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Why is UBI a bad idea?

The list of freebies given by different political parties keeps expanding keeping in mind the incoming elections. Hence, there won’t be much fiscal space for Universal Basic Income (UBI). You can read about the Universal Basic Income (UBI) – Necessity, Benefits, Guiding Principle in the given link.

A UBI offering even poverty line income will cost the Union Government 10% of the GDP and the entire net revenue of the Government is not even 8% of the GDP.

Further readings:

  1. Difference between Minimum Income Guarantee (MIG) and Universal Basic Income (UBI)
  2. MGNREGA (Mahatma Gandhi National Rural Employment Guarantee Act) – Facts, Objectives, Roles of State Govt, Gram Sabhas, Panchayats

Related Links

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