A Study Of The Fiscal Cost Of Universal Basic Income In India

The concept of Universal basic income (UBI) has made tremendous appearance in recent economic literature. It is considered worldwide the antidote to the long known problems of deprivation. In view of increasing vulnerability of being poor and deepening inequalities, the idea of Universal basic income seems promising. From famous economists like Thomas Piketty to famous entrepreneurs like Elon Musk the idea has a large, influential and visible support base. It is now well understood that the benefits of development and high GDP growth rate have not trickle-down to the poorest among the poor. UBI has the potential of bringing in efficiencies in poorly- run government welfare programs. In this context this paper attempts to study the fiscal cost of a UBI function in the Indian economy.