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Universal Basic Income (UBI) – All Questions about new Salary Scheme answered

A bold Agenda - Derisking India through "Universal Basic Income (UBI)"

universal basic income

A bold Agenda – Derisking India through “Universal Basic Income (UBI)

As per the reports, “Universal Basic Income (UBI)” is said to be another scheme that is expected to launch before the Lok Sabha election due May 2019. It was envisaged in the year 2017, that “Universal Basic Income (UBI)”  can be “a conceptually appealing idea” if implemented at the grassroots level of the country intended to reduce poverty. Sikkim has declared that it will implement the scheme in its true spirit in every household by the year 2022 process and will introduce the unconditional direct cash transfer stepwise. Till date, large sample studies have been carried out successfully in states of Madhya Pradesh, Gujarat, and few tribal belts. But Sikkim will be the first state to carry the “affordability” of the “Universal Basic Income (UBI)” scheme in every household of the state.

Universal Basic Income: Under this scheme, PM Modi is offering a bumper gift for Below Poverty Line (BPL) Indians after Quota for poor. It is expected that Modi government might play a masterstroke by launching “Universal Basic Income (UBI)” scheme as part of its welfare push before #LokSabhaElections2019. Launch means guaranteed monthly or periodical payment of Rs 2,000-2,500 pm to every BPL household       under direct benefit transfer scheme i.e. straight to bank account. It is next in line to the initiative of Ayushman Bharat scheme. Though the implementation is tricky as there is a divided opinion with proponents saying Universal Basic Income (UBI) would provide a vital safety net for all citizens and remove inefficient benefit systems currently in place while skeptics are worried about fiscal space and incentives.

As of now let us delve into some interesting facts about one of the most ambitious “Universal Basic Income (UBI)” scheme of the year 2018. Some basic questions or interesting facts about the “Universal Basic Income” scheme

Q1. What is the Universal Basic Income (UBI) scheme?

Ans: As per the sources, it is being said that the government is working towards a UBI scheme in which every person will be given a basic salary of Rs.2,000 – Rs.2,500 per month.

Q2. When will people start receiving money under this UBI scheme?

Ans: It is expected that on 27th December 2018, UBI scheme presentation will be presented before the Prime Minister Narendra Modi. If everything goes well and he finds it beneficial or for the welfare of the society then confirmation for the UBI scheme is expected to be declared by 15th January 2019.

Q3. After hearing about UBI scheme, each one of us may be curious to whether I will receive money or not? What amount will I receive?

Ans: Currently, it is expected that a large part of the population will be covered under the UBI scheme. It is being said that 10 crore people will be paid a lump sum amount of Rs.2,000- Rs.2,500 per month under this UBI scheme. The amount will be transferred directly to the individual’s bank account linked with his/her Aadhaar Card. It will be quite similar to the way a subsidy is received. Although, it is also being said that if the scheme is launched then subsidies concept will diminish and no more subsidy will be granted after the launch of the UBI scheme.

Universal-Basic-Income-Scheme

Q4. Who all will be benefited under the UBI scheme?

Ans: The people under the poverty line are expected to be a part of those 10 crore people. In 2011 census and poverty survey was done in a way that these 10 crore people have already been recognized. It is being said that a person earning less than Rs.1,407 in cities and person earning less than Rs.972 is considered to be below the poverty line and can be a part of these 10 crore people who will get the UBI scheme benefit. In other words, a person earning less than Rs.47 per day in cities or Rs.32 in villages will be on the receiving end of the UBI scheme.

Q5. What was the need for the UBI scheme or purpose of the UBI scheme?

Ans: In 2016-2017 government received an idea of UBI scheme. During the elections, BJP promised many things to the citizens of India. Since few promises were not fulfilled so people are asking the government to fulfill all their promises. Some people are asking for their Rs.15,00,000 and some are asking for granting exceptions for non-payment of their loans. So, one of the major motives of UBI scheme is to give benefit and better living to people living below the poverty line.

Q5. What about the farmers under UBI scheme?

Ans: It is being said that there is another scheme to transfer or deposit money in the farmer’s bank account. The government has also prepared a report on Telangana’s and Jharkhand’s government for granting exceptions on non-payment of loans.  Instead of granting exceptions on non-payment of loans, Telangana Government grants ₹4,000 to the farmers before the cultivation of each crop and provide them free electricity. Jharkhand government has also launched similar schemes. Considering their reports, Government is expected to bring up some new project or scheme for benefit of the farmers.

Q6. Why is Government distributing money to 10 crore people?

Ans: Another major reason for the launch of the UBI scheme is to put an end all the schemes or subsidies. As per the reports, the government is spending 4-5% of GDP on subsidies. If UBI scheme is launched then all the subsidies will be removed and spending will reduce by 1%. This means subsidies spending is approx 4-5% of GDP whereas amount that is expected to be paid to 10 crore people will be 3-4% of the GDP.

As per the source, it is being said that initial investment in UBI scheme may be compensated by putting the surcharge on mining and other big projects. Currently, all of this is not yet officially declared. We can not judge or evaluate the UBI scheme unless an official statement with all the terms is released by the Modi Government.

Let us wait for some more days, while Modi Government is busy evaluating this rumored scheme.

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