Modi’s Budget to Have Sensational Offering?

Reports in National Media are suggesting that Prime Minister Narendra Modi who sprang a surprise on the nation with Demonetization, may spring another surprise in the upcoming budget. This time it is with Universal Basic Income (UBI). It is basically a fixed sum given to every citizen regardless of their financial status, employment status etc.

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To be more clear, the government will stop all the welfare schemes given to the people but will transfer a fixed amount monthly or yearly. This is to avoid the rampant leakage, diversion, and corruption. There are speculations that the government may offer 1000 per month to all the citizens or 10000 per year as UBI.

However, in a country with more than 130 Crore population, it will cost a bomb to execute such massive scheme but then financial experts say it can pull off by scrapping PDS and NREGA as well as increasing the personal income tax collections.

There are arguments that giving money as lump sum may push the a big section of the poor to squander the money especially on alcohol and there are some people that this UBI will act as a disincentive to work and make people lazy. But then everything is only speculation until Finance Minister Arun Jaitley reads out in the budget on February 1st.