5.26        ndian    onom
     recommended moving away from anchoring the           the GDP. Similarly, the revenue deficit of the
     poverty lines to the calorie intake norm, adopting   Centre increased from 1.1 per cent in 2007–08
     the Mixed Reference Period (MRP) based               to 4.5 per cent in 2008–09 and further to 5.2 per
     estimates of consumption expenditure as the basis    cent in 2009–10 and declined to 3.4 per cent for
     for future poverty lines, adopting MRP equivalent    2010–11 (RE). As per 2011–12 (BE), the revenue
     of urban Poverty Line Basket (PLB) corresponding     deficit is projected at the same level of 3.4 per cent
     to 25.7 per cent urban headcount ratio as the new    of the GDP. The increase in the deficit levels of
     reference PLB for rural areas. On the basis of the   the Centre owes to revenue foregone on account
     above methodology, the all-India rural poverty       of reduction in indirect tax rates and enhanced
     headcount ratio for 2004–05 was estimated at         public expenditure in order to boost demand in
     41.8 per cent, urban poverty headcount ratio at      the economy amidst global meltdown.
     25.7 per cent and all India level at 37.2 per cent.       The issue of Price Stability remained
     It may however be mentioned that the Tendulkar       resonating for more than half of the Plan
     Committee’s estimates are not strictly comparable    period. To ward off the crisis of rising prices,
     to the present official poverty estimates because of the government needed to announce several tax
     different methodologies. As has been indicated in    concessions at one hand, while it could not pass
     the Mid-Term Appraisal of the Eleventh Five Year     the burden of the costlier imported oil prices on
     Plan, the revised poverty lines and poverty ratios   the masses. That would have resulted in ultimately
     for 2004–05 as recommended by the Tendulkar          putting the exchequer in a fund-crunch mode,
     Committee have been accepted by the Planning         at the end, creating a short-supply of investible
     Commission. The Tendulkar Committee has              funds in government’s hand, hence, causing the
     specifically pointed out that the upward revision    Eleventh Plan to perform at the levels below its
     in the percentage of rural poverty in 2004–05,       target.
     resulting from the application of a new rural
     poverty line, should not be interpreted as implying  Twelfth Plan
     that the extent of poverty has increased over time.  The ‘Draft Approach Paper’ of the Twelfth
     These estimates, as reported by the Committee,       Plan (2012–17) was prepared by the Planning
     clearly show that whether we use the old method      Commission after widest consultation till date—
     or the new, the percentage of the population         recognising the fact that citizens are now better
     below poverty line has declined by about the same    informed and also keen to engage. Over 950
     magnitude.                                           civil society organisations across the country
          The performance on the Fiscal Scenario,         provided inputs; business associations, including
     according to the Planning Commission, the            those representing small enterprises have been
     expansionary fiscal measures taken by the            consulted; modern electronic and ‘social media’
     government in order to counter the effects of the    (Google Hangout) were used to enable citizens
     global slowdown were continued in 2009–10,           to give suggestions. All state governments, as
     and this led to further increase in the key deficit  well as local representative institutions and
     indicators. The fiscal deficit of the Centre, which  unions, have been consulted through five regional
     was 2.5 per cent in 2007–08 increased substantially  consultations. Though the Approach Paper for the
     to 6.0 per cent in 2008–09 and further to 6.4 per    Plan was approved by the NDC by mid-2011, the
     cent in 2009–10, but it declined to 5.1 per cent     Plan Document was finalised much later after the
     in 2010–11 (RE) and the Budget Estimates for         launch of the plan (like the Tenth and Eleventh
     2011–12 put the fiscal deficit at 4.6 per cent of    Plans).