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Monday, June 25, 2018

Poverty line: WB not to cut India loans

Reduction in number of poor according to poverty line data raised prospects of a cut in lending.

Written by Agencies | Mumbai | Published: March 22, 2012 1:37:51 pm

The World Bank will not reduce financial assistance to India for poverty alleviation measures because of the recent official data that showed a decline in the number of poor people in the country.

The international funding agency takes a long-term view on its commitments and the poverty data released on Monday will not have any bearing on that commitments,World Bank Country Head N Roberto Zagha said on the sidelines of an event here yesterday.

Zagha said,however,that the Bank does use official data put out by Indian agencies while making its plans. “We are constantly analysing (data),and right now I don’t feel there will be any cut because the data have shown a reduction in poverty.”

The Washington-based multilateral lender envisages lending USD 14 billion for projects in the country between 2009 and 2012,according to the Bank’s country website.

According to the data by the Planning Commission,the number of people under the poverty line – whose daily consumption is below Rs 28.65 for urban centres and Rs 22.43 for rural areas – declined to 29.8 per cent in 2009-10,from 37.2 per cent in 2004.

Zagha welcomed the Union Budget 2012-13 that was presented to Parliament last week,calling it “realistic”.

He said,however,that energy,uneducated labour force,increased urbanisation and regulatory issues are the challenges being faced by the country at present and demand added attention of policymakers.

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