UNIVERSAL BASIC INCOME PPT

3. What is Universal Basic Income?
 Universal basic income (UBI) is a
government program in which every
adult citizen receives a set amount
of money on a regular basis.
 The intention behind the
payment is to provide enough to
cover the basic cost of living and
provide financial security.
 Universal basic income (UBI), also
called basic income, citizen's
income, citizen's basic
income, basic income
guarantee, guaranteed annual
income.

4. UBI has five
components
• Universality- It is universal
in nature.
• Periodic- Payments at
periodic regular intervals (not
one-off grants)
• Payments to individuals
• Payments in cash (not food
vouchers or service coupons).
• Unconditionality- There are
no preconditions attached
with the cash transferred to
the beneficiary.

5. UBI in India
 The Economic Survey of India 2016-17 has advocated the concept
of Universal Basic Income (UBI) as an alternative to the various
social welfare schemes in an effort to reduce poverty.
 Idea behind the Universal Basic Income is that every person should
have a right to a basic income to cover his needs, just by virtue
of being a citizen.
 The purpose of the UBI is to prevent or reduce poverty and
increase equality among citizens.

6. Benefits of UBI :
UBI will provide
secured income
to individuals.
The scheme will
reduce poverty
and income
inequality in
society.
It will increase
the purchasing
power of every
poor which will
further increase
aggregate
demand.
Easy to
implement
because no
identification of
the beneficiary is
involved.
It will reduce the
wastage of
government
money because
its
implementation
is very simple.

7. Arguments in favour of UBI:
1. PROMOTES EQUALITY-With the safety net provided by a
UBI, many people would choose to work less. This would increase job
opportunities for those currently excluded from the labour market. It
would also recognize the economic contribution of unpaid labour,
the majority of which is undertaken by women. Women would also
benefit from a better distribution of jobs as well as the greater time a
UBI would allow for family. This may lead to a more equal division of
care within households. It would reduce inequality in general,
eliminating extreme financial poverty.

8. 2. FUTURE-PROOFING THE ECONOMY-Automation
threatens to put all jobs at risk. A basic income would ensure that
ordinary people are insulated from the worst effects of this. In fact
this could be a positive – allowing people to retrain or set up their
own businesses. A UBI would also support the economy during this
transition, ensuring that people can still afford to buy things.
3. BETTER WORKING CONDITIONS- With a minimum
guaranteed income, people will be free to challenge unfair
working practices such as zero hour contracts. The workplace
would therefore be forced to reform with better conditions,
including more meaningful work and better pay. This would
strengthen the position of ordinary people in relation to
corporations.

9. 4. MORE TIME FOR YOURSELF- People could reduce
their working hours without sacrificing their income.
They will therefore be able to spend more time on other
pursuits they find more meaningful such as a hobby,
greater family time or setting up a business. Fostering a
greater entrepreneurial and creative spirit among citizens
will improve society and the economy. This will also lead
to a reduction in stress and improve general mental
health.

10. 5. Poverty and vulnerability reduction-
Poverty and vulnerability will be reduced in one fell swoop.

11. 6. Psychological benefits-
A guaranteed income will reduce the pressures of
finding a basic living on a daily basis.

12. Despite challenges in implementing UBI many consider a
universal basic income (UBI) programme to be a solution that
could mitigate the looming crisis caused by dwindling job
opportunities. Thus, it can be said that if universal basic
income ever had a time, it is now.