Kerala government declared itself free from extreme poverty on November 1

 

1. It felt good to read about Kerala being the first to eradicate extreme poverty! There has been a lot of discussions on the Kerala model!

    Let us hope that it does not end with just discussions and the rest of the country get on the 'bullock-cart' (!). History has taught us that these well-intentioned acts has a way missing its mark and the money meant for the poor gets siphoned off or goes to those who have the power to grab them! 

    I have been blogging about poverty. I react whenever it is claimed that increase in population is beneficial. Demographic Dividend is the slogan. It is mostly about economics. It is called an investment for the future and it is possible that such investments can go wrong!

    The supporters of DD choose to ignore this risk. Added to this is the desire of many to see their tribe grow in numbers. It is obvious that numbers, especially in a democracy, are a strength. It could be a caste, a religion or an ethnic group!

    There are many studies on poverty! 

2. https://en.wikipedia.org/wiki/Extreme_poverty  is one of them. It gives an overview about poverty in the world. People who silenced me by quoting that it  is all over the world are right.

I found one which focuses on India. I am sure there are more.

 https://en.wikipedia.org/wiki/Poverty_in_India. 

According to the World Bank’s Spring 2025 Poverty and Equity Brief, approximately 171 million people in India moved out of extreme poverty between 2011 and 2023, with the poverty rate declining from 16.2% to 2.3% based on the international poverty line of $2.15 per day. The report attributed this reduction to sustained economic growth and a range of targeted government initiatives. These included the Pradhan Mantri Jan Dhan Yojana, which expanded financial inclusion through over 550 million bank accounts, and the Aadhaar digital ID system, which enabled more efficient welfare distribution to over 1.42 billion individuals, saving ₹3.48 lakh crore by March 2023 through Direct Benefit Transfers. Health access was improved under the Ayushman Bharat scheme, which provides ₹5 lakh in annual health insurance and had issued over 410 million health cards. Additional programs such as Stand-Up India and PM Vishwakarma Yojana supported entrepreneurship among marginalized groups and artisans through loans and training, while the Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY) ensured food security for more than 800 million people.^[132]

Very impressive numbers! I am just quoting from Wikipedia. Let there not be a shouting match we see on the  TV. Poverty is a highly political issue. Where blame is thrown freely on the party you don't like, people you are not happy with and so on!

Being an idealistic person (fool?), I do dream the subject of poverty should be beyond vote bank politics. Neither should it be a retribution for the actions of the past! 

How much money is required by the whole country to eliminate extreme poverty?:

We can calculate the money necessary based on World Bank report! Of course disputable, but we could come to some consensus. 

2.3% of our present population of 1420 crore  is 32.66 crores

$2.15 * 32.66 =70.219 crores per day in USD.

70.219* 365 =25,629.935 crores per year in USD

Practically we can estimate that most B P Line people would have some income. Let us assume overall we need half of 25, 629.935 crores. Which comes to 12,814.9675 crore dollars per year. It will be staggering in rupees.

12,814.9675*88.81 (rate as of 21 Nov)  =1,138,097.263675 

 *let us round it off to 1,138,097 crores of rupees.

Let us compare it to Indian budget for 2025 -26. 

 An expenditure of 5,065,000 crore of rupees is budgeted. 

Possible solutions to budget this Huge amount of money needed!

We can ask the other departments which are spending the money to give up a part of their budget!

Understand Americans are experts in convincing others to loan them money or buy their bonds.

Old fables would tell us that the king urged his citizens to drop their contributions in a box  kept in front of the palace! 

The top 1% of the Indian rich can do their bit?

Or the old tradition of taking care of poor by adopting a family and earn merit!

Going back in time, we can think of performing an Ashwameda Yagna for money to pour in! Not easy!

Press reports

2. 1. frontline.thehindu.com › the-nation › kerala-extremeInside Kerala’s Bid to End Extreme Poverty—and Its Critics

    13 hours ago · Kerala’s extreme poverty-free claim sparks debate as communities question gaps in the flagship EPEP programme.   economictimes.indiatimes.com › opinion › et

   Kerala’s end of extreme poverty: How a lower-middle-income ...

    

   2.      2.  economictimes.indiatimes.com › opinion › e Nov 12, 2025 · The starting point for poverty reduction matters a great deal. Kerala has had a comparatively favourable income equality. Its Gini coefficient has been closer to 0.3 compared ....

    

        3.scroll.in › article › 1088238As Kerala eradicates extreme poverty, what are the lessons ...Nov 4, 2025 · In a country where discussions on poverty often circle around statistical debates, Kerala’s declaration invites a deeper reflection on what it means to ensure that no one is left behind.

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5. 4. https://scroll.in/article/1088455/the-outlaw-still-hides-at-home-rethinking-keralas-poverty-debate

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