Dear Editor,
The idea of a Universal Basic Income (UBI) is more relevant for India than for the advanced economies which have been considering it so far. But it may not be feasible. Governments in India tend to mess up when it comes to distinguishing the poor from the non-poor. As a result, the poor get very little of what is spent in their name. Also, it is argued that many of the subsidies benefit the rich more than they do the poor. The acceptable level of the universal basic income could be an income equivalent of the poverty line. The total cost of providing this income to all Indians would amount to 12.5 per cent of GDP, which would amount to nearly 95 per cent of the Union Government’s total expenditure. Thus, a universal basic income which provides poverty line-equivalent income to all Indians does not appear feasible because of budgetary constraints. A universal basic income handout by itself would not solve the problems that the poor face. In developed countries, a valuable natural resource or a highly advanced productive sector can be leveraged to sustain a universal basic income, which is not possible in India.
Gagan Pratap Singh,
Noida
