UNIVERSAL BASIC INCOME - EDEN IAS CURRENT AFFAIRS FOR UPSC Sikkim Democratic Front (SDF) had included Universal Basic Income (UBI) in its manifesto for the assembly and Lok Sabha elections, according to a report by The Indian Express. The state had already begun the process of introducing the unconditional direct cash transfer scheme and planning to implement the same by 2022. It could have become the first state in India to implement UBI. The 2017 Economic Survey had advocated implementation of UBI as an alternative to the various social welfare schemes in an effort to reduce poverty. The Survey said, “UBI is a powerful idea whose time even if not ripe for implementation, is ripe for serious discussion.” However, Late Finance Minister Arun Jaitley in June 2017 said the scheme as proposed in the Economic Survey will not be feasible in today’s India. UBI is premised on the idea that a just society needs to guarantee to each individual a minimum income which they can count on, and which provides the necessary material foundation for a life with access to basic goods and a life of dignity. What Is Universal Basic Income? A basic income is a regular, periodic cash payment delivered unconditionally to all citizens on an individual basis, without the requirement of work or willingness to work. UBI has three components: universality (all citizens included), unconditionality (no prior condition), and agency (by providing support in the form of cash transfers to respect, not dictate, recipients’ choices). Universal Basic Income (UBI) is a programme for providing all citizens of a country or other geographic area/state with a given sum of money, regardless of their income, resources or employment status. The main idea behind UBI is to prevent or reduce poverty and increase equality among citizens. The essential principle behind Universal basic income is the idea that all citizens are entitled to a livable income, irrespective of the circumstances they’re born in. The idea of a universal basic income has gained currency in the West because of the threat of automation-induced job losses. In India, the idea first gained currency as a solution to chronic poverty and government’s failure to effectively target subsidies towards the poor The broad features of such schemes are: Payments at periodic regular intervals (not one-off grants), Payments in cash (not food vouchers or service coupons), Payments to individuals, Universality Rationale behind UBI The average Indian family’s monthly income in 1938 was Rs 25. Today, the average Indian family’s monthly income is roughly Rs 50, 000, a 2, 000 times increase since 1938. The poorest 10% of Indian families earn a mere Rs 5, 000 a month. 25 million Indian families earn just a tenth of what the average Indian family earns. And, 50 million households earn just a fifth of the average Indian family. While the Indian economy continues to grow, the much touted trickle down impact of economic development seems elusive to the poorer sections of our society. There is a real risk of the bottom quarter of Indian families being left behind completely. The plan to ensure a basic minimum standard of living for every Indian family that was envisaged by Nehru and Bose in 1938 is applicable even today. FOR FULL ARTICLE CLICK ON THE LINK https://www.edenias.com/universal-basic-income-current-affairs-by-eden-ias/