Basic Income Could Empower Millions Of Indians, But India May Find Cost Too High
ByShreya Shah|24 Jun, 2017 https://www.indiaspend.com/basic-income-could-empower-millions-of-indians-but-india-may-find-cost-too-high-75113/
In a country where 21% of the population lives below the poverty line (of Rs 816 per capita per month in rural areas, and Rs 1,000 in urban areas), where the top 10% of the population own 53% of its wealth, with worsening inequality over the last two decades, a basic income could empower millions, even as the government said the programme might not be politically or economically feasible.
If 75% of the population received Rs 6,450 per capita per year, the UBI would cost India 4.2% of its gross domestic product--more than the 2016-2017 central government revised estimate for the department of food and public distribution, defense services, expenditure on departments of agriculture, farmers' welfare, fertilizers, telecommunications, road transport and highways, and atomic energy put together.
The UBI amount would be greater than all current welfare programs of the government including the Public Distribution System, the Sarva Shiksha Abhiyaan, the Integrated Child Development Scheme, the Mid Day Meal scheme, the Pradhan Mantri Gram Sadak Yojana, the Pradhan Mantri Awas Yojana, and the Swachh Bharat Mission, according to the 2016-2017 economic survey.
A basic income would be different from a payment for work done under the National Rural Employment Guarantee Scheme (NREGS) because it does not have a work requirement, or from a payment made to mothers choosing to deliver in a hospital as the UBI isn’t for a specific category of people. It is also different from a payment made to only those below the poverty line because the income is meant for everyone, irrespective of the level of income.
UBI as an alternative to current programmes: could correct faulty targeting, reduce leakage
The 2016-2017 economic survey highlights the misallocation of funds in current programmes: it concludes there is little overlap between the share of poor in a district and the share of overall funding it receives from current welfare programs, suggesting the poorest districts do not receive the most money.