Hyderabad: With political parties increasingly engaging in a war of populist schemes, the demand for implementing the Universal Basic Income (UBI) scheme, which envisages direct cash transfer to beneficiaries in place of existing welfare schemes, came back into focus.
This will plug leakages, check irregularities and save 30 per cent operational costs in setting up official machinery and mechanism to deliver schemes. Each household is now entitled to Rs 1.03 lakh subsidy per year, which will increase to Rs 1.25 lakh, if the Congress comes to power in 2019.
Economists have been pitching for UBI to check leakages in the delivery of welfare schemes, like the public distribution system and social security
pensions, and transfer cash directly to the beneficiaries’ bank accounts every month.
They say that if money, equal to the subsidy amount being spent on each beneficiary, is directly remitted to their bank accounts, it will give them the freedom to spend the amount as per their needs. Since the seeding of Aadhaar data of beneficiaries with their bank accounts and welfare schemes has almost been completed in Telangana state, they feel that the time is ripe to implement Universal Basic Income.
“The implementation of welfare schemes involves 30 per cent of operational costs. This expenditure can be saved through direct cash transfer. Besides, leakages and irregularities in the implementation, the delivery process can be curbed. Universal Basic Income will be the best option to ensure only genuine beneficiaries get the benefit and thus save public money,” said Mr G. Narasimha Murthy, an economist.
