Below Poverty Line | Full Form of BPL, History and Benefits

What is Below Poverty Line?

The minimum income required to maintain a minimal standard of life is referred to as the Below Poverty Line. BPL stands for Below Poverty Line. This is frequently used in government or social policy discussions as a tool for measuring and focusing on anti-poverty initiatives. It may also be used more broadly to refer to any economic position in which it becomes difficult for someone to sustain even the most basic level of living.

The basic poverty line can be calculated in different ways. The most popular method includes analysing essential costs like food, clothes, and housing. Another popular strategy includes utilising survey data in which respondents are asked how much money they require on a monthly or annual basis to live. The basic poverty line is usually determined on a national basis. It can; however, also be determined at the regional or local level. This is useful when comparing poverty levels across different places.

Full Form of BPL

Below Poverty Line is the full form of BPL. The Indian government uses this criterion to identify those citizens who have lower means and need the government’s help to survive. This benchmark is often based on the least daily wage an individual must make in order to be considered for living below the poverty line. A survey indicates that between 25 and 30 percent of Indians live below the poverty line.

History of BPL

The Planning Commission Task Force in 1962 suggested a minimum standard of living, which is ₹20 (per person) in rural regions and ₹25 (per person) in urban regions, with no state-funded healthcare or education. After the 1970s, the criteria for the lower BPL level were amended again, and now include the daily minimum income of ₹49.1 for rural areas and ₹56.7 for urban areas. respectively. Later, in 1993, a committee of experts divided the concept of aggregate poverty line into the definition of state level, with each state’s poverty limit stated independently. Then in 2012, the poverty line in rural India was ₹972; in urban India, it was ₹1,407. During that time, according to reports about 29.5% of Indians lived below the poverty line in that year. The Rangarajan Panel reported that in 2014, 454 million people, equivalent to 38% of the population, were living in extreme poverty in the country.

Parameters that Define BPL

As per the World Bank’s standards, individuals living on less than $1.25 per day are considered to be living in poverty. However, India initially utilised a sustaining food standard to establish the poverty line before shifting to an individual’s spending over a set period of time for a basket of necessities. Food, transportation, clothing, rent, fuel, power, and education were all included in this basket of goods.

Benefits of BPL Card

BPL cards are issued by the government to identify the families who are living below the poverty line. Some of the benefits of a BPL card are as follows:

1. Identification of families that are below the poverty line: In order to properly identify the families that are below the poverty line and provide them with financial and non-financial assistance for their support and upliftment, the government issues BPL cards to them.

2. Assistance to families that are below the poverty line: The government provides assistance to this group of people through specific grants, scholarships, and reservations in government positions and educational institutions. In addition, it conducts a number of income-generating initiatives to train people in entrepreneurship through financial institutions.

3. Conducting several programs to help people living below the poverty level: Additional programs include National Rural Health Mission, the Sarva Shiksha Abhiyan (SSA), National Rural Employment Guarantee (NREGA), and Rashtriya Swasthya Bima Yojana (RSBY). Children from low-income families can access education through Sarva Shiksha Abhiyaan, people living in rural areas can access healthcare through the National Health Rural Mission, and people in economically disadvantaged groups can obtain 100 days of guaranteed employment through the National Rural Employment Guarantee. The people living below the poverty level are given access to health insurance through RSBY. BPL families are also given food at discounted prices by the government.

Difference between BPL and APL

Basis	BPL	APL
Income Range	In this case, household income is less than ₹15,000.	In this case, household income is greater than ₹15,000 but less than ₹1,00,000.
Benefits	People get food grains, and fuel at a discounted price and with priority.	People get subsidised food grains and fuels at an increased cost.

Benefits of the BPL Ration Card

In order to qualify for a BPL ration card, a family’s annual income must not exceed ₹15,000, and they must also be on the IRDP List from 1997–1998. The cardholders can receive 25–35 kilograms of food grains at discounted prices.

1. Medical Relief

Under the Rashtriya Arogya Nidhi (RAN) programme, BPL cardholders are also eligible for medical aid at the central government’s super specialty hospital for serious illnesses. The plan’s initial coverage amount per BPL card was ₹2 Lakhs; however, it was later raised to ₹5 Lakhs.

2. Education

Students from underprivileged families receive major benefits from the BPL card. These advantages include discounts on private school tuition, scholarships, programs to improve job skills, admission preferences for prestigious universities and colleges, and financial support for higher secondary and vocational education. The education benefits differ from one state and one institution to another. These benefits don’t always get to the poor since those living in extreme poverty are not aware of them.

3. Bank Loan

India has launched a financial inclusion campaign to provide banking services to the population in order to formalise the economy and close any gaps in direct benefit transfer. The government has also launched credit programs like Swarna Jayanthi Shahri Rozgar Yojana (SJSRY) and Swarna Jayanti Gramme Swarozgar Yojana (SGSY) to assist BPL families.

Urban BPL cardholders may use a loan of up to ₹50,000 under SJSRY to start their own businesses. 15% of the cost is provided as a subsidy, subject to a maximum limit. In rural India, SGSY offers loans for opportunities for self-employment. Loan amounts available to applicants range from ₹50,000 for an individual to ₹6.25 lakhs for a group. For loans above ₹50,000, a margin requirement of 20% is applicable. Moreover, individuals receive a 30% project cost subsidy (up to a maximum of ₹7,500 for general projects and ₹10,000 for SC/ST projects), and organisations receive a 50% project cost subsidy (up to a maximum of ₹1.25 lakhs for groups).