CHAPTER – 2

POVERTY ALLEVIATION – AN OVER VIEW

 RURAL POVERTY IN INDIA
The first prime minister of India in 1947, Nehru called “the ending of poverty and
ignorance and disease and inequality of opportunity”. Mahatma Gandhi had always insisted that
India would become truely independent only when the poorest of its people would be free from
human suffering. The basic causes of necessity and poverty include unequal access to and
ownership of means of production and subsistence patriarchy and the gender -based division of
labour, social status and ethnicity exploitation through debt related and labour bondage etc.
The lack of purchasing power due to inadequate employment with remunerative wages,
food insecurity, low and variable productivity of land and other assets, lack of access to public
services, especially health and education, non – farm employment, scarcity, etc. arefurther casual
factors. Performance in poverty reduction varies across theIndian state . iIt has been most
impressive..
MEANING

The term poverty can be considered to have a cluster of different overlapping meanings
depending on the subject area or discourse . In the Poverty and Social Exclusion (PSE) Survey
both poverty and social exclusion have been measured using a range of different definitions and
techniques so that the results can be usefully compared with other work and a better scientific
consensus developed .

Poverty is a situation in an economy where there is inadequate level of income and

consumption and resulting insufficient basic necessities of life such as health care housing
adequate nutrition adequate clothing etc. The World Bank Developed report identified that
over 65% of the world population lives in absolute poverty .

ABSOLUTE POVERTY
Absolute poverty is defined as a situation were the resources of individuals or families are
inadequate to provide his basic needs of life such as food , shelter , clothing etc.

RELATIVE POVERTY
Relative poverty is defined as a position of individual household compared with the
average income in the country such as poverty line set at one half of the mean income or at the
40% of the distribution and which often varies with the level of average income .

In India is directly related to over all agricultural productivity, which in turn is

dependent upon water for irrigation facilities while this affects all farmers within these areas,
farmers with particularly small holdings are most affected,in the surveyed villages, lack of these
facilities is idenified as the “root cause” of poverty. Richer communities are identified as those
that have access to water, making dry season gardens possible.
DYANAMICS OF POVERTY

The people / households with a high income and a high standard of living are not
poor. However, to other groups of peoples /households that are not poor can also be identified
in a cross . Sectional (one point in time) survey as on the PSE Survey.

 People / households with a low income but ahigh standard of living.

This group is not currently poor but if their income remains low they will become
poor – they are vulnerable to sinking into poverty . This situation often arises when income
falls rapidly (due to job loss) but people manage to main their lifestyle, for at least a few
months, by drawing on their savings and using the assets accumulated when income was
higher.

 People / households with a high income but a low standard of living.

This group is not poor and if their income remains high their standard of
living will rise – they will rise out of poverty. This group is in the opposite situation to the
previous group. This situation can arise when the income of someone which is poor suddenly
increases ( due to getting a job). However, it takes time before they are able to buy the things that
they need to increase their standard of living. Income can both rise and fall faster than standard
of living.

A cross sectional “poverty survey can provide some limited but useful
information on the dynamics of poverty since it is possible not only to identify the ‘poor’ and the
‘not poor’ but also those likely to be sinking into poverty ( that is , people/ households with a low
income but high standard of living “). Living in poverty is, by definition, an extremely
unpleasant situation so it is not surprising that people go to considerable lengths to avoid it and
try hard to escape from poverty once they have sunk into it . Therefore, a cross-sectional poverty
is larger than the group escaping from poverty.

ASSUMPTIONS RELATING TO POVERTY

 The main assumptions relating to poverty and its alleviation programmes are:

 First, many factors coverage to make poverty a complex, multi dimensional

phenomenon.
 Second, as expected poverty is routinely defined as the lack of what is
necessary for material well being - especially food but also housing, land,
and other assets. Poverty is the lack of multiple resources leading to physical
deprivation.

 Third poor people’s definitions reveal important psychological aspects of

poverty. Poor people are acutely aware of their lack of voice, power and
independence , which subject them to exploitation. Their poverty also leaves
them vulnerable to rudeness, humiliation and inhumane treatment by both
private and public agents of the state from whom they seek help. Poor people
also speak about the pain brought about bt their unavoidable violation of
social norms and their inability to maintain cultural identify through
participating in traditions, festivals, and rituals. Their inability to fully
participate in community life leads to a break down of social relations.

 Fourth,the absence of basic infrastructure – particularly roads, transport,

water and health facilities emerged as crtical. While literacy is viewed as
important schooling receives mixed reviews , occasionally highly valued but
often notable irrelevant in the lives of poor people.

 Finally, poor people focus on assets rather than income and link their lack of
physical, human, social and environmental assets to their vulnerability and
exposure to risk.

