Sonia effect? Plan panel raises BPL bar
April 18, 2010: The Times of India
New Delhi: The uncertainty over the number of people to benefit from the proposed food security law has abated. With Sonia Gandhi in her new role as National Advisory Council chairperson keeping a vigil, the Planning Commission on Saturday dropped its reluctance to accepting Tendulkar committee’s report, putting the size of the below poverty line (BPL) population at 37.2%.
The Planning Commission had so far been keen on going with its own estimate that that pegged the BPL population numbers at 27.5%. The switch to the new benchmark boosts the number of potential beneficiaries of the food security by 1.1 crore — from 6.3 crore to 7.4 crore.
Planning Commission’s veering round to embrace an estimate it was not comfortable about comes against the backdrop of the return of Sonia Gandhi-helmed NAC. The revival of the body, billed by many to be the Planning Commission for the social sector, came against the backdrop of indications of Congress leadership’s annoyance with the lethargic implementation of the aam aadmi agenda of the Congress party.
It was Sonia’s letter to the government which led the group of ministers to revisit the draft legislation that it had cleared for the approval of the Union Cabinet. The Plan panel, which was deeply divided over the issue, rejected the proposal to have two separate poverty figures — one for food security and another for other social security schemes.
The revised numbers will mean the cost of the implementation of the proposed food security law going up, more so if Sonia Gandhi decides to heed the civil society activists who want the entitlement of foodgrain per family from the proposed 25 kgs per family to 35 kgs.
The current projected cost, computed on the basis of the proposal to provide 25 kgs to every BPL family at Rs 3, works out to Rs 28,860 crore. It will touch Rs 40,400 crore if the government raises the entitlement to 35 kgs per family.
Even in the case of the second scenario, the burden on the exchequer would be lower than the existing Rs 56,000 crore annual food subsidy, as under the PDS system the Centre also provides some subsidised grains to those above the poverty line. The last draft of the Act has suggested that the subsidy to APL beneficiaries would be done away with under the new law.
The decision puts the ball back in EGoM’s court which is redrafting the proposed bill at the moment. However, sources said there is all likelihood that new draft will be left relatively open-ended for the NAC to take the final call on the legislation.
