{"id":258022,"date":"2023-08-30T20:35:10","date_gmt":"2023-08-30T15:05:10","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=258022"},"modified":"2023-08-30T20:35:10","modified_gmt":"2023-08-30T15:05:10","slug":"jan-dhan-2-0-consider-a-universal-basic-income","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/jan-dhan-2-0-consider-a-universal-basic-income\/","title":{"rendered":"Jan Dhan 2.0: Consider a universal basic income"},"content":{"rendered":"\n

Source<\/strong>– The post is based on the article \u201cToo Few Seats For The Kotas\u201d <\/strong>published in the \u201cmint\u201d <\/strong>on 30th August 2023<\/strong>.<\/p>\n

Syllabus: <\/strong>GS3 – Indian Economy – Inclusive growth. GS2- Government policies and interventions<\/p>\n

Relevance:<\/strong> Issues related to social safety net and financial inclusion<\/p>\n

News<\/strong>– The article explains the successful implementation of Jan Dhan Yojana. It also explains the concept of Universal Basic Income.<\/p>\n

What are some successful accomplishments of Jan Dhan Yojana scheme?<\/strong><\/h2>\n

In less than ten years through the Pradhan Mantri Jan Dhan Yojana<\/a>, the Indian government has successfully established over five hundred million Jan Dhan accounts. <\/strong><\/p>\n

Finance Minister Nirmala Sitharaman recently highlighted that more than 55.5% of these bank accounts belong to women<\/strong>.<\/p>\n

The scheme has facilitated the direct transfer of cash benefits<\/strong> to various recipients. It has also provided a formal credit avenu<\/strong>e, and saved many poor individuals from the clutches of moneylenders.<\/strong><\/p>\n

The scheme empowered the government to swiftly provide aid during times of crisis<\/strong>. In 2020, for instance, the Jan Dhan scheme proved instrumental in responding to the COVID-19.<\/strong><\/p>\n

The monthly relief of \u20b9500<\/strong> for three months, allocated to each of the 200 million Jan Dhan accounts held by women, played a crucial role in alleviating panic.<\/strong><\/p>\n

What are some facts about Universal Basic Income (UBI)?<\/strong><\/h2>\n

Universal Basic Income (UBI) is a very straightforward form of redistribution. It places every individual under the government’s financial support.<\/p>\n

The idea is that in addition to its traditional roles of governance<\/strong>, the state should allocate public funds<\/strong> to provide each adult a fixed amount of money<\/strong> on a monthly basis for personal use. <\/strong><\/p>\n

The typical objection to this concept is that it has potential for moral hazard.<\/strong> The concern is that it might lead to a lack of motivation <\/strong>to work.<\/p>\n

The outcome is influenced by the actual size of these monthly transfers<\/strong>. Modest transfers<\/strong> are unlikely to distort the incentives in the labor market.<\/p>\n

Providing support to those in need could actually support an economy <\/strong>driven by an increasing demand<\/strong> for goods and services.<\/p>\n

The next significant question revolves around the feasibility of the government<\/strong> implementing such a program.<\/p>\n

While the ultimate aim of a UBI is comprehensive coverage<\/strong>, the list of beneficiaries doesn’t necessarily need to be truly “universal<\/strong>.”<\/p>\n

High-income individuals<\/strong> would certainly be excluded. Even if nearly 68 million people who filed income tax returns last year are excluded, there would still be more than a billion Indians<\/strong> to account for.<\/p>\n

A modest monthly UBI of \u20b91,000 per person would result in an annual fiscal expenditure of \u20b912 trillion. <\/strong><\/p>\n

This amount exceeds the budget allocated for infrastructure<\/strong> in the current year by about \u20b92 trillion. It makes it a less attractive proposition<\/strong> at this current juncture.<\/p>\n

Way forward- <\/strong><\/p>\n

If the economy continues to grow at a rate of 6%<\/strong> or more annually, it could potentially alter the financial calculation <\/strong>within a decade or even sooner.<\/p>\n

As poverty decreases<\/strong> and our tax revenue expands<\/strong>, the demand for financial transfers<\/strong> would decrease as well.<\/p>\n

It’s prudent to subject the concept of a Universal Basic Income (UBI) to a comprehensive assessment.<\/strong> Its broader economic effects<\/strong> would require thorough examination<\/strong> in advance.<\/p>\n","protected":false},"excerpt":{"rendered":"

Source– The post is based on the article \u201cToo Few Seats For The Kotas\u201d published in the \u201cmint\u201d on 30th August 2023. Syllabus: GS3 – Indian Economy – Inclusive growth. GS2- Government policies and interventions Relevance: Issues related to social safety net and financial inclusion News– The article explains the successful implementation of Jan Dhan… Continue reading Jan Dhan 2.0: Consider a universal basic income<\/span><\/a><\/p>\n","protected":false},"author":10320,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1230,9],"tags":[216,8184,11125],"class_list":["post-258022","post","type-post","status-publish","format-standard","hentry","category-9-pm-daily-articles","category-public","tag-gs-paper-3","tag-indian-economy","tag-mint","entry"],"jetpack_featured_media_url":"","views":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/258022","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/10320"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=258022"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/258022\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=258022"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=258022"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=258022"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}