DECENTRALISATION OF POVERTY REDUCTION

 A democratic decentaliation is also predicted upon the notion that greater
participation in local political affairs will get better ones personality and yet Government
services particularly one expected at the upliftment of poor and politically minor groups of the
security.

SIGNIFICANCE OF PANCHAYATHI RAJ

The concept of domestic decentralisation took its shape with a view to better
administration and development prospective, and for quick rural development and corporation of
rural development and co-operation of rural people. State government does not posses adequate
wisdom of local affairs and problems. From this view democratic decentralisation can constitute
a significant contribution to the theory and practices of nation building activities in the
developing area. Panchayath are also predictable to pay an important role in planning and
implementing various development programmes.
After independence of India has continually implemented development
interventions with the objective of improving the social and economic condition of the people.
Now it is strongly felt that an effective Panchayath Raj System can bring about rapid and
integrated development through people participation. To bring about these intended goals the
Government of India has implemented many anti poverty programmes in the state, such as:

 National Rural Employment Guarantee Scheme

Natinal Rural Employment Guarantee Act 2005 (or, NREGA NO 42, later
renamed as the “Mahatma Gandhi National Rural Emphloyment Act”}, is an Indian
labour law and social security measure that aims to guarantee the ‘right to work'.

 Swarnajayanthi Gram Swarozgar Yojana

Swarnajayanti Gram Swarojgar Yojana ( SGSY) IS an initiative launched by the
GOVERNMENT OF INDIA to provide sustainable income to poorest of the poor people
living in rural and urban area of the country. The scheme was launched on April, 1999.

 Indira Awaas Yojana

 IAY deals with the housing issue and promises to provide shelter to shelterless.
It fulfills the housing need of poor rural people who are living below the poverty line ( BPL).

 Pradhan mantri Gramodaya Yojana

The Pradhan Mantri Gramodaya Yojana (gramin awaas)will, generally, be
based on the pattern of the IAY and will be implemented in the rural areas throughout the
country

 Pradhan Mantri Gram Sadak Yojana etc…

PMGSY is a nationalwide plan in India to provide good all – whether road

connectivity to unconnected villages.

Sufficient provisins have been made for their implementation through the
panchayathi institutions. But this programmes could not bear the desired result due to
inconsistency between scheme aim, poor quality of asset creation lack of resources and
manipulation of the records.

TYPES OF POVERTY
 Situational Poverty
It is generally caused by a sudden crisis or loss and is often temporary.
Events
Of causing situational poverty include environmental disasters, divorce , or severe health
problems.

 Generational Poverty

It occurs in families where at least two generations have been born in to

poverty.
Families living in this type of poverty are not equipped with the tools to move out of their
 Situations.

 Absolute Poverty

It involves the scarcity of necessities such as shelter, running water and food.
Families
Who lives in absolute poverty tend to focus on day to day survival.

 Uraban poverty

It occurs in metropolitan areas with population of at least 50,000 people. The

urban areas with a complex aggregate of chronic and acute stressors ( including
crowding violence and noise ) and are dependent on often inadequate large city
services.

 Rural Poverty
It occurs in non metropolitan areas with population below 50,000. The rural
poverty rate is growing and has exceed the urban rate every year.

EFFECT OF POVERTY

Poverty involves a complex array of risk factors that adversely affect the
population in a multitude of way . The four primary risk factors affecting families
living
In poverty are :

 Emotional and social challenges

 Acute and chronic stressors

 Cognitive lags

 Healthy and safety issues

CAUSES OF POVERTY
The causes of poverty include changing trends in a country’s economy, lack of
education , high
Divorce rate which causes feminisation of poverty, having a culture of poverty. Over population,
epidemic diseases such as AID s, Malaria and environmental problems such as lack of
rainfalls . Rural poverty is a multi – dimensional social problem. Its causes varied they are :

 Climatic factors
 Demographic factors
 Peronal causes
 Economic causes
 Social causes

,’
Climatic factors

Climatic conditions constitute an important causes of poverty. The hot climate reduces the
capacity of people especially the ruralises to work for which production severally suffers
frequent flood , famine
Earth quake and cyclone cause, heavy damage to agriculture.More over absence of timely
rain,affect
Agricultural production

Demographic factors
The following demographic factors accountable for poverty in rural areas.
1. Rapid growth of population

Rapid growth of population aggravates the poverty of the people.

Population growth not only creates difficulties in the removal of poverty
but also lowers the per capita income which increase poverty.population
growth at a faster rate increases labour supply which tends to lower the wage rate.
 2. Size of family

Size of family has significant being on rural poverty. The larger the size of
Family, the lower is the per capita income and the lower in the standard of living.

