The discussion on free fixed sum of money to be transferred universally to everyone has finally found a place in the Survey. Apart from the conflict Mahatma Gandhi himself faced between eradicating poverty on one hand and distribution of free resources to its citizens, the Survey discusses the veracity and morality of the Universal Basic Income (UBI) at length. The Survey also questions the shortcomings of the current welfare systems carried out through various centrally sponsored schemes across sectors and sub-sectors.
Most importantly, the survey raises three important points of concern. Firstly, it questions whether the universal basic income reduces the incentive to work. A recent World Bank study gives a dire prediction that more than 60 per cent of the employment in India will be threatened by automation.
Secondly, the Survey queries the very principle of free money distribution and the ethics behind payment with no associated work done by the individual. The recent study by Accountability Initiative indicates the shortcomings of the Centre in creating the promised jobs under Mahatma Gandhi National Rural Employment Guarantee Scheme (MNREGS). Till January 2016-17, the Centre was able to create only 38 person days of work per rural household - far lower than 100 person days of work promised per rural household under the scheme.
Finally, in the third point, it indicates that people should contribute to society before a corresponding payment can be received. But, the Survey itself contradicts the premise indicating the shortcomings of how value capture is defined in the economy. For instance, value addition done by housewives is not captured by any economic method objectively.
India spends close to 5.2 per cent of its GDP in various forms of subsidies. But, considerable mis-allocation of these resources among the districts is well captured by the Survey. Clearly, this indicates the need for better methods to reach the intended recipients at the bottom of the economic pyramid. With Centre’s increasing push for financial inclusion through its Jan Dhan scheme, a unique identification for all citizens through Aadhaar card and increasing mobile phone reach in rural areas, it is a matter of few years before UBI becomes a reality.