According to the Economic Survey 2016 – 17, Universal Basic Income (UBI) aims at achieving Mahatma…

Question

According to the Economic Survey 2016 – 17, Universal Basic Income (UBI) aims at achieving Mahatma Gandhi's objective of "wiping every tear from every eye". In this backdrop, explain the concept of UBI and discuss how it is expected to achieve the stated objective.

Ghissu Editorial · Accepted Answer

Universal Basic Income is an unconditional cash transfer to all citizens that guarantees a minimum income floor, aiming to wipe every tear by cutting poverty, exclusion and indignity while respecting individual agency. The Economic Survey 2016-17 proposed INR 7,620 a year for 75% of the population, financed by rationalising subsidies.

**Introduction**

Universal Basic Income (UBI), emphasized in the Economic Survey⟦1⟧ 2016-17, aims to fulfill Mahatma Gandhi’s vision of "wiping every tear from every eye" by providing economic security and dignity through unconditional cash transfers.

**Understanding UBI**

SKETCH: spectrum | UBI Implementation Challenges  
left: Full Universality  
right: Targeted Transfers  
- Fiscal Constraints  
- Political Feasibility  
- Administrative Capacity

2. **Economic Survey’s Proposal**: A modest UBI of INR 7,620 annually for 75% of Indians, achievable by rationalizing subsidies and welfare schemes to improve efficiency and reduce leakages.

3. **Digital Infrastructure**: ==Andhra Pradesh’s== adoption of DBT, Jan Dhan⟦4⟧⟦3⟧⟦2⟧ accounts, and Aadhaar-enabled payments demonstrates readiness for UBI implementation via JAM infrastructure.

4. **Implementation Challenges**: Fiscal constraints and political feasibility create tension between universality and targeted transfers, as shown in the UBI implementation spectrum.

**Alignment with Gandhi’s Objective**

1. **Poverty Alleviation and Dignity**: UBI guarantees material security, addressing Gandhi’s vision of eradicating suffering and restoring dignity.

3. **Social Justice**: UBI reduces exclusion errors in targeted schemes, promoting inclusivity aligned with Gandhian values.

4. **Empirical Evidence and Concerns**: SEWA Bharat’s Madhya Pradesh pilot shows UBI recipients increased productive activities, countering fears of idleness.

5. **Fiscal Sustainability**: UBI must replace inefficient subsidies to be sustainable, requiring political will and administrative capacity, as seen in ==Andhra Pradesh==.

**Way Forward**

1. **Phased Pilots**: Target vulnerable groups in ==Andhra Pradesh== to build evidence and capacity.

2. **Scheme Integration**: Rationalize welfare programs to create fiscal space without abrupt withdrawal of food security or employment guarantees.

3. **Digital Expansion**: Strengthen JAM infrastructure and digital literacy in rural and tribal areas.

4. **Community Engagement**: Promote participatory governance for transparency and trust, reflecting Gandhian grassroots empowerment.

**Conclusion**

UBI, supported by digital infrastructure and welfare rationalization, offers a promising route to realize Gandhi’s timeless goal of wiping every tear from every eye.

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