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Abstract
Poverty is an issue in modern India as large number of people is still living Below the Poverty Line (BPL),Of course in the world many countries of Asia, Africa and Latin America have been suffering seriously about this problem. Poverty reduction means designing, implementing and targeting appropriate methods to ensure that scarce resources are allocated in such a way get maximum impact on the poor and decrease their level of deprivation and vulnerability (Sen.1999, World Bank, 2001). Decentralisation is linked to poverty reduction in many ways. While decentralization has become a development strategy of many developing countries, its linkage to poverty reduction in particular has been the subject of recent time. Poverty is an issue in India as large number of people is still living below the poverty line (BPL). poverty is related to basic needs like food ,shelter, cloth vis-à-vis safe drinking water, health and education. Father of the nation, Mahatma Gandhi was worried about the poor of our country. After independence, Government of India was serious to tackle the problem. Several steps were taken to eradicate poverty in the country. However, poverty is more conspicuous in rural India than urban India in terms of number of population. Ministry of rural development has been spending huge amount of money for the rural development where major share of money is spent on poverty eradication programmes.