Let’s talk about a supplemental income: |ForumIAS

Context:

There has been a lot of discussion on universal basic income (UBI) in both developed and developing countries

Explanation:

The primary objective of UBI is to enable every citizen to have a certain minimum income.
The term ‘universal’ is meant to connote that the minimum or basic income will be provided to everyone irrespective of whatever their current income is.

Issues:

The adoption of a universal basic income can impose a burden on the fisc which is well beyond the capabilities of most developing countries, including India.
It is necessary to first decide whether income supplements should be ‘universal’ or limited to certain easily identifiable groups.
Most calculations involving the provision of income to one and all are beyond the capabilities of the present Central government Budget unless the basic income is fixed at too low a level.
It is extremely difficult to cut so-called implied subsidies or hidden subsidies in order to fund resources.

Unresolved Concerns:

There is a philosophical question, whether support to vulnerable sections should be in the form of goods and services or as cash.
Cash gives the discretion to beneficiaries to spend it any way they like. But it is assumed they would be wise in their discretion.
On the other hand, the provision of services or goods directly to beneficiaries may be directed to achieve certain objectives in terms of nutrition or health or education.
In the provision of services, the concern is about leakages and quality of service.
As far as India is concerned, there are a whole lot of services provided by the state, and it would be impossible to knock them off and substitute them with general income support.