Above Poverty Line: Definition, Criteria, and Socioeconomic Impact

Above Poverty Line: Definition, Criteria, and Socioeconomic Impact

Introduction

The term Above Poverty Line (APL) is used to categorize individuals and households that have an income above the officially defined poverty threshold set by governments. In India and other developing economies, the classification of people as Below Poverty Line (BPL) or Above Poverty Line (APL) plays a crucial role in determining eligibility for various government subsidies and welfare schemes.

This article explores the definition, criteria, implications, and challenges associated with the APL classification.

Understanding Above Poverty Line (APL)

APL refers to households that earn more than the prescribed poverty line income set by the government. While APL households are not classified as poor, their economic stability can vary widely, ranging from lower-middle-class families to affluent ones.

Poverty Line Determination in India

The Government of India determines the poverty line based on per capita income and consumption levels, as recommended by expert committees. The criteria are periodically revised to adjust for inflation and economic changes. Some key methodologies include:

Tendulkar Committee (2009) – Based on monthly per capita expenditure, considering food, health, and education costs.

Rangarajan Committee (2014) – A revised approach that raised the threshold for determining poverty.

Households earning above these defined thresholds fall under the APL category.

APL and Government Schemes

Although most welfare schemes focus on BPL families, APL households can still access certain benefits. Some government programs applicable to APL individuals include:

1. Food Security and Ration Schemes

Under the Public Distribution System (PDS), APL families receive rationed food grains at subsidized rates, although their entitlements are lower than BPL families.

2. Health and Education Schemes

Some health insurance programs offer coverage to APL families at a reduced premium.

Subsidized education schemes, scholarships, and skill development programs benefit APL students.

3. Employment and Housing Support

Pradhan Mantri Awas Yojana (PMAY) provides housing benefits to lower-income APL families.

Government-led employment programs and microfinance opportunities support economic growth among APL households.

Socioeconomic Impact of APL Classification

1. Economic Stability and Growth

APL households contribute significantly to the economy through consumption, employment, and entrepreneurship. Their improved purchasing power drives industrial and service sector growth.

2. Limited Access to Government Benefits

While APL families have a better financial standing than BPL groups, many still struggle with healthcare, education, and housing costs due to limited subsidies.

3. Income Disparities within APL

The APL category covers a broad range of income levels, leading to inequities in financial stability. Some APL families barely surpass the poverty line and remain economically vulnerable.

Challenges and Future Considerations

1. Redefining APL Criteria

Governments need to reassess income thresholds to ensure fair access to welfare programs for those at risk of poverty.

2. Expanding Welfare Coverage for APL Families

Introducing targeted subsidies for low-income APL families can prevent them from falling back into poverty.

3. Bridging the Income Gap

Policies focusing on skill development, entrepreneurship, and job creation can help APL families transition into the middle class.

The Above Poverty Line (APL) classification plays a crucial role in economic planning and welfare distribution. While APL families are not considered poor, many still require financial and social support to maintain stability. By revising poverty assessment criteria and expanding targeted welfare programs, governments can ensure inclusive growth and economic security for all.