Elections 2019: Know all about Universal Basic Income

Amit Basole, Senior Professor at Azim Premji University spoke to ETV Bharat on the topic of Universal Basic Income.

Bengaluru: Elections are round the corner and political parties are putting up manifestos and voter is yet to decide whom to vote. In recent days Universal Basic Income is in the debate. So let us understand what UBI is and its impacts.

ETV Bharat spoke to Amit Basole, Senior Professor at Azim Premji University in Bengaluru on the topic.

What is Universal Basic Income?

Idea of Universal basic Income comes from developed countries or industrialized countries. Government guarantees a basic amount which is entitled to citizens of the country given on yearly or monthly basis.

Is India ready to adopt this scheme?

One needs to understand why is this scheme popular and where this scheme has been adopted? Economic growth is not accompanied by required number of jobs and employment creation.

To solve this issue UBI comes into picture, Government says we are not able to ensure everybody gets job in lieu of this we will ensure everyone gets a basic income.

India is not ready for Universal Basic Income because it will be expensive, And also in India's context some have left sizable population aside. According to Arvind Subramanian recent proposal “Kwaza Universal Basic Income” it covers 75% of rural population and it will be affordable for Government as well.

How is UBI Calculated?

There is no particular method, each country can adopt different methods. UBI is understood to be a minimum amount, according to Arvind Subramanian's proposal it is Rs 18,000 per year and as per National Farmer Direct Cash Transfer Scheme is Rs. 6000 per year and Rythu Bandhu scheme is also an idea of UBI but the amount is small.

Different Countries adopting UBI

It has been proposed in many countries, and still it is in talks and debates. Switzerland has gone through referendum and public voting and the scheme was rejected. It is an idea which is not popular but which is coming from the ruling powers.

Pros and cons of UBI

Pros

1. It is easy to adopt policy
2. It is one direct transfer to beneficiary without middlemen

Cons

1. If people do not have bank accounts or other infrastructure like ATM's or banks it will be difficult for people who reside in remote areas
2. It is dangerous because there is no exchange of work and people get money for free

Is UBI a political agenda?

It is a popular policy for the political parties, as it is appealing. Money for free. And this can be used as appeasement tool because of the target population in motive to turn as vote bank.

Alternate for UBI

There may be room for basic income but this will not be enough or this cant be a solution for unemployment. And Government must emphasis on the job creation and schemes like MGNREGA.