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Universal Basic Income (UBI) UPSC NOTE

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  Growing Interest in UBI The rise of automation and AI has led to job growth stagnation and youth unemployment , prompting renewed interes...

 Growing Interest in UBI

  • The rise of automation and AI has led to job growth stagnation and youth unemployment, prompting renewed interest in Universal Basic Income (UBI) as a social safety net.

  • Jobless growth has increased inequality, leading to discussions about UBI as a potential solution.

UBI in India

  • Interest in UBI surged in India after the 2016-17 Economic Survey suggested considering direct cash transfers to replace inefficient welfare schemes.

  • The JAM (Jan-Dhan, Aadhaar, Mobile) initiative makes direct benefit transfers more feasible.


Challenges with UBI

  • While UBI may be desirable for addressing unemployment, budget constraints make it challenging to implement on a large scale.

  • Alternatives may include boosting employment growth or investing in public services rather than just direct income support.

Current Indian Schemes

  • Rythu Bandhu Scheme (RBS): Launched in early 2018 in Telangana, this scheme provides farmers with unconditional payments of ₹4,000 per acre to support their income and livelihood.

  • PM-KISAN (Pradhan Mantri Kisan Samman Nidhi Yojana): Introduced in 2018-19, this national scheme initially offered ₹6,000 per year to small landholding farmers. 

  • It was later expanded to include all farmers, excluding income taxpayers and non-farming individuals. 

  • Current programs face inclusion and exclusion errors due to logistical challenges and verification issues.

GS3

Way Forward

  • A feasible approach could be a limited UBI, providing around ₹144 per person monthly, similar to PM-KISAN but expanded to all citizens.

  • Solutions must focus on ensuring access to cash and minimizing technical failures in payment systems.

  • Integrating UBI with existing programs like MGNREGS can better support vulnerable groups, especially during crises like the COVID-19 pandemic.

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Learnerz IAS | Concept oriented UPSC Classes in Malayalam: Universal Basic Income (UBI) UPSC NOTE
Universal Basic Income (UBI) UPSC NOTE
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Learnerz IAS | Concept oriented UPSC Classes in Malayalam
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