UNIVERSAL BASIC INCOME (UBI)

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UNIVERSAL BASIC INCOME (UBI)
UBI— Government to pay every citizen a fixed amount of money on regular basis and without any conditionality. It is Similar to direct subsidies but it is more universal and unconditional cash transfer.

Benefits:
  • Better targeting
  • Freedom of choice
  • Insurance against Health risks and for Education requirements
Criticisms:
  • May promote conspicuous consumption
  • Disincentives doing work
  • Lack of financial inclusion
  • Lack of robust unique identification
  • Higher Fiscal burden
  • Doesn’t guarantee Capacity Building
  • Doesn’t address the structural problems
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