Question 1 · 10 marks · 169 words written
Opening · a figure
OxFam India Report 2021 remarked that top 10% Indians owned 77% of the entire wealth owned by Indians. In this context of rising inequalities, UBI is proposed as a remedy.
Body · points
Arguments in Favour of UBI
- Will prevent destitution, indebtedness, extreme poverty, trafficking & bondage.
- Will counter leakages & gaps in implementation.
- Will address inclusion & exclusion errors.
- Will improve nutritional, health & educational outcomes (Madhya Pradesh pilot).
- Will ensure Economic Justice (Preamble).
- Will improve aggregate demand in the economy.
Arguments Against UBI
- May lead to culture of freebies, doles & laziness.
- High fiscal costs (India - Tax to GDP only at 17%).
- Misuse of funds by beneficiaries (drugs, alcohol).
- Leakages due to digital illiteracy.
- May lead to inflationary pressures (High labour costs).
- Politically infeasible to discontinue other welfare schemes to make fiscal space.
Close · a framework
The 3 pillars of Effectiveness, Economy & Equity need to be balanced in the implementation of UBI to ensure India's commitment to SDG 1.