Question Q.16GS2GS2
"Universal Basic Income (UBI) is a viable solution to eradicate extreme poverty in India." Critically discuss the statement.
Main Body
As per World Bank, extreme poverty in India is ~37% or per $3 PPP poverty line (2022).
Universal Basic Income means cash transfer to all the citizens of a nation regularly. This is similar to PM Kisan - transfer of £5000 annually.
UBIViable solution to eradicate poverty.
1Simple Administration: as compared to the multiply of schemes and initiatives.
2Free from the issues of Inclusion and Exclusion error. [E] As per Shuma Kumar committee - 40%.
3Graduation: extreme poverty is based on an income-based poverty line. UBI above that line will ensure eradication of extreme poverty itself.
4Financially Viable: as per CEA, UBI requires around 8% of GDP, which is the present outlay of social sector scheme.
5Boost consumption: cash transfer to all will increase expendable income → increase in consumption → economic growth → viable.
UBIUnviable solution.
1Not politically feasible: to stop other social sector schemes.
2Extreme Poverty is an income-line method: Amartya Sen's poverty is based on capabilities and multiple rights.
3Cannot eradicate multi-dimensional poverty.
4Requires large cash outlay at once → fiscal deficit increase & crowding out of private investment → slow growth.
5Disincentives hard work and capital accumulation.
6Increases inflation in e-economy due to sudden influx of high purchasing power.
Thus, rather than UBI, govt can:
1Give DBT transfer to Antyodaya.
2Promote Social sector building → expenditure in Health, education and skill.
3Transfer of goods in kind → food subsidies. 'Poverty anywhere is threat to Prosperity everywhere'.
258 words17 paragraphs
Conclusion
'Poverty anywhere is threat to Prosperity everywhere'.
7 words
Answer continues on next page
Examiner score
1.4/10Open original scan
Page 38
Topper
GAURAV CHOPRA
AIR 832025
Subject & Paper
GS2GS2
Topic
Issues relating to Poverty and Hunger
Poverty and Malnutrition
Universal Basic Income
Writing Stats
265
Total words
17
Paragraphs
analytical
Tone