Personal causes

 Lack of motivation

Lack of motivation is an important cause of rural poverty. Some ruralises

do not have a motive hard or even to earn something. This accounts for the poverty
of the ruralises.

 Idleness

Most of the rural people are lazy, dull and reluctant to work. Hence they rot in
poverty.

Economic causes
 Low agricultural productivity
Poverty and real income are very much interrelated . Increase in real
income leads to reduction of the magnitude of poverty. So far as agricultural sector is
concerned , the farmers
Even today are following the traditional method of cultivation. Hence there is low
agricutural
Productivity resulting in rutral poverty.

 Declaim of village industries

At present consequent upon industrialisation new factories and industries are

being set
Up in rural areas. Village industries fail to compete with them in terms of quality and
price.
 As a result they are closed down. The workers are thrown out of employment and lead a
life of
Poverty.

Lack of employment opportunities

Unemployment is the reflection of poverty. Because lack of employment
opportunities,
People remain either unemployed . Most of these unempolyed and under employed
workers
are the small and marginal farmers and the landless agricultural labours.

Social causes

 Education

Education is an agent of social change and egalitarianism. Poverty is also

said to be
Closely related to the level of schooling and these two have a circular relationship . The
earning
Power of is endowed in the individual by investment in education and training. But this
investment
In people takes away money and lack of human investment contributes to the low earning
capacity
Of individual . In this way people are poor because they have little investment in themselves
and poor
People do not have the fund for human capital investment.

 Caste system
 Caste system has always be responsible for rural poverty . The
subordination
Of low caste people by the high caste people by the high caste people caused the
poverty
Of the farmer. Due to rigid caste system, the low caste people could not participate in the
gameof economic progress.

 Joint family system

The joint family system provides social security to its members. Some people
take
Advantage of it . They live upon the income of others ,they become idles. Their normal
rountine of life consists in eating, sleeping and be getting children. In this way poverty gets
aggreated through joint family system.

 Social custo

The ruralises spend a large percentage of annual earning on social

ceremonies like marriage , death, feastivals etc …. As a result they remain in debt and poverty.

Poverty Alleviation
 The govt of India was taken up various measures to surmount the problem of povert.
Poverty alleviation programmes comprising of wage employment programmes, rural housing
schemes and public distribution system have been initiated from time to time . Some were
moderately successful in addressing the issue of poverty where as others suffered from major
flaws in their implementation.

 NATIONAL RURAL EMPLOYMENT PROGRAMME (NREP ) 1980 -89

 RURAL LANDLESS EMPLOYMENT GUARANTEE PROGRAMME (RLEGP) 1983

 JAWAHAR ROZGAR YOJANA (JRY) 1989 -99

 JAWAHAR GRAM SAMADHI YOJANA (JGSY) 1999-2002

 EMPLOYMENT ASSURANCE SCHEME (EAS) 1993

 SAMPOORNA GRAMEEN ROZGAR YOJANA (SGRY) 2001

 NATIONAL FOOD FOR WORK PROGRAMME (NFFWP) 2004

 MGNREGA (2000)

Poverty eradication is one of the major objectives of planned

development . The magnitude of the problem is still quite straggling 30% of the
Indian population was below poverty line . poverty can be effectively be
eradicated
Only when the poor start contributing to the growth by their active involvement
in the growth process . To improve such growth number of programmes should
be implemented. Implementation of the programmes should be increasingly based
an approach and method which involves the poor themselves in the process of
poverty themselves in the process of poverty eradication and economic growth.

This is possible through a process of social mobilisation ,

encouraging participatory approach and institutions and empowerment of the poor
etc…. poverty alleviation being a broad specimen activity , therefore it cover the
following sector -agriculture , health ,education , water resources , finance, transport ,
housing ,employment generation , rural and urban development etc.
The village , panchayath , were one of the main governing bodies of this programme .
The village panchayath were a part of the people and under stood their needs .
The poverty alleviation programmes can be categorised based on whether it is targeted
for rural areas or urban areas . Most of the programmes are designed to target rural
poverty as the prevalence of the poverty is high in rural areas also targeting in rural
areas due to various geographic and infrastructure limitations. The programmes can be
mainly grouped into :

 Wage employment programmes

 Self employment programmes
 Food security programmes
 Social security programmes
 Urban poverty alleviation programmes

The main aim of this type of programmes was developed of rural areas .
This was only given to BPL families and fund was to be spending for individual
beneficiary schemes forSC,ST, and 3 % for the establishment of barriers free
infrastructure for disabled people.

