Interim Budget 2019:Modi may counter Rahul with universal basic income

Carnegie India reckons supporters' claim that no-strings-attached payments will be an effective antidote to India's underperforming anti-poverty programmes and leaky, distortionary subsidies.Critics worry that they will undermine an already-fragile social security architecture, cause workers to drop out of the labour force and encourage wasteful spending.

The pre-budget Economic Survey of 2016-17 provides the most exhaustive treatment thus far of implementing an Indian UBI.It finds that India's largest welfare schemes are poorly targeted; in comparison, it argues that a UBI distributed directly into bank accounts will limit pilferage, be easier to administer, and prove a more effective anti-poverty intervention.

The 2016-17 Economic Survey deserved praise for bringing substantial rigour to the debate, thrustingUBI into the national spotlight and prudently concluding that the time has not yet come for implementation.

However, should future Indian policymakers wish to implement a UBI, the survey's central design features offer a weak foundation.If enacted upon without deeper analysis, debate, or sufficient evidence demonstrating improvement in development outcomes, the Economic Survey's blueprint for an Indian UBI will produce underwhelming results.