Background/Objectives: Universal Basic Income (UBI) is a form of social security paid to individuals, not households, and it is paid to every citizen of the country. As per analysis 98% of the world people concentrate only 2 % of the Global wealth, it is to eliminate poverty and bridge the gulf between the haves and have not’s. A Universal Basic Income is, like many rights, unconditional and universal: it entails that every citizen should have a right to a basic income to meet their needs by virtue of being citizens.
Methods: The study is centered on the concept of descriptive type. The concept of Universal Basic Income is not new. Of late, it is gaining currency among the Governments throughout the world in the light of growing disparities between the rich and the poor and it’s an endeavor on the part of the Governments to provide the poor safety nets. It is paid at regular intervals to the needy, may be monthly, to take out a decent living. Finland and Scotland pioneered UBI. But, Finland abandoned the programme because of lack of funds.
Findings: Universal Basic Income gained prominence in India with “Garibo Hatao” slogan given by former Prime Minister Indira Gandhi. Like in other countries, itis aimed at providing every Indian living Below Poverty Line (BPL) with a minimum income. A fixed amount would be transferred to the account of the beneficiary in the country. There are some conceptual arguments against providing Universal Basic Income. Primary being, it induces laziness and reduces the incentive to work among the people. Should income be detached from employment? Itis a concern out of reciprocity. The Economic survey 2016-17 had estimated UBI’s cost at 4.9% of GDP. This is against 5.2 % GDP spent on all 950 central sector and centrally sub-sponsored schemes.
Application: All the political parties support this type of schemes to reduce the income inequalities between the rich and the poor. Infact, it is a mesmerizing scheme to lure common people to garner votes. For effective implementation of UBI, the objectives and beneficiaries need to be defined and identified lest it may become another scheme for squandering public money.