Povrty alleviation programmes

1 wage 2 .social security 3 . Rural housing 4. Old age pension scheme

Employment programme programme
programme

Figure no :2.1 Type of poverty alleviation programme

0
Wage Employment programmes
Meaning
A wage is a monitory compensation ( or remuneration , personal
expenses, labour ) paid by an employer to an employee in exchange for work
done.
Payment may be calculated as a fixed amount for each task completed ( a task wage
or piece rate) or at any hourly or daily rate , or based on an easily measured quantity
of work done.

MGNREGA

Mahatama Gandhi National

Rural Employment Guarantee Act was
implemented by the ministry of rural
development. The act comes in to
force on february 2, 2006.It is flagship
programme of the Government that
directly touches the lives of the poor
and promote inclusive growth. The act
aims at enhancing livelihoods security
of houdeholds in rural areas of the
country by providing at least one
hundred days of guaranteed wage
employment in a financial year to
every households whose adult
members volunter to do unskilled
mannual work. In phase one it was
introduced 200 of the most backward
districts of the country. It was
implemented in additional 130 districts
in phase to 2007-2008. As per the
initial target NREGA was to expanded
country wide in five years. The primary
objective of the act is augmenting
wage employment.
Objectives of NREGA
 Expanding earning sources
 Strengthening grass roots producers of democracy
 Infusing visibility and resposibility in government
 Strengthening high decentralisation as well depending procedures of democracy
 Strengthening pure natural resources under control via works
that deals with cause of serious hardship like deforestation and
ground break down .
 Motivate maintainable growth

Its auxiliary objective is strengthening natural resources management

through works that address as causes of chronic poverty like drought ,
deforestation and soil erosion and so encourage sustainable development.
The process outcomes include strengthening grass roots process of democracy
And influencing transparency and accountability in governance . The act also
Mandates 33% participation for woman.

The central government has been encouraging the state government

to make wage payment through bank office accounts of wage seekers . Thus
2.9 cr NREGA bank and post office accounts have been opened to disburse
wage.
The ministry is also encouraging the National Rural Eployment Guarantee Act
( NREGA ) workers to obtain insurance under Jan Shri Bima Yojana . The vision
Of the ministry is enabling NREGA become a transfermative vechicle of
empowering
local communities to enhance their livelihood security. The ministry has taken
steps to ensure the scheme is implemented effectively like encouraging
participatory management , improving selivery system and public accountability .
The ministry has set up a comprehensive monitoring system . This year 260
National level monitors and area officers have undertaken field visit
to each of the
330 phases . For effective monitoring of the projects 100 % verification of the
works at block level , 10 % at the district level and 2% at the state level
inspections be ensured .
Other Provisions Of Act

Funding

The central government of India

has recognized a finance known as
the Nationwide career Assurance
Fund , from whch allows are lanuched
straight to zoones . Turning resources
are to be set up REGS at the Region
Prevent and Local Gramapanchayath
level , with individual records being
started out for such resources at each
level.

Timely allocation of Work

 Schedule 1 para 10 of the actstate that it shall be open to the PO and GP to direct
any person who has applied for employmentto do work of any type permissible by the act . The
information on wor requested and work allotted is required to be mentioned in the
employment register. The state govt shall delineate
clear coordination mechanism so that the data on work requested and allotted by the
programme officer and gram panchayath are properly maintained.

Unemployment Allowance
If an applicant not provided employment with in fifteen days of receipt of his l her
application shall be entittled to a daily unemployment allowance. In the case of advance
applications , employment should be provided from the date that the employment has been
sought or within 15 days of the date of application which ever is later.

Social Seurity Programmes

The ministry of government of India have came
up with the various schemes from time to time . These schemes
could be either central , state
specific or joint collaboration between the centre and state.
They are ;
TABLE NO : 2 .1
SOCIAL SECURITY SCHEMES

programme Date of Sector Provision

launched

Midday meal 1995 Health and Lunch to school

scheme education children on all
working days

Deendayal 2003 Social justice Create an

Disabled enabling
Rehabitation environment to
Scheme ensure equal
opportunities,
social justice
etc of person
with disability

Deendayal
Upadhyaya 2015 Rural Provide
Grameen Development employment
Kaushalya through skill
training
programmes

Indira Awaas
Yojana Rural housing Provide
1985 financial
assistance to
rural poor for
constructing
their houses

National social 1995 Pension Public

assistance assistance to
schemes citizen in case
of
unemployment
, old age,
sickness etc .

National 2004 Pension Contributions

pension based pension
Scheme scheme.

