food. Life
expectancy has more than doubled, literacy rates have quadrupled, health conditions
have improved, and a sizeable middle class has emerged. India is now home to globally
recognized companies in pharmaceuticals and steel and information and space
technologies, and a growing voice on the international stage that is more in keeping with its
enormous size and potential.
Historic changes are unfolding, unleashing a host of new opportunities to forge a 21st-
century nation. India will soon have the largest and youngest workforce the world has ever
seen. At the same time, the country is in the midst of a massive wave of urbanization as
some 10 million people move to towns and cities each year in search of jobs and
opportunity. It is the largest rural-urban migration of this century.
The historic changes unfolding have placed the country at a unique juncture. How India
develops its significant human potential and lays down new models for the growth of its
burgeoning towns and cities will largely determine the shape of the future for the country
and its people in the years to come.
Massive investments will be needed to create the jobs, housing, and infrastructure to meet
soaring aspirations and make towns and cities more livable and green.
Generating growth that lifts all boats will be key, for more than 400 million of India’s
people–or one-third of the world’s poor–still live in poverty. And, many of those who have
recently escaped poverty (53 million people between 2005-10 alone) are still highly
vulnerable to falling back into it. In fact, due to population growth, the absolute number of
poor people in some of India’s poorest states actually increased during the last decade.
Inequity in all dimensions, including region, caste and gender, will need to be addressed.
Poverty rates in India’s poorest states are three to four times higher than those in the more
advanced states.
While India’s average annual per capita income was $1,410 in 2011–placing it among the
poorest of the world’s middle-income countries– it was just $436 in Uttar Pradesh (which
has more people than Brazil) and only $294 in Bihar, one of India’s poorest states.
Disadvantaged groups will need to be brought into the mainstream to reap the benefits of
economic growth, and women—who “hold up half the sky”—empowered to take their
rightful place in the socioeconomic fabric of the country.
Fostering greater levels of education and skills will be critical to promote prosperity in a
rapidly globalizing world. However, while primary education has largely been universalized,
learning outcomes remain low. Less than 10 percent of the working-age population has
completed a secondary education, and too many secondary graduates do not have the
knowledge and skills to compete in today’s changing job market.
Improving health care will be equally important. Although India’s health indicators have
improved, maternal and child mortality rates remain high and, in some states, are
comparable to those in the world’s poorest countries. Of particular concern is the nutrition
of India’s children whose well-being will determine the extent of India’s much-awaited
demographic dividend; at present, an overwhelming 40 percent (217 million) of the world’s
malnourished children are in India.
The country’s infrastructure needs are massive. One in three rural people lack access to an
all-weather road, and only one in five national highways is four-lane. Ports and airports have
inadequate capacity, and trains move very slowly. An estimated 300 million people are not
connected to the national electrical grid, and those who are face frequent disruptions. And,
the manufacturing sector–vital for job creation–remains small and underdeveloped.
Nonetheless, a number of states are pioneering bold new initiatives to tackle many of
India’s long-standing challenges and are making great strides towards inclusive growth.
Their successes are leading the way forward for the rest of the country, indicating what can
be achieved if the poorer states were to learn from their more prosperous counterparts.
India now has that rare window of opportunity to improve the quality of life for its 1.2
billion citizens and lay the foundations for a truly prosperous future–a future that will
impact the country and its people for generations to come.

2.2poverty Part2

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

2.2poverty Part2

Uploaded by

Copyright:

Available Formats

POVERTY

1.1 National Food Security Act

Salient Features of the Act

MAIN HIGHLIGHTS OF THE SCHEME

Employment through Skill Training and Placement - An expenditure of Rs.15,000 per

Effectiveness of the Scheme DAY-NULM

Monitoring of the Scheme Monitoring of the Scheme

Moreover, for effective monitoring of the implementation of the scheme DAY-NULM

1. ‘vulnerability reduction’ and ‘livelihoods enhancement’ through

National Rural Livelihoods Project (NRLP)

1.4 National Social Assistance Programme

The NSAP at its inception in 1995 had three components namely

1. National Old Age Pension Scheme (NOAPS),

Presently NSAP comprises of five schemes, namely –

1. Indira Gandhi National Old Age Pension Scheme (IGNOAPS),

Indira Gandhi National Old Age Pension Scheme (IGNOAPS) :

 The eligible age for IGNOAPS is 60 years.

The Fellows will have mainly the following functions:

1.6 Rural Self Employment Training Institutes

 Rural BPL youth will be identified and trained for self-employment.

Each RSETI offers about 30 to 40 Skill Development Programmes in a financial year in

1. Agricultural Programmes - Agriculture and allied activities like Dairy, Poultry,

Present Status of DBT

As on Septmeber, 2016, DBT Mission is monitoring data from 17 Ministries/Departments on

Categories of schemes covered under DBT

Cash Transfer to Individual Beneficiary - This category includes schemes or components of

 Through State Treasury Account to beneficiaries

Key Enablers for DBT

Business Correspondents (BC) Infrastructure

Reserve Bank of India introduced Business Correspondents / Banking Correspondents (BC)

3 The idea of UBI

You might also like