Himachal Pradesh Factfile Being a Sub-Himalayan state, Himachal

Pradesh has a varied climate that changes with

altitude. The climate ranges from warm and sub-

humid tropical at low altitudes to cold and icy at

high altitudes. There are three main seasons:

winter from October to March, summer from April

to June and rainy from July to September

H.P came into existence on 15th April 1948 &

attained State hood on 25thjanuary 1971

Himachal Pradesh is located in the Northern

region of India. The state is surrounded by

Jammu & Kashmir on the North, Punjab on the

West and the South-West, Haryana on the South,

Uttar Pradesh on the South-East and China on the

East.

Parameters Himachal

Pradesh

Capital Shimla

Geographical area (sq km) 55,673

Administrative districts (No) 12

Population density (persons per sq

km)* 123

Total population (million)* 6.85

Male population (million)* 3.47

Female population (million)* 3.38

Sex ratio (females per 1,000 males)* 974

Literacy rate (%)* 83.8

Source:-Census,2011 Net Area Sown=539462 Hectare

Irrigated Area=107852 Hectare

Rainfed Area= 75% of the net sown Area

Indicator Himachal Pradesh

(Census 2011) All India

Population (Crore) 0.68 121.01

Decennial Growth rate 12.95 17.64

Population Density per Sq km 123 368

Rural Population (as % of total ) 89.97 68.84

Literacy rate (All Persons) 82.80 73.0

Male Literacy rate 89.53 80.90

Female Literacy Rate 75.93 64.60

Sex ratio 972 943

Sex ratio (0-6 years) 909 919

Life Expectancy (2006-10) 70.0 66.1

Infant Mortality Rate (SRS 2013) 35 40

Crude Birth Rate (SRS 2013) 16.0 21.4

Crude Death Rate (SRS 2013) 6.7 7.0

Demographic Indicators

Poverty Situation In Himachal Pradesh

Though Himachal has been doing well in many areas such as sanitation, eduacation, health, social welfare, horticulture,agriculture,tourism etc.

However Relative Poverty do exists because of the various economic and social causes.

BPL Census prior to the 10th Five year plan:- Was based on Annual income or per capita expenditure.

BPL Census for the 10th Five year plan :-Based on normative approach and Score based Ranking

was introduced. Maximum ceiling for the State was kept at 282370 households. State Specific criterias introduced were:-

Household having ownership of more than two hectares of unirrigated land or more

than one hectae irrigated land.

The Households having Pucca urban type big houses

Income tax payer households

Households having four wheel vehicles like car, motor ,jeep, tractor, bus etc.

Households earning regular monthly income Rs. 2500 from

salary,pension,honorarium,wages ,profession etc.

Reviews of BPL List :- Done in 2008,2011, and 2013

SECC:- Completed for the identification of BPL families for 12th Five year Plan.

0

10

20

30

40

50

34.6

22.9

9.5 8.1

45.3 37.2

29.8

21.9

Pove

rty

Head

coun

t Rat

io

Year

Poverty Head Count Ratio

HIMACHAL PRADESH INDIA

Calculated on the basis of Tendulkar method.

In India, Poverty head count ratio declined from 45.3% in 1993-94 to

21.9% in 2011-12.

Four fold decline in poverty in Himachal Pradesh in two decades period

since 1991 from 34.6% to 8.1%.

Himachal Pradesh India

Per cent share of

persons to Total

persons

ST 7.2 8.9

SC 23.0 19.0

OBC 18.9 44.1

Others 50.8 28.0

All 100 100

Per cent share of

poor to total poor

ST 8.3 17.4

SC 45.5 25.4

OBC 6.6 41.4

Others 39.7 15.8

All 100 100

Percentage distribution of Poor by Social

Group (2011-12)

Source:-Radhakrishnan, R (2015): “well being, inequality, Poverty and Pathways out of Poverty in India” Economic & Political weekly, Vol No October, pp 59-71

Movement of Per Capita Income

0

20000

40000

60000

80000

100000

120000

1970-71 1990-91 2014-15 (A)

651 4910

104943

823 6270

86879

Ru

pe

es

Year

Himachal Pradesh Per Capita Income (In Rs.) at Current Prices

All India Per Capita Income (In Rs.) at Current Prices

Revenue Receipts/Debt Liability/Quality Of

Expenditure

REVENUE RECEIPTS 2015-16, BE,(Rs. in Crore)

Total Revenue Receipts 7847.20

Basis of Low Revenue

Receipts

Low tax base, Tax to GDP Ratio just 6% as compared to 9.3%

at the national level, and slow pace of growth of power sector

due to general slow down at the national level

Percentage of debt liabilities to GSDP

(2014-15)

Himachal Pradesh 39.30

All India 21.20

Per Capita Debt Liability in Rs.

(2014-15)

Himachal Pradesh 47,284

All India 21,307

*Debt liabilities both in terms of

percentage of GSDP and also per capita

two times the national average

Debt Liabilities

SOE 2015-16 BE

1. SALARIES 8284.71

2. WAGES 152.80

3. GRANT – IN – AID (SALARY) 874.31

4. GRANT-IN-AID (NON SALARY) 1473.77

5. GRANT-IN-AID (CAPTAL ASSETS) 530.30

6. PENSIONS 4040.72

7. INTEREST 2950.00

8. MAINTENANCE 1837.81

9. MAJOR WORKS 2604.39

*Very high proportion of expenditure on committed

liabilities leaving a little for expenditure on development

works

Quality Of Expenditure

State Specific Innovations introduced Sanitation sector :-

Mahrishi Valmiki Sampooran Swachhata Puruskar (MVSSP) for the Gram Panchayats doing the best work in sanitation

Mahila Mandal Protsahan Yojana for best Mahila Mandals

School Sanitation Reward scheme also for best Schools

Due to these following outcomes have come;- IHHL achievement at present is 94%and we are second to Kerala in

country

Housing Sector :- Rajiv Awaas Yojana for all categories .