Old Age Pension Scheme

The Indira Gandhi National Old Age Pension Scheme (IGNOAPS ) is a non
contributory
old age pension scheme . That covers Indians who are 60 years and above and
live below
the poverty line . The pension scheme is part of the National Social Assistance
Programme
( NSAP ) that launched by the ministry of rural developing in August 1995 . All
INGOAPS
Beneficiaries aged 60 – 79 recevies a monthly pension of Rs . 200 . Those 80
years and
above receives a monthly pension amount of Rs . 500 . Any individual year or
holder should
be eligible for old age pension ; for women , eligibility to be years or older . APL /
BPL criteria
should not be for exclusion .

Natinal Social Assistance Programme is a centrally sponsored scheme of

the Gvernment of India that provides financial asssistance to the elderly , widows
and
Pension with disabilities in the form of social pension .

History
 Article 41 of the Indian constitution directs the state to
provide public assistance to its citizens in the case unempolyment , old age ,
sickness and disablement
and in other case of underserved want within the limit of its economic , capacity
and dvelopment.

 1995 : The NSAP IS launched with the aim of providing social assistance
to
destitute.

 2000 : Annapurna Yojana is introduced to provide eligible beneficiaries .

 2001 :NMBS transferred to the deparment of familiy welfare .
 2006 : monthly pension amount for NOAPS raised from
75 to 200 .
 2007 : the NSAP IS extended to cover all individuals living below the
poverty line . The NSAP is renamed Indira Gandhi National
Widow Pension scheme .

 2009 : The NSAP IS expanded to include the Indira Gandhi National Widow
Pension Scheme (IGNWPS) .

 2011 : Age limit for IGNOAPS is lowered from 65 to 60 .

 2012 : Monthly Pension under IGNOAPS increased from 200 to 300 age limit
changed to 40 -79 and 18 -79 years respectively .

 2013 : Report of the task force on comprehensive social

Assistane Programme submitted to the Govt of India.

COMPONENTS
The national assistance programme consist of five sub schemes they are :

Table no . 2 .2
Components of old age pension schemes.

Scheme Eligibility Amount

Indira Gandhi National Aged 60 years and above Rs. 400 per month -60 to
Old Age Pension scheme living below poverty line 79 Rs. 500 above 80
(IGNOAPS)

Indira Gandhi National

Disability Pension Scheme Aged 18 years and above Rs. 300 per month
(IGNDPS)

National Family Benefit Death of a bread -winner

scheme aged 18 - 60 20000

Rs . 300 per month

Indira Gandhi National Widow aged 40 years
Widow Pension scheme and above
( IGNWPS )

Annapurna
Senior citizen 10 kg of free rice

Recent studies of NSAP Show that the social pension schemes are
performing reasonably well and levels of leakage are low and
transactable, 2014 study by the national
burequ of economic research conclude that the Indian government should
increase the
pension amount to lower the risk of poverty among the elderly and work to
expand the
inclusion of the most vulnerable group .

Sevana Pension Scheme

Kerala has the most comprehensive safety net in the country for vulnerable section in
the society . Kerala was the first state to have introduced agriculture workers pension . Sevana
social welfare pension is thecapplication software deployed in the local government with the
intension of providing efficient and transparent mechanism in the social security services
executed through them. It is a web based application developed and
supported by information kerala mission . Currently six types of social
security pensions are being distributed through local bodies (Gram Panchayath, municipalities
and corporations ) through sevena pension application.

Pension Schemes
 National Old Age Pension Scheme
 Widow Pension Scheme
 Pension to the physically challenged persons.
 Pension to unmarried woman above 50 years
 Pension to the mentally challenged persons.
 Agriculture labour pension .

Rural Housing Schemes

In the rural parts of the countries, it is seen that maximum people do not have
proper
roof over their head . They do not have suitable houses to live and to nurture their families. The
maximum percentage of rural population does not have adequate financial strength to build
houses
of their own. Moreover they also do not get the home loan facilities that most of the urban
population
enjoys, Banks are not ready to give them housing loans as they do not have strong assets or
guarantee
for loan approval . so in the case , the central and state govt take initiative for reducing these
situations.

The prime ministers flagship of rural housing scheme called Pradhan Mantri
Awaas Yojana
Gramin under the scheme financial assistance is provided for construction pucca house
to all house
Less and house holds living in dilapidated house. The cost of house shared between
centre and state.
In a recent announcement made by the cental government there is a talk of
implementation of
Awaas scheme for the rural population . This implementation of housing developments
in the
rural areas of the nation will be done under the name of Gramin Awaas Yojana . This
new leg of the
main policy Pradhan Mantri Awaas Yojana called the gramin in dedicated only for the
rural masses.
The details of PMAY.

 Implementing the rural housings scheme of Pradhan Mantri Awaas Yojana.

 Providing assistance for construction of houses in rural areas over the period
years from 2016 -2017 to 2018 -2019 .

