Ending poverty in all forms and dimensions by 2030 is the first goal of the UN’s sustainable development goals (SDGs). Therefore, the identification of the poor and the evaluation of the extent of poverty have received considerable attention in the design of cost-effective poverty reduction programmes and safety nets. The degree of poverty should be estimated in order to assess the budgetary needs / implications of safety nets and to evaluate these programmes. The measurement of poverty has important policy implications. Poverty is one of the indicators used to determine the respective share of each province in the divisible pool of federal transfers to the provinces, through the National Finance Commission (NFC) Award.

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