Mukhya Mantri Awaas Yojana for general BPLs

Agriculture/Horticulture Sector :- Kisan Bagwan Samridhi Yojana (Part-I &II)

Tourism sector :-

Home Stay scheme,2008

Employment Sector:-

Skill Development allowance scheme,2013 to upgrade the Skill level of unemployed youth and increase employability

Suggestions and recommendations of

Himachal Pradesh

on

contents of the paper

Measuring Poverty

• Whatever NITI decides between Tendulkar or

Rangarajan Poverty lines, we will endorse it

but any method adopted by the NITI for the

measurement should not be disadvantageous to

the State of Himachal Pradesh which has high

socio-economic indicators and per capita

income.

B .Strategy to combat poverty

Employment Intensive Sustained Rapid Growth

- We endorse most of the recommendations of the paper with some suggestions reference to Himachal Pradesh.

1.Economy of HP is basically rural and most of the rural families are dependent upon agriculture and allied activities.

2. 75 % of the net sown area is rain –fed.

3.Bringing more area under irrigation ,promoting of off season vegetables and temperate fruits, adopting poly houses , organic farming , improving cattle breeds and linking small holder livestock keepers to better paying markets can definitely help eradicate poverty.

4. Horticulture plays in important role in the economy of Himachal Pradesh but land holding is small so providing self employment opportunities through adoption of ancillary activities that require little or no land such as Nursery production Mushroom cultivation , green house cultivation of flowers can help eliminate poverty .

5 Himachal has large Tourism potential , taking the benefits of tourism activities to the rural and off beat areas of the State needs to be developed and the skills of its workforce / youth needs to be enhanced so as to give occupational opportunities to all section of society.

6. To attract Industrial investment in organised labour intensive sectors such as food manufacturing , pharmaceutical etc. To the industrially backwards areas of the State – Central Industrial Package is required on the analogy of NER and J & K so as gainful employment opportunities in industry be created and socio –economic issues of interiors of State in general and poverty elimination in particular be addressed .

B2 Making Anti-Poverty Programmes more effective

• We endorse most of the recommendation made in paper regarding making

anti-poverty programmes such as PDS , MDMS , MGNREGA , Housing

for all etc. more effective but again reiterate few suggestions particularly in

reference to our State.

• 1 Bio-metric reading for PDS , convergence of MDMS with school

health programmes, relaxing the proportion of expenditure on materials

and allowing the use of contractors in material component in MGNREGA

and modification of the Scheme to impart skills, (Jan Dhan, Aadhaar and

mobile) trinity correspondent initiative to DBT, lifting of five poorest

families in each village out of poverty – are good imitatives.

• 2. The idea of restricting MGNREGA to only some poorest Blocks particularly in our State, be exempted.

• 3.In addition there is difference in the wage rate of MGNREGA and minimum wage rate notified by the State Government.

• 4. Himachal Pradesh is nearing the ODF Status, therefore we have started emphasis on SLWM

• – there is urgent need that IEC fund allocation be increased to atleast 10-15% of the Programmes allocation (from existing 8%)

• - Being hilly State presently allocated amount for Gram Panchayats for SLWM @Rs.4666 per household should be increased atleast Rs.7000 per household.

• - Strategy of IHHL incentive be applied to liquid waste management by fixing some amount per soak pit per HH, this will go a long way in managing the liquid waste almost completely and in recharging the ground water.

• 5. RKVY

– The States giving 10% or more allocation to Agriculture and Allied in their State Plan should be incentivized by giving special allocation and eligibility criteria should be relaxed for such States.

– Different allocation criteria /parameters need revisiting at GOI level so that these could be beneficial to the smaller/hilly State.

6. Central Capital Investment subsidy & Freight Subsidy scheme of the Ministry of Commerce & Industry (Deptt. of Industrial Policy & Promotion), GOI needs to extended at least for another 5 years i.e upto 2022.

7. MIDH & RKVY – For this purpose , various incentives are being provided to the interested youths for the adoption of above specialized activities. There is need to bring changes in existing centrally sponsored schemes viz. MIDH & RKVY and inclusion of new schemes so as to eliminates the poverty e.g. liberal Financial Assistance for Ropeways in public sector, Community Solar fencing under MIDH.

OTHER STRATEGIES REQUIRED FOR POVERTY REDUCTION

• Faster Growth

• Developing Capabilities – Human, Institutional and Implementation Cabilities

• Accelerated employment opportunities

• Pro-poor development strategies

• Thrust to rural areas

• Creating synergies among different sectors

• Equity

• Promoting social inclusion

OTHER STRATEGIES REQUIRED FOR POVERTY REDUCTION (contd.)

• Development of Infrastructure

• Improving Public Service Delivery

• Minimum government, Maximum governance

• Promoting ease of doing business in all sectors

• Welfare of poor and vulnerable

• Transforming Unorganized sector

• Gender empowerment

Summing Up

Poverty is a multi-dimensional issue, and requires multi-

dimensional interventions and strategies.

HP has got high achievements in various Socio economic

indicators including poverty reduction and per capita income.

Various reasons make HP one of the best governed States in the

country. However economic resources are inadequate to meet the

ever increasing demand of funds for economic development.

Any criterion for funds allocation to the State should not be

disadvantageous to the State because of its comparatively better

levels of development.

Ultimately poverty elimination strategies should focus on people

and should be made target oriented.

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