 Meeting the additional financial requirement by borrowing through NABARD

The Rural Awaas Yojana especially dedicated to the housing development of the
rural

parts of the country. Almost all states and union territories are being targeted
for the

project work . As per records of the ministry of housing GOVT OF INDIA , the govt
analysed

the number of houses required .

In the rural parts of the countries , it is seen that the maximum people
do not

have suitable houses to live and to nurture their families . The maximum
percentage of

rural population does not have financial strength to build houses of their own .
EMS Housing Scheme

Government of kerala is implementing a housing scheme called EMS

Housing Scheme
through the local self government for providing houses sites to all BPL families who
do not have
them and houses to all houseless BPL families . The funds required for the scheme are
made available
by the cooperatives based on Government guarantee . The principal of the loan has to be
repaid by the local Governments concerned using the development under developed to
them by the state government where as the interest be paid by the state government.

As per the scheme guidelines the beneficiaries to execute an

agreement at the office of Sub Registar for preventing the allienation of
houses for a period of 10 years. This becomes part of the tittle deed and hence the house land
can not be sold . However it can be transferred to the legal heirs of the beneficiary . Also the
beneficiaries are permitted to avail loan from financial institutions pledging the houses for
various purposes . Even after this clarification it is learn that still the financial institutions are
showing reluctance in sanctioning loan to the beneficiaries. The beneficiaries have been
instructed execute the agreement for preventing the wilfull alienation of houses . The
Government in no way intends to prevent the beneficiaries for availing loans from financial
institutions pledging the land / house . It is classified that if the beneficiary fails to repay the loan
availed by him the bank can initiate appropriate action including attachment of the land/house
for realising the loan amount as per the existing law.

Table No. 2.3

Few Datas Regarding Gramin Pradhan Mantri Awaas Yojana

Data’s Details

Name of the Pradhan

project Mantri Awass
Yojana

Project
duration 2016 – 2019

No.of 1 crore
constructed.

Mode of Socio
beneficiary economic
identification and caste
census of
2011

Main National
borrowing Bank for
agency Agriculture
Development
(NABARD)

Labour Mahatma
allocation Gandhi
body for National
building Rural
pucca Employment
houses
Guarantee
ACT

Indira Awaas Yojan

IAY is the flagship rural housing scheme which is being implemented by the
Goverenment of India with an aim of providing shelter to the poor below poverty line . The
Government of India with an aim of providing shelter to the poor below poverty line . The
Government of India has decided that allocation of funds under IAY (Indira Awaas Yogana) will
be on the basis of poverty ratio and housing shortage . The Ministry of Rural Development in
India looks after the rural development and takes care of the rural needs . IAY is one of the many
programmes of the Ministry Ruralv Development . IAY deals with the housing issue and
promises to provide shelter to shelterless . It fulfills the housing need of poor rural people who
are living below the poverty line (BPL) .

Indira Awaas Yojana came in 1985 – 86 as an part of the Rural Landless Employment
Guarantee Programme (RLEGP ) . It was launched to provide uniformity in the policy of rural
housing . There were schemes even before IAY but some schemes used to provide the complete
housing and others used to provide the complete housing and others used to bear just the cost of
construction . IAY continued to be a sub scheme of Jawahar Rozgar Yojana .

Objectives
The objective of IAY is primarily to help construction of new dwelling units as well as
conversion of un serviceable kutcha houses in to pucca / semi - pucca by members of
SC / ST , rural poor below the poverty line by expanding them grant in -aid.

Scope

IAY is a beneficiary -oriented programme aimed at providing houses for SC / ST

households who are the victims of atrocities , households headed by widows / unmarried women
and SC / ST households who are below the poverty line. This scheme has been in effect from 1 st
April , 1999.

Funding
IAY is a centrally sponsored scheme funded on cost sharing basis between the Govt of India and
the states in the ratio of 75 : 25 respectively .
 Table.3.1…..
Allocation and utilization for wage employment programme…
Programmes 2013-14 2014-15 2015-16 2016-17
MGNREGA Allocation 200000 250000 291230 336950
Utilisation 200000 223000 289120 328310
(100%) (89.2%) (99.2%) (97.4%)
Agricultural loan Allocation 540620 823900 191650 150000
Utilisation 530200 823000 191650 111620
(98%) (99.8%) (100%) (74.4%)

