The survey juxtaposes the benefits and costs of the UBI scheme. The survey said the UBI, based on the principles of universality, unconditionality and agency, is a conceptually appealing idea but with a number of implementation challenges lying ahead especially the risk that it would become an add-on to, rather than a replacement of, current anti-poverty and social programmes, which would make it fiscally unaffordable.
Subramanian, who has prepared the survey, had earlier said that UBI that guarantees a minimum income to every citizen is an “exciting idea” and he will further elaborate his thoughts on the topic in the Economic Survey.
There has been speculation about the finance minister announcing a UBI-like scheme in some form in his budget, after the Jammu and Kashmir (J&K) government became the first state government to commit to UBI for all citizens living below the poverty line.
In his budget speech earlier this month, J&K finance minister Haseeb Drabu said he would want to create a social security fund and provide a UBI to all those living below the poverty line through a direct benefit transfer system.
However, Drabu put the onus on the Central government for initiating the process to implement UBI in the state.
The survey highlights difficulties in privatizing public enterprises, even for firms where economists have made strong arguments that they belong in the private sector. In this context, the survey pointed towards the need to further privatize the civil aviation, banking and fertilizer sectors.
The survey listed some of the challenges that might impede India’s progress such as ambivalence about property rights and the private sector, deficiencies in state capacity, especially in delivering essential services and inefficient redistribution.
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