UBI scheme should have a cut off income, says Kaushik Basu

The Universal Basic Income (UBI) scheme should have a cut off income and people should be encouraged to give it up voluntarily, former World Bank Chief Economist Kaushik Basu has said.

"The Universal Basic Income scheme should give a cut off income & ask ones above it to voluntarily forego it. That'll also be a civics lesson," Basu, who is currently Professor of Economics at Cornell University, said in a tweet.

The Economic Survey for 2016-17 made a strong pitch for implementing Universal Basic Income (UBI), that stipulates a certain income for the poor, as an alternative to various social welfare schemes in a bid to reduce poverty.

"UBI is a powerful idea whose time, even if not ripe for implementation, is ripe for serious discussion," the Economic Survey had said.

The Survey had estimated that a UBI that reduces poverty to 0.5 percent would cost 4-5 percent of GDP, assuming that those in the top 25 percent income bracket are not part of the loop.