MGNREGA
400000

350000

300000

250000 Allocation
Utilisation
200000

150000

100000

50000

0
2013 -14 2014 - 15 2015 -16 2016 -17
 AGRICULTURAL LOAN
900000

800000

700000

600000
Allocation
500000 Utilisation
400000

300000

200000

100000

0
2013 -14 2014 -15 2015-16 2016-17
 Table No… 3.2
Allocation and utilization of fund under social security programmes ….
Social security schemes 2013-14 2014-15 2015-16 2016-17
Library Allocation 10000 80000 28400 50000
Utilisation 10000 80000 28400 50000
(100%) (100%) (100%) (100%)
Hospital Allocation 13500 15000 12000 13500
Utilisation 13500 15000 12000 13500
(100%) (100%) (100)% (100)%
School Allocation 75000 82450 76920 85350
Utilisation 75000 82450 76920 85350
(100%) (100%) (100%) (100%)
Anganavadi Allocation 80000 86400 86400 88000
Utilisation 80000 86400 86400 88000
(100%) (100%) (100%) (100%)
 LIBRARY
90000

80000

70000

60000
Allocation
50000 Utilisation
40000

30000

20000

10000

0
2013-14 2014-15 2015-16 2016-17

HOSPITAL
16000

14000

12000

10000 Allocati0n
Utilisation
8000

6000

4000

2000

0
2013-14 2014-15 2015-16 2016-17
 SCHOOL
88000
86000
84000
82000
80000 Allocation
Utilisation
78000
76000
74000
72000
70000
68000
2013-14 2014-15 2015-16 2016-17

ANGANAVADI
90000

88000

86000
Allocation
84000 Utilisation

82000

80000

78000

76000
2013-14 2014-15 2015-16 2016-17
 Table.3.3….
Fund allocation and utilization of Rural Housing schemes…..
Programmes 2013-14 2014-15 2015-16 2016-17
EMS Housing Allocation 5270200 2440000 3874845 6553185
schemes
Utilisation 5270200 2440000 3874845 6553185
(100%) (100%) (100%) (100%)
IAY Allocation 1302500 2267230 3214300 2050000
Utilisation 1302500 2267230 3214300 2050000
(100%) (100%) (100%) (100%)

EMS HOUSING SCHEME

10000000
9000000
8000000
7000000
6000000 Allocation
Utilisation
5000000
4000000
3000000
2000000
1000000
0
2013-14 2014-15 2015-16 2016-17
 IAY
3500000

3000000

2500000
Allocation
2000000 Utilisation

1500000

1000000

500000

0
2013-14 2014-15 2015-16 2016-17
 Table 3.4…..
Allocation and fund utilization of Old Age Pension schemes………….
Programmes 2013-14 2014-15 2015-16 2016-17
Old age pension Allocation 94600 125360 11840 232600
schemes
Utilisation 94600 125360 11840 232600
(100%) (100%) (100%) (100%)

OLD AGE PENSION SCHEMES

250000

200000

150000 Allocation
Utilisation

100000

50000

0
2013-14 2014-15 2015-16 2016-17

Table3.5………..
Total Expenditure Statement….
Particulars 2013-14 2014-15 2015-16 2016-17
Revenue reciepts 7511420 6087980 7869265 9435685
Revenue 6846300 5896800 7796400 9428420
expenditure
Balance amount 665120 191180 72865 7286
Percentage of 91.14% 96.8% 99% 99.9%
utilisation

EXPENDITUREAND RECEIPTS
Revenue Receipts Revenue Expenditure Column1
9435685
9428420

7869265
7796400
7511420
6846300
6087980
5896800

2013-14 2014-15 2015-16 2016-2017

PART 2
 Table 3.6……
Category No. of respondents Percentage
Below 25 5 10
25-35 9 18
35-45 15 30
Above 45 21 42
50 100

AGE OF RESPONDENTS
Below 25 25-35 35-45 Above 45

10%
18%
42%

30%

Table 3.7
Qualification wise classification
Qualification No. of respondents Percentage
SSLC 27 54
Plus two 10 20
Graduate 13 26
Post graduate 0 0
Total 50 100

QUALIFCATION OF RESPONDENTS
SSLC Plus two Graduate Post graduate

26%

54%

20%

Table 3.8………
Occupation No. of responents Percentage
Agriculture 24 48
Coolie 11 22
Profession 0 0
Others 15 30
Total 50 100

OCCUPATION
Agriculture Coolie Profession Others
30%

48%

22%

Table 3.9………..
Monthly Income wise classification…………
Monthly Income No.of respondents Percentage
Below 3000 18 36
3000-5000 12 24
5000-7000 20 40
Above 7000 0 0
Total 50 100

MONTHLY INCOME
Below 3000 3000-5000 5000-7000 above 7000

36%
40%

24%

Table.3.10……….
Awareness about programmes.
Awareness No of respondents Percentage
Aware 20 40
Not aware 30 60
Total 50 100

