Paper: GS – II, Subject: Governance, Topic: Government Policies, Issue: Universal Basic Income.
Context:
India’s rising inequality, job insecurity, and social challenges demand urgent welfare reform. Universal Basic Income (UBI) offers a practical way to provide income security, simplify welfare delivery, and build a more inclusive and resilient social protection system.
Key Highlights:
What is Universal Basic Income (UBI)?
- It is a social and economic policy where a government provides all citizens with a regular, unconditional sum of money, regardless of their income, employment status, or other factors.
- The primary goal is to ensure a basic level of financial security for everyone and to reduce poverty and income inequality.
Addressing Income Inequality and Social Fragility:
- India’s wealth gap is extreme: the top 1% owns 40% of wealth, and the top 10% nearly 77%, compared with historic highs.
- GDP growth has not translated into broad-based prosperity, as reflected in India’s low ranking on the World Happiness Report.
- UBI offers a simple cash transfer to all citizens, reducing poverty and providing a basic income floor regardless of employment status.
Simplifying and Streamlining Welfare Delivery:
- Current welfare schemes in India suffer from inefficiency, exclusion, duplication, and complex eligibility filters.
- Digital infrastructure like Aadhaar and Direct Benefit Transfer (DBT) platforms can facilitate direct, unconditional cash transfers to Jan Dhan accounts.
- UBI bypasses administrative hurdles and stigma associated with targeted subsidies, making welfare accessible to all.
Supporting Vulnerable and Informal Workers:
- India’s gig and informal workforces face income volatility and lack social safety nets.
- UBI can stabilize income, allowing workers to meet basic needs during low-earning periods.
- Pilot programs and international trials have shown UBI improves nutrition, education, earnings, and mental health, without reducing work incentives.
Addressing Concerns and Implementation:
By providing unconditional, simple, and universal income support, UBI can reduce inequality, stabilize livelihoods amid economic upheaval, and renew democratic citizenship. It is time to place UBI at the heart of India’s welfare architecture to address growing insecurities and build a more just and resilient society.
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