21.16        ndian    onom
     proposal of the ‘Economic Survey 2016-17’, the         availability of resources, it should look sizeable to
     advice is to recycle the funds of the existing central show an impact on the beneficiaries. As a proposal,
     sector and centrally sponsored schemes run by the      the NITI Aayog CEO has proposed a sum of Rs
     GoI. But such schemes cannot be shut down to           1,000 on monthly basis while the survey proposed
     start UBI. This could be done in phased way only.      (more as an example) a sum of Rs 7,620 monthly.
     Till then the GoI needs to mobilise additional         Normally, it is believed that without transferring
     funds for it through budgetary or non-budgetary        a sizeable amount of money (which may bring in
     sources. Given the projection that once the            comfort to the beneficiaries), the scheme may not
     proposed GST is implemented from July 2017,            remain effective. Though, to begin with even a
     the shortfall in the tax collections is estimated to   lower sum of transfer also looks good.
     remain around Rs 66,000 crore (due to curtailment            Financial inclusion, inclusion and exclusion,
     of many cesses and surcharges), budgetary support      regulation and assessment, etc. are the other
     does not look a very viable option.                    involved issues related to it. The scheme looks
          Though certain other positive measures are also   under examination and study of the GoI in
     in the pipeline, such as increased tax compliance      present time. Once it is announced only then
     due to emphasis on less-cash, the proposed ceiling     these concerns will settle down.
     on cash transactions, linking Aadhar to PAN for
     filing income tax returns and linking Aadhar to        the benefits
     transactions, etc., the implementation of the GST      The welfare schemes India has been implementing
     is supposed to increase tax collections (though in     have been faced with certain common problems,
     medium term) together with checking the evasion        misallocations of funds, wastage and seepage,
     of direct and indirect taxes.                          inclusion and exclusion factors, ghost beneficiaries,
     Selecting the beneficiaries: Clues from the name       corruption, the cost of operating them, etc. being
     suggest it to be applying on all. But as per the       the major ones. For this and other reasons, it has
     Survey as well as the GoI expressions, the scheme      been argued to give serious consideration to the
     is proposed to be launched partially. In this case,    idea of the UBI. This will have several merits in it
     the target population may be taken from the            missing the current redistribution schemes, such
     lower strata of the below poverty line. The NITI       as:
     Aayog CEO has proposed it for the bottom 20                  (i) It will be given from above minimising
     per cent of the BPL population at the time of its                several maladies of existing schemes.
     launch. This could be linked to the general policy          (ii) It is less likely to be prone to exclusion
     framework of social justice also. This will not only             errors.
     keep the financial requirements on lower side but          (iii) By directly transferring money to bank
     also give some time to the government to recycle                 accounts, and bypassing multiple layers of
     the funds from several welfare schemes it either                 bureaucracy, the scope for ‘out of system’
     runs or sponsors. A suggestion came from the                     leakages (in case of the PDS running up
     GoI in favour of transferring the cash into the                  to 45 per cent) will be quite lower.
     accounts of women head of the family (which will
     promote the ideas of inclusive growth and women        conclusion
     empowerment also).                                     There       are     considerable     challenges    of
     The amount of transfer: How much money                 implementation, which will have to be debated
     should be transferred though is guided by the          and addressed properly before going for the UBI.