Anti-Poverty Helping Programs in India

Mitigation of poverty remains a challenge in India. As per the Tendulkar Committee report, there is a steady decline in poverty in the last two decades, but perhaps the numbers below the poverty line remain constant due to population growth. According to the published report, the number Below Poverty Line (BPL) was 37.2% in 2004-5, 29.8% in 2009-10, and reduced to 21.9% of the population in 2011-12. Employment intensive economic growth alleviates poverty in the long run. Anti-poverty & employment generation in India could be the way out.

(Image Will be Updated Soon)

Anti-poverty & employment generation in India (Multiple Programs) helped 271 million people to cross the dreaded line of poverty in 2005-2006 and 2015-2016, according to the Global Multidimensional Poverty Index -2018 published by the UN (United Nations). In the last decade, BPL has reduced from 55% to 28% of the Indian population. Still, a significant part of the population is languishing below the Poverty Line. Anti-poverty measures need to be accompanied by basic amenities to improve the overall standard of life. Anti-poverty programs designed for self-employment and wage-earning were restructured in 1999-2000 to make it more effective.

The FY2000-01 resource allocated to anti-poverty programs was Rs.9760 crore, compared to Rs.9351 crore for FY 1999-2000. Now the question is, what are the anti-poverty measures that could be operated? Major employment generation programs in India operated in rural and urban areas are: 

Integrated Rural Development Program (IRDP)

Integrated Rural Development Program (IRDP) was initiated by the Government of India in 1978-79 and implemented on 2nd October 1980 to provide job opportunities for the deprived and enhance their skills to enhance their standard of living. Bank credit and subsidiaries were provided to generate employment opportunities. In addition, requisite assets and inputs were provided to target groups; the assets could be in the primary, secondary, and tertiary sectors in the form of financial assistance.

The IRDP and associate programs were merged into a single scheme known as Swarnajyanti Gram Swarozgar Yojana (SGSY) on 1st April 1999. The scheme was intended to promote micro-enterprises and the rural community into self-help groups. This scheme is centrally sponsored with a cost-sharing ratio of 75:25 between Center and States, with an objective of ability building, collective production, infrastructure/ technology support, credit and marketing chain. The Integrated Rural Development Program (IRDP) was considered one of the successful employment schemes in India. 

Jawahar Rozgar Yojana/ Jawahar Gram Sambridhi Yojana

Jawahar Gram Sambridhi Yojana (JGSY) was introduced on 1st April 1999 as the descendant of Jawahar Rozgar Yojana (JRY) with an expenditure allocation ratio of 75:25 between Union and States. JGSY is a refined, streamlined, and comprehensive version of the former JRY scheme with the purpose of creating demand-propelled village infrastructure coupled with durable assets. In addition, the scheme was introduced to generate sustained and supplementary employment for jobless rural poor. The target area of the scheme is rural areas with special emphasis on SC/ST communities, people below BPL, and the physically disabled. 

The allocated funds for these anti-poverty programs in India are dispersed through District Rural Development Agencies (DRDAs) and Zila Parishads with matching state subsidiaries. Village Panchyat has sole discretion to plan and implement annual plans in accordance with Gram Sabha.22.5% of JGSY allocation is earmarked for SC/ST, 3% for creating barrier-free infrastructure for the disabled. 

The State Government affirms the wage structure under JGSY; Village Panchyat executes projects up to Rs. Fifty thousand with an endorsement of the Gram Sabha. For schemes above Rs.50 000, the Village Panchyat needs approval from the appropriate technical/administrative body and the consent of the Gram Sabha.

Rural Housing-Indira AwaasYojana/ Pradhan Mantri Awaas Yojana 

Indira AwaasYojana was an integral part of Jawahar Rozgar Yojana (JRY), which became one of the many independent wage employment programs in India from 1997 to 98 onwards. This scheme aims to build a house for SC/ST, freed bonded laborers, and non-SC/ST people living below BPL. The beneficiary lists are chosen from BPL and endorsed by Gram Sabha. At least 60% of the allocated fund to the IAY scheme must be employed to construct/upgradation of residential units for SC/ST BPL families, and 40% is allocated to non-SC/ST BPL people.

From 2016 to 2017, IAY (Indira Awaas Yojana) was renamed Pradhan Mantri Awaas Yojana to provide housing for all by 2022. SECC data is the basis for selecting a beneficiary. The allocated fund will be released into the beneficiaries’ bank account in three installments. The minimum unit size of the dwelling unit is 25sq.mt.including hygienic cooking space, excluding the toilet. Unit assistance for the house is Rs.1.30 lakh and must be completed within eighteen months of receiving the first installment. The beneficiary will construct the proposed house without appointing contractors. 

Mahatma Gandhi National Rural Employment Guarantee Act (MGNREG) 2005

Mahatma Gandhi National Rural Employment Guarantee Act (MGNREG) 2005 is legislation passed on 25th August 2005. MGNREG offers a legal guarantee for hundred days of employment in one financial year to all adult rural people willing to participate in public works at statutory minimum wage. It is one of the extensive employment generation schemes in India, supervised under the Ministry of Rural Development (MRD) and executed in association with State governments. Under these self-employment programs in India, one-third of the jobs are reserved for women.  

The Act was passé as a social measure to enhance the livelihood of rural people with a guaranteed of hundred days of unskilled employment. It is a precautionary measure to safeguard vulnerable groups, providing an alternative employment source when other job opportunities are scarce or absent. This wage employment program supplements the agro-economy. This program is structured to provide relief from severe poverty caused by drought, soil erosion, or flood. This Act tries to balance the resource base of rural employment, creating durable assets in the area. Effectively put into operation, this scheme can transform the landscape of poverty. 

Salient Features

Adult rural members willing to partake in unskilled public work will be provided with a job card by the Gram Panchayat after due verification. The Job Card is issued within fourteen days of application. If Gram Panchayat cannot offer employment within fifteen days of application, the applicant will be paid an unemployment allowance as per the Act. The liability of unemployment allowance lies with the State government. Work is usually provided within a five-kilometer radius of the village; if the place of employment is beyond the specified distance extra 10% wage is paid for transportation and living costs. 

Wages are paid according to the Minimum Wages Act 1948 for agricultural laborers or as per the current notifications issued by the Center, which will not be lower than Rs.60 per day. There is no wage difference between males and females. Weekly wage payment must be made and not be lingered beyond fifteen days in any case.

Anti-poverty measures play an important role in reducing poverty. In the last two decades, many employment generation schemes have been implemented in India to enhance the living standard and eradicate poverty. They have been taken many anti-poverty measures. Eminent economists suggest there is a strong correlation between economic growth and poverty reduction. The successful implementation of MGNREG has considerably increased household consumption and acquisition of nonfinancial assets. Furthermore, Prime Minister Jan Dhan Yojana, biometric Aadhar card has streamlined, and sealed leakage in Public Distribution systems and Center Sponsored Schemes. The disbursement through Direct Benefit Transfers (DBT) has replaced cumbersome corrupt benefit distribution. The structural reforms and more allocation to employment generation schemes have reduced poverty significantly.