As Farmer welfare till now is the important promise in every Electoral Menifesto and could be seen or heard during every election campaign , every candidate introduce his own versions of Farmer welfare scheme for example - MSP , Farm loan Waiver etc .
As all these mention above are Price support schemes and no one focusse on Farmers income resulting ineffectiveness of all the schemes mentioned above and no change in Farmers condition.
Most devastating disadvantage of Price support scheme is that it basically focuses on some crops only neglecting others and it breaks the credit culture .
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| Universal Basic Income and India |
Recent Initiatives
Recently TRS(Telangana Rashtriya Samity ) came with its Income Support Scheme called Rythu Bandhu Scheme where a farmer would get a specific amount of money (₹4500) before sowing as to fulfill all its need .
As such type of Income support is needed not only for Farmers but also to all Indian Citizen because as their are many areas which are more productive then Farming and it does not discriminate accuracy of targetting.
Universal Basic Income and India
In Western Countries this concept toss because of Increasing Automation but in India this got currency because of chronic poverty and Government faliure.
If we think of providing a Universal Basic Income to all not more then what is our poverty line i.e. ₹1180 per month it would cost India approximately 19 trillion (11.4% of GDP or 50% more then center's total tax revenue).
But who is asking for ₹1180 per month a research survey by UNICEF and SEWA(Self Employed Womens Association) conducted in rural Madhya Pradesh produce that only ₹300 per month for each adult and ₹150 per month to each child can make a big difference in their living standards.
The Sikkin Government decided to make Sikkm India's first state to follow Universal Basic Income and decided to implement it before 2022.
Definition of Universal Basic Income
Universal Basic Incomeis an un-conditional income that is sufficient to meet a person's basic needs at or above poverty line .
Universal Basic Income is periodic cash payment delivered to all on an Individual basis, without means test or work requirements.
Features of Universal Basic Income
- Unconditional- Universal Basic Income is Unconditional (except age) i.e. any one can awail it only with the vertue of Citizenship.
- Automatic- It would be paid automatically to the recipient bank account after a stipulated time period.
- Not Variable - as whatever the income be this basic income would not vary
- Individual - It would be paid on Individual basis.
- Right - All legal citizen of the country have the right to avail this.
History of Universal Basic Income
It's History Goes back to early 16th century in Sir Thomas More book Utopia where he argued about that every person should receive a guaranteed regular income.
Benefit of Universal Basic Income
- Automation - Helps to fulfill the aspirations of automation because after this their would be no hinderence of job security and India could efficiently implement automisatuon technology.
- Transparency - This would maintain transparency because as all the money goes directly to the bank account so no middle men which reduce corruption and major problem in india as India ranks 79 in Corruption Perceptions Index.
- Administrative In-efficiency- Universal Basic Income would help to reduce Administrative In- efficiency because very less administration is required.
- Poverty Reduction - Universal Basic Income would help in reducing poverty because every one would have a guaranteed income and 5% people living in India in extreme poverty according to World Poverty Clock would be better off.
- Freedom - Universal Basic Income would provide Freedom to do whatever one might to , and reduce India's ranking from 130 in Human Development Index.
- Gender Equality - As their would be no discrimination on the basis on gender so reduce discrimination.
- Economic Growth - As Universal Basic Income would increase the purchasing power of individuals resulting in more spending hence Economic Growth.
- Insurance - Universal Basic Income acts as insurance in bad days
- Equitable distribution of Wealth - this would helps equitable distribution of wealth because for this government would increase tax and provide that extra tax money to the needy with the help of Universal Basic Income and helps India to increase its ranking from 12 most unequal country in the world because hare 1% population have 58% of wealth.
- Increase Bargaining power- This would increase Bargaining power of workers because of which they can weight for better wage job.
Disadvantage of Universal Basic Income
- Employment - As this would act as a guarantee for money because of which beneficiary becomes lazy and are not interested in doing work.
- Fiscal Burden - Universal Basic Income would act as a major burden on government excequer.
- Inflation - If Universal Basic Income scheme is funded with the help of Increasing tax it would result to inflation
- Wrong Behaviour - Beneficiary could use this extra money for liquor of other bad habits.
- Worker availability- this would reduce worker availability because no worker would be ready to work for less income marking a reduction in their availability.
- Privatisation - This would increase privatisation because Nobel laureate Amartya Sen said that in market driven economy the more money people get they will start investing it on private education and private healthcare
Conclusion
As no program could directly target Universally so we should start from narrow they expand it wider , as this one scheme only could not make India developed but it could act as a step towards developed Economy.
