Let’s talk about a supplemental income: 

Let’s talk about a supplemental income: 

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.