Basic income

 

A basic income scheme can be an apt alternative to the populist measure of farm loan waivers to alleviate rural deprivation. The successful implementation across developing and developed economies has proven the suitability of basic income for countries having different per capita incomes. It not only has the potential to raise standards of living but is also an exercise in social cohesion on account of its egalitarian nature. Sikkim has taken the lead in planning a basic income scheme. Other States should follow suit in introducing their own versions of this ‘conceptually appealing’ scheme as an affirmative step towards equality, dignity and economic security (Editorial page, “Basic income works and works well”, January 14)

Sarbani Mohapatra,

Kolkata

The results of the pilot projects of the basic income scheme in India and other parts of the world have one thing in common — a qualitative improvement in the lives of beneficiaries. The greatest advantage of a basic income is that it is unconditional. The cash pay out is regular, reaches the bank accounts of individual beneficiaries and empowers individual dignity and autonomy in utilising the money. A basic income scheme appears to be an effective antidote to the prevailing farm and job crises. Unlike loan waivers, it does not lead to unintended consequences such as a drying up of bank credit or hazards such as periodic demands for write-offs. It is a redistributive tool with minimal disruptive impact on the economy as the expansion of the tax base will fund it without the need to impose new or higher taxes.

V.N. Mukundarajan,

Thiruvananthapuram