International Journal of Social Science Research (IJSSR)

Do Below Poverty Line Households in India Belongs to the Poorest Wealth Quintile? Evidence from NFHS-5 Data

Exact identification of poor household is very essential for the implementation of social and welfare programs in India. The Below Poverty Line (BPL) categorization has long been used by government to target subsidies and welfare schemes for economically deprived populations. However, questions keeps regarding whether households’ identified as BPL actually correspond to poorest section of society in a country. This study examines the relationship between BPL status and household wealth quintile using data from the NFHS-5. The NFHS wealth index, which categorized households into five wealth quintiles based on asset ownership and living conditions, is used as a comparative measure of economic status. Using descriptive statistics and cross tabulation analysis, the study explores the distribution of BPL households across different wealth quintiles and evaluates the extent of mismatch between administrative poverty identification and asset based wealth classification. The findings reveals that while a substantial proportion of BPL households fall within the poorest wealth quintile, a notable share is falls across higher wealth quintile categories, indicating possible targeting errors in poverty identification. Such as discrepancies suggest both inclusion and exclusion errors in welfare program targeting. The study point out the problems with the traditional way of identifying poor people and says that we need better ways of doing it that take into account many different factors. The findings are important for the people who make policy decision and to make sure that poverty alleviation programs in India are fair and effective.