AWARENESS
Aware Not aware

40%

60%

Table 3.11…..
Conducting awareness programmes by the LSG………..
Category No. of respondents Percentage
Yes 18 36
No 32 64
Total 50 100

AWARENESS PROGRAMMES
Yes No

36%

64%

Table 3.12………
Source of Awareness……………
Source No.of respondents Percentage
Gramasabha 25 50
Advertisement 3 6
Newspaper 15 30
Officers 7 14
Total 50 100

SOURCE OF AWARENESS
Gramasabha Advetisement Newspaper Officers Total
25%

50%
3%

7% 15%

Table 3.13…………
Benificiaries list……….
Benefit No. of respondents Percentage
Yes 38 76
No 12 24
Total 50 100

BENEFICIARIES LIST
Yes No

24%

76%

Table 3.14…….
Most preferred programmes………….
Programme No. of respondents Percentage
Wage employment 9 18
programme
Social security programme 12 24
Rural husing programmes 24 48
Old age pension scheme 5 10
Total 50 100

PREFERRED PROGRAMMES
Wage employment programme social security programme
Rural housing programmes old age pension scheme

10% 18%

24%

48%

Table 3.15…
Changes in standard of living
Change No. of respondents Percentage
Increase 30 60
Not increase 20 40
Total 50 100

CHANGES OF STANDARD OF LIVING

Increase Decrese

40%

60%

Table 3.16………

Opinion about the change in standard of living………….

Change in standard of living No.of respondents Percentage
No change 10 20
Some extent 12 24
Great extent 28 56
Total 50 100

CHANGE IN STANDARD OF LIVING

No change Some extent Great extent
20%

56%

24%

Table 3.17…………
Are you a beneficiary of more than one programme?……..
Category No. of respondents Percentage
Yes 50 100
No 0 0
Total 50 100

Benificiary of
more than one programme
Yes No

100%

Table 3.18……….
Most beneficial programme…………….
Programme No.of respondents Percentage
Wage employment 15 30
programme
Social security programmes 11 22
Rural housing schemes 16 32
Old age pension schemes 8 16
Total 50 100

MOST BENEFICIAL PROGRAMME

wage employment social security rural housing old age
3%

35%
37%

25%

Table 3.19………
Do you receive any training programe?..........
Category No.of respondents Percentage
Yes 10 20
No 40 80
Total 50 100

BENEFICIARIES OF TRAINING
PROGRAMMES
Yes No

20%

80%

Table.3.20………
Is there any Improvement in economic condition of your panchayath after the implementation of
these programmes?..........
Category No.of respondents Percentage
Yes 30 60
No 20 40
Total 50 100

IMPROVEMENT IN ECNOMIC CONDITION

Yes No

40%

60%

Table 3.21………
Opinion about the poverty alleviation programmes…………
Opinion No. of respondents percentage
Highly satisfied 0 0
Satisfied 22 44
Not satisfied 28 56
Total 50 100

OPINION ABOUT POVERTY ALLEVI-

ATION PROGRAMMES
Highly satisfied saisfied Not satisfied

44%

56%
 INTERVIEW SCHEDULE
1.Name :

2.Gender : Male Female

3.Age : Below 25

25-35

35-45

Above 45
4. No of members in the family :

5.Education : Below 25

Plus two

Graduate

PG

6. Occupation : Agriculture

Business

Profession

Others
7. No of children’s schooling in the family :

8.Monthly income : Below 3000

3000-5000

5000-7000

Above 7000

9.Do you aware about the poverty alleviation programmes : Yes

No

10. Whether proper awareness programmes conducted by Local Self Government : Yes

No
11. Sources of these awareness programmes: Gramasabha

Newspaper

Advertisement

Officers

12.Are you beneficiary of these programmes : Yes

No
13. To which of the following programmes you are benefited:

Wage employment programmes

Social security programmes

Rural housing schemes

Old age pension schemes

14. Has your standard of living increased after becoming part of these programmes ?

Yes

No
15.How much changes affected in your standard of living?

No change

Some extent

Great extent
16.Are you a beneficiary of more than one programme?

Yes

No
17.Which programme is most beneficial for you?

Wage employment programme

Social security programmes

Rural housing pogammes

 Old age pension schemes
18.Do you receive any training programme?

Yes

No
19.Do you feel any change in economic condition in your panchayath after implementing these
programmes?

Yes

No
20.Opinion about the following
Improving the quality of life

Good Average Below average

Skill acquisition

Good Average Below average

Self reliance

Good Average Below average

Increase awareness

Good Average Below average

Financial independent

Good Average Below average

21. What do you think about the poverty alleviation programmes in your panchayath ?

Highly satisfied

Satisfied

Not satisfied