Jaitley Extols Virtues Of Universal Basic Income, Says At Least One State Is Willing To Go For It

Extolling virtues of the Universal Basic Income, Finance Minister Arun Jaitley on Friday said that at least one state is willing to take a plunge and launch a pilot on the scheme, proposed by the Economic Survey.

“UBI is an idea worth considering. Today I had the first finance minister of a state meeting me to say that my state is willing to take a plunge as a pilot project pooling all the state and central subsidies. We will identify the poor people of the state, give cheque to a family every month” said Jaitley while addressing captains of the industry at the ASSOCHAM annual event. This way he said, poverty can be eliminated over night in a region where it is implemented.

Referring to the theme of the event ‘India Transforming through Redical Reforms’ the Finance Minister said that the biggest reform that India need today is that people must pay tax. In this context he mentioned the combined effect of the Goods and Services Tax and demonetisation would take India to a new path of reforms, enabling large part of informal economy in to the formal economy.

The integration of the informal economy in to formal one would lead to higher tax revenue and thereby lower tax rates. “We create a new normal and break away from the old normal of how much cash and how much cheque for every transaction.

Today you are moving towards a system where generating that cash will be difficult and spending that cash will be difficult. Probably the incentive to be on the right side of law is going to be much higher,” he added.

With inputs from ANI.