The sense in business circles, that demand is weak and growth is slowing down, was…
Some Basic Issues Underlying Basic Income S. Subramanian
As India gears up for another general election, the politics of poverty eradication has again gained centre-stage; and there has been a great deal of talk, in recent times, about introducing some sort of basic income support scheme as a welfare measure in India. Any such seriously conceived and carefully thought-through scheme would be a welcome policy initiative, and in this context, it is useful to remind ourselves of the many complexities that must be expected to inform a policy of income support through cash transfers. In this essay, S. Subramanian, Economist, author of The Poverty Line, and Rights, Deprivation, and Disparity, discusses certain fundamental issues underlying a basic income scheme that are not often immediately apparent to the non-specialist evaluator. The essay, cast in a question-answer format, addresses various strands of this complex economic issue. The themes explored include the question of what a basic income support scheme is; a couple of alternative forms it could assume—those of a Universal Basic Income and a Basic Income Guarantee; why it might be deemed to be necessary in India at this juncture; and what are some of the information and logistical problems that are typically associated with it and how these problems might be mitigated. Sounding a note of caution against hastily conceived announcements on a politically attractive rhetoric such as income redistribution, Subramanian also puts forth—for public thought and informed discussion—possible scenarios for the feasibility of funding a reasonable universal basic income programme in India.
