Universal basic income in India after corona virus attack banglate
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.universal basic income holds greater appeal as it does not discriminate based on occupation or land ownership, and does not depend on accuracy of targeting to work. But the challenge with universal basic income is the prohibitive costs associated with it. Providing all individuals with a poverty line-equivalent universal basic income ( ₹ 1,180 per month for each individual, in 2017-18 prices) would cost around ₹ 19 trillion or 11.4% of gross domestic product (GDP). This would be 50% more than centre’s total tax revenues, and would certainly not be sustainable.However, even much lower levels of universal basic income might suffice in improving the lives of the poor. For instance, a 2011 study by United Nations International Children’s Emergency Fund (UNICEF) and the Self Employed Women’s Association (Sewa) in rural Madhya Pradesh showed that providing ₹ 300 per month to each adult and ₹ 150 to each child can make a big difference to the lives of the poor. In 2017-18 prices, it amounts to around ₹ 18,000 per year for a family of five: two adults and three children.A similar amount, ₹ 16,000 per year to a household of five, has been suggested by the renowned development economist Pranab Bardhan.The various schemes of the central government, which can potentially make way for a universal basic incomes together amount to around 3% of GDP, MGNREGS (0.33% of GDP), fertilizer subsidy (0.4% of GDP), petroleum subsidy (0.15%), and miscellaneous subsidies and revenue foregone due to tax exemptions. Given that the withdrawal of state support across so many sectors could be highly disruptive.‘universal’ pension of ₹ 1,000 per month to the easily identifiable groups of elderly, widowed, and disabled . Additionally, the government should ensure maternity entitlements of ₹ 6,000 per child. Such a scheme would cost a relatively manageable 1.3% of GDP.
