Union Budget 2018: ​India ready for universal basic income, govt should implement it over 2 years, says Former RBI Governor Bimal Jalan

Budget 2018

With only a week left for the Union Budget, former Reserve Bank of India (RBI) governor Bimal Jalan has said that India is ready for Universal Basic Income, an idea that was first proposed in Economic Survey two years ago.

“Basic income, in its essence, has to be above the poverty line. It surely is a good idea. I think the economy is ready for it. It can be implemented over a period of two years. In terms of subsidies, we can begin by reducing subsidies and merging them,” said Jalan.

“In the digital economy now it is possible to merge subsidies and go for income transfer,” added Jalan.

Universal Basic Income is a sum of money guaranteed to citizens and transferred directly to their bank accounts and is being debated globally. The Economic Survey 2016-17 had proposed the concept of Universal Basic Income as an alternative to various social welfare schemes such as subsidies in an effort to reduce poverty.