Universal basic income scheme premature for India, says frmr CEA

The government could be considering implementing the universal basic income (UBI) system for the citizens, sources have told CNBC-TV18. The social security scheme ensures that all citizens of the country get a fixed regular sum of money. An economic survey for the same is expected to make a pitch for this scheme. Sources say that the proposal will include basic income for people living below the poverty line. Nitin Desai, former Chief Economic Advisor told CNBC-TV18 that idea of UBI is premature in India as there is huge demand for public goods. The political capacity to remove all subsidies is also doubtful. However, Desai is hopeful that the UBI proposal could persuade the government to adopt a rational approach to subsidies. Long-term methods are needed to promote economic growth in the country. Watch video for more..