{"id":29401,"date":"2024-09-13T18:42:55","date_gmt":"2024-09-13T13:12:55","guid":{"rendered":"https:\/\/www.nextias.com\/ca\/?p=29401"},"modified":"2024-09-14T10:16:48","modified_gmt":"2024-09-14T04:46:48","slug":"universal-basic-income-3","status":"publish","type":"post","link":"https:\/\/www.nextias.com\/ca\/current-affairs\/13-09-2024\/universal-basic-income-3","title":{"rendered":"Universal Basic Income"},"content":{"rendered":"\n<p><strong>Syllabus: GS3\/Financial Inclusion<\/strong><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Context<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Due to the phenomenon of <strong>jobless growth<\/strong>, i.e., the rise in output and labour productivity without the commensurate growth in employment generation, several countries have mooted the idea of a <strong>universal basic income (UBI).<\/strong><\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>About<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>This idea has gained traction, especially since the International Labour Organization (ILO)\u2019s most recent World Employment and Social Outlooklinks the <strong>decrease in jobs growth and the increase in inequality<\/strong> to a surge in automation and the use of artificial intelligence (AI).\u00a0<\/li>\n\n\n\n<li>Among the several suggestions on the ways to address this is a UBI.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>What is Universal Basic Income (UBI)?<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>It is a <strong>social and economic policy<\/strong> where a government provides all citizens with a regular, unconditional sum of money, regardless of their income, employment status, or other factors.\u00a0<\/li>\n\n\n\n<li>The primary goal is to <strong>ensure a basic level of financial security<\/strong> for everyone and to reduce poverty and income inequality.<\/li>\n\n\n\n<li><strong>Key aspects of UBI:<\/strong>\n<ul class=\"wp-block-list\">\n<li><strong>Unconditional:<\/strong> Unlike some welfare programs, UBI is given to everyone without conditions.\n<ul class=\"wp-block-list\">\n<li>There are no requirements to prove financial need or to work in order to receive the payment.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Regular: <\/strong>Payments are made on a regular basis (e.g., monthly) to ensure a steady income flow.<\/li>\n\n\n\n<li><strong>Universal: <\/strong>It is provided to all citizens, regardless of their income level or employment status.<\/li>\n\n\n\n<li><strong>Basic:<\/strong> The amount is typically designed to cover basic living expenses, though the exact amount can vary depending on the country or region implementing it.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-background\" style=\"background-color:#fff2cc\"><tbody><tr><td><strong>Similar Programs in India<\/strong><br>&#8211; <strong>Pradhan Mantri Jan Dhan Yojana (PMJDY):<\/strong> Launched in 2014, this scheme aimed to increase financial inclusion by providing access to banking services for all citizens.\u00a0<br>1. While not a UBI, PMJDY facilitates the direct transfer of benefits to people&#8217;s bank accounts, laying the groundwork for broader cash transfer programs.<br><strong>Direct Benefit Transfer (DBT):<\/strong> This system is used to transfer subsidies for various government schemes directly to beneficiaries\u2019 bank accounts.\u00a0<br>1. It&#8217;s a step towards a more efficient and transparent way of delivering financial aid but is targeted rather than universal.<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Arguments in favour of Universal Basic Income in India<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Poverty Alleviation:<\/strong> UBI could significantly reduce poverty by providing a guaranteed income to all citizens, ensuring that even the most vulnerable populations have a basic level of financial security.<\/li>\n\n\n\n<li><strong>Simplification of Welfare Programs:<\/strong> UBI could streamline and simplify the existing welfare system.\n<ul class=\"wp-block-list\">\n<li>Instead of managing multiple targeted schemes with complex eligibility criteria, a universal payment system could be more straightforward and reduce administrative costs and inefficiencies.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Reduction of Bureaucracy and Corruption:<\/strong> Direct cash transfers to all citizens would be more transparent and less susceptible to misuse compared to targeted subsidy programs.<\/li>\n\n\n\n<li><strong>Support for Informal Sector Workers:<\/strong> Many people in India work in the informal sector without job security or benefits. UBI could provide a form of social protection for these workers, who are often excluded from traditional welfare schemes.<\/li>\n\n\n\n<li><strong>Boost to Consumer Spending: <\/strong>By putting money directly into the hands of people, UBI could stimulate consumer spending, which is a key driver of economic growth.\u00a0<\/li>\n\n\n\n<li><strong>Improved Public Health and Education: <\/strong>With a basic income, families will be empowered to afford healthcare and education, leading to improved health outcomes and higher educational attainment, which can contribute to long-term economic development.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Arguments Against Universal Basic Income in India<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>High Cost:<\/strong> Providing a basic income to all citizens would require a substantial increase in government expenditure, potentially leading to budget deficits or increased taxes.<\/li>\n\n\n\n<li><strong>Inflation Risks:<\/strong> There&#8217;s a concern that UBI could lead to inflation. It may also lead to mindless expenditures and add to debt.<\/li>\n\n\n\n<li><strong>Reduction in Work Incentives:<\/strong> Some argue that a guaranteed income might reduce the incentive for people to work or seek employment, particularly in low-wage jobs.<\/li>\n\n\n\n<li><strong>Implementation Challenges:<\/strong> Setting up and managing a UBI program in a country as diverse and complex as India could be challenging.<\/li>\n\n\n\n<li><strong>Equity Concerns:<\/strong> Critics argue that resources could be better allocated to those in greater need, rather than distributing a basic income universally.<\/li>\n\n\n\n<li><strong>Social and Behavioral Effects: <\/strong>There are concerns about the long-term social and behavioral effects of UBI. Some worry it might undermine traditional values of hard work and self-reliance or impact social cohesion.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Conclusion<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>If cash transfers are to be universal, the budgetary costs will be quite high. So, the universal cash transfer scheme is not feasible without raising additional taxes.\u00a0<\/li>\n\n\n\n<li>One simple answer to these challenges would be to keep focus on accelerating economic growth and making it more inclusive.\u00a0<\/li>\n<\/ul>\n\n\n\n<p><strong>Source: <\/strong><a href=\"https:\/\/www.thehindu.com\/opinion\/op-ed\/is-it-time-for-india-to-introduce-a-universal-basic-income\/article68635738.ece#:~:text=A%20type%20of%20basic%20income,income%20regardless%20of%20employment%20status\" target=\"_blank\" rel=\"noopener\"><strong>TH<\/strong><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Due to the phenomenon of jobless growth, i.e., the rise in output and labour productivity without the commensurate growth in employment generation, several countries have mooted the idea of a universal basic income (UBI).<\/p>\n","protected":false},"author":4,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-29401","post","type-post","status-publish","format-standard","hentry","category-current-affairs"],"acf":[],"jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/29401","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/comments?post=29401"}],"version-history":[{"count":1,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/29401\/revisions"}],"predecessor-version":[{"id":29402,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/29401\/revisions\/29402"}],"wp:attachment":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/media?parent=29401"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/categories?post=29401"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/tags?post=29401"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}