Terming the concept of universal basic income (UBI) as a tool that could help alleviate poverty, Finance Minister Arun Jaitley today said it could be used to better target people deserving of state aid.In an interview with CNBC Awaaz, Jaitley, however, said he was apprehensive whether a consensus on the radical idea will be arrived at between states and centre if it was taken up for consideration."Universal Basic Income is a great tool to help alleviate poverty. Any income earned by the poor for their labour would complement the minimum income offered by the government," Jaitley told Network18 in an exclusive interview.
The annual Economic Survey, authored by Chief Economic Advisor Arvind Subramanian, featured a chapter on universal basic income (UBI), a form of social security that would put a fixed sum of money into the pockets of every unemployed and poor Indian.
With the global economy slowing down in the aftermath of global financial crisis nearly a decade ago, and with concerns about advancements in automation and artificial intelligence taking away jobs, some economists and scientists have suggested UBI as a solution that could be looked at in a future where jobs are to come by. This has pulled the idea from a position that was once considered extreme left to one that is increasingly being looked at as a viable one. In fact, there have been pilots in Holland and Canada, while the Scottish government is considering one of its own. Finland recently announced a basic income scheme for anyone seeking employment. The UK government offers a jobseeker's allowance for the unemployed. Last year, the Swiss electorate overwhelmingly voted against implementing a basic income plan.
"Globally, there is a view that a minimum income be rolled out every month for the 30-35 percent poor citizens in lieu of untargeted subsidies that Centre and states offer to citizens," Jaitley said. Under various schemes at central and state level, citizens avail subsidies, but the entitlement of such subsidies is not meant for the rich, upper-middle, or middle classes — the poor are entitled to such subsidies, Jaitley said, indicating that the UBI could then be used as a better-targetted toolHe, however, made it clear the government was as of now not looking at implementing it as a pilot project, he added. He also did not go into the financials of what a full rollout would cost the exchequer.
Budget 2017
In the interview, the FM also touched upon the various announcements he had made in the Union Budget, and said it offered a number of tax benefits to citizens so as to help widen the tax net."The changes in tax structure have been proposed to reward honest taxpayers and provide relief to Indian middle class, while taking a tough stance against tax evaders," he said.
The government has initiated a slew of measures, such as one-page income tax return forms, to bring increasing number of citizens under the tax net, he said.
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