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.
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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