What is Universal basic Income and why it is in news?

The Universal Basic Income is simply a basic income. It is a program in which country's citizens or permanent residents receive a regular sum of money from a government source. UBI can be implemented nationally, regionally or locally.

In UBI a basic sum of money is provided to individuals regardless of their income, resources or employment status with a purpose to reduce poverty and increase equality among citizens.

The essential principle behind basic income is the idea that all citizens of the country are entitled to a livable income, whether or not they contribute to production and despite the particular circumstances into which they are born.

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After the surprising defeat in the recent five state assembly elections, there are speculations that the Narendra Modi led government may hold a discussion on the implementation of UBI scheme, something which may turn out to be a game changer for the prime minister in upcoming general elections.

Meanwhile, experts are also seeing UBI as a more efficient medium of help to a large number of people, especially farmers than one-time universal loan waiver.