PSC CSE Mains Syllabus: GS-2- Welfare schemes for vulnerable sections of the population by the Centre and States and the performance of these schemes; mechanisms, laws, institutions and Bodies constituted for the protection and betterment of these vulnerable sections.

A universal basic income is a government guarantee that each citizen receives a minimum income without any preconditions. It is also called a citizen’s income, guaranteed minimum income, or basic income. The intention behind the payment is to provide enough to cover the basic cost of living and provide financial security.

In 1967, Martin Luther King Jr. said a guaranteed income would abolish poverty.That means reducing income inequality as well.

Economist Milton Friedman proposed a negative income tax. The poor would receive a tax credit if their income fell below a minimum level. It would be equivalent to the tax payment for the families earning above the minimum level.

In India, the idea of a national UBI emerged with the 2016-17 Economic Survey. The survey laid out the blueprint for a ‘quasi’ UBI, proposing 7,620 per year to 75% of the population. In 2019 prices, this would cost the Indian government around 4.5% of GDP.

Should subsidies end:  

Road ahead:

The time has arrived to seriously consider abolishing the poverty and bring inclusive growth.

Source:”Economic Times “.

Possible UPSC CSE Mains Question:

Is this the opportune moment to roll out a Universal Basic Income to alleviate poverty in the nation? Discuss.