A topper · GS3 · 52 pages

Mudit Foujdar: GS3 answer copy

20 answers by Mudit Foujdar, as written in the test. Each question opens a page with how other toppers answered it.

The questions

The answers

Question 1 · 10 marks · 169 words written

The concentration of wealth at the top necessitates addressing scarcity of resources for the masses. In this context, assess the potential of Universal Basic Income (UBI) in furthering the goals of economic equity.

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

  1. Will prevent destitution, indebtedness, extreme poverty, trafficking & bondage.
  2. Will counter leakages & gaps in implementation.
  3. Will address inclusion & exclusion errors.
  4. Will improve nutritional, health & educational outcomes (Madhya Pradesh pilot).
  5. Will ensure Economic Justice (Preamble).
  6. Will improve aggregate demand in the economy.

Arguments Against UBI

  1. May lead to culture of freebies, doles & laziness.
  2. High fiscal costs (India - Tax to GDP only at 17%).
  3. Misuse of funds by beneficiaries (drugs, alcohol).
  4. Leakages due to digital illiteracy.
  5. May lead to inflationary pressures (High labour costs).
  6. 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.