January 30, 2019

Guaranteed basic income is not a solution to mass poverty

In this Mint article, Research Director and Senior Fellow, Niranjan Rajadhyaksha writes on the recent proposals for a guaranteed basic income. Excerpts: 

 

"It is interesting that the recent proposal by four economists—Josh Felman, Boban Paul, M.R. Sharan and Arvind Subramanian—has turned this distribution on its head. They have recommended an income support scheme in which the bottom eight deciles in rural India (or the bottom four deciles in the country as a whole) will need income support. They implicitly seem to have less confidence in the ability of economic growth to lift living standards compared to the 1962 report.

 

The merit of their scheme is that it is more progressive than a farm loan waiver or the Rythu Bandhu scheme in Telangana, which benefit landowners rather than tenants or farm workers. Felman and his co-authors also argue that the fiscal cost will be manageable, since the income transfers will be funded by money released from the scrapping of schemes such as the Fasal Bima Yojana and the fertilizer subsidy..."

 

Read the whole article here.

Topic : Transitions / In : OP-EDS
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