Universal Basic Income scheme is ripe for a nationwide debate.
An income for everyone
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Times (post demonetization) are difficult for the Indian welfare state. The govt. is seriously considering a Universal Basic Income (UBI) scheme for the really needy. There are three issues of the scheme worth discussing : (1) Does it provide specific benefits as a poverty alleviation tool?, (2) What delivery system would the govt. adopt for its transfer? and (3) Will some existing welfare schemes be discontinued?
Several studies conducted in this respect indicate that cash transfers do not shift peoples’ spending habits from nutritious foods. Even a small basic income has a positive impact on nutrition, health, indebtedness and investment. The question is how the govt. will distribute the basic income grants and verify delivery through Indian banks’ poor banking and digital payment networks? Unique Aadhar number linkage is still facing problems. There are also difficulties in implementing the scheme, as studies show that there are variations in people preferring in-kind transfers over cash transfers and vice versa. The policy makers will also have to consider the administrative machinery required for its proper implementation and beneficiary identification. Do we have that as of now? The Economic Survey should be taken as an opportunity to generate a debate on UBI implementation and plugging the delivery gaps.
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