Universal Basic Income (UBI), as a form of social security will help in reducing inequality and eliminating poverty. Thus it ensures security and dignity for all individuals.
As human labour is being substituted by technology, there will be reduced wage income and reduced purchasing power. UBI will compensate for reduced purchasing power.
Sources say that Modi government likely to bring Universal Basic Income Scheme before next year’s general election.
There would be drastic changes in the way government spends its revenue generated from taxation and other sources.
Currently, Government spends its revenue on various services as well as on subsidies.
UBI would mean that government may move away from service delivery and empower its citizens to access services through cash transfer.
Under UBI, only those with zero income will receive the full benefits in net terms.
For those, who earn additional income over the basic income, the net benefits will taper off through taxation.
So even though the basic income is universal, only the poor will receive the full benefits.
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