Need for fiscally sustainable poverty strategy

The Economic Survey has said anti-poverty strategy needs to be reformulated such that it is fiscally sustainable and finely targeted. Safety nets, it said, should focus on those who either cannot participate in the growth process for reason of extreme deprivation and vulnerability or face continuing exposure to risks.

The survey has underscored the need to create an enabling environment that enables the poor to participate in the growth process and benefit from it. Pro-poor public policies could include creation of employment opportunities and enhancing the level of health, education and skill of the poor.

It felt that the poverty alleviation programmes suffer from ill-defined and multiple objectives, limited targeting, under-funding, complex administration, high administrative costs and leakage, lack of proper accountability and adequate monitoring.

Only the Integrated Child Development Services and food for work programme were found to deliver. The survey has also highlighted the need for agro-based and rural resource-based industries to provide employment.