by Andre Coelho | Jul 4, 2017 | News
Arun Jaitley. Credit to: The Indian Express
India’s Finance Minister, Arun Jaitley, has commented on the nation’s most recent Economic Survey, tabled in Parliament on 31st January, 2017. He himself presented it, just before the day on which the Indian budget was presented, and its contents were discussed previously.
Universal basic income (UBI) has been gaining attention in India in the past few months, and the first Indian National Conference dedicated to UBI was held in March of this year. In his recent remarks, however, Jaitley expressed concern that UBI may not yet be feasible, due to “political limitations”. It’s unclear at the moment what might be causing this “political limitation”, although other leading Indian economists, such as Amartya Sen, have also expressed doubts about the implementation of UBI in India. In spite of this cautious declaration, Jaitley has also said, “I’m fully supportive of his idea (UBI) but realizing limitations of Indian politics”.
While some economists such as Sen and Jean Dreze have been skeptical about UBI as a possible social policy option for India, others such as Pranab Bardhan, Sudipto Mundle and Vijay Joshi have recently prescribed UBI for the country.
The Economic Survey, a document prepared by Chief Economic Advisor Arvind Subramanian and his team, holds that UBI is a powerful idea, although not ready for implementation. It also states that UBI can be “an alternative to a plethora of state subsidies for poverty alleviation”, and that it “would cost between 4% and 5% of GDP”. It also discusses some options to phase in a UBI in India. These key points about UBI in Economic Survey can be read in this short summary.
More information at:
Kate McFarland, “India: Government Economic Survey presents case for basic income”, Basic Income News, February 4th 2017
Austin Douillard, “India: First National Conference on Universal Basic Income”, Basic Income News, May 2nd 2017
Kate McFarland, “Amartya Sen: India not ready for a basic income”, Basic Income News, March 6th 2017
PTI, “Finance Ministry discussing bad bank, basic income proposals: Arun Jaitley”, The Indian Express, June 11th 2017
by Julen Bollain | Feb 13, 2017 | News
Image obtained at https://www.sinpermiso.info
“Every revolutionary idea seems to evoke three stages of reaction.
First: It’s completely impossible. Second: It’s possible, but it’s not worth doing.
Third: I said it was a good idea all along!”
Arthur C. Clarke (1917 – 2008)
Like any serious social programme, basic income must pass two tests represented by the questions (in the following order): is it fair and is it technically feasible? This article written by Arcarons, J., Raventós, D. and Torrens, L., builds on their previous work here, and addresses these two questions.
First it rebutes many other articles and authors who have criticised the Unconditional Basic Income previously. Secondly, it responds to one of the most common criticisms of basic income, which is that it would be impossible to finance, or that it would mean a “big tax hike”. The authors show financial figures and demonstrate that a basic income can be financed in Spain and, of course, that it would not entail a “big tax hike”.
For the detailed proposal, see the following source: Daniel Raventós , Jordi Arcarons , Lluís Torrens: La renta básica incondicional y cómo se puede financiar. Comentarios a los amigos y enemigos de la propuesta [Unconditional basic income and how it can be financed. Comments to friends and enemies of the proposal]. December 1, 2016, www.redrentabasica.org
by Kate McFarland | Nov 22, 2016 | News
Former MEP Christian Engström has written a “concrete proposal” for a basic income guarantee in Sweden. Originally published online only in Swedish, Engström’s paper is now available in English.
Christian Engström, a former Member of the European Parliament 2009-2014 for the Swedish Pirate Party, has prepared a detailed proposal for an unconditional guaranteed income of 900 EUR (8333 SEK) per month, tax-free, for every Swedish resident between the ages of 19 and 65.
The basic income would replace Sweden’s current social assistance programs, student aid, and unemployment benefits, but no other government-funded programs. Disability and sickness benefits, child benefits, and the state pension would remain in place.
Engström’s basic income guarantee is designed as a negative income tax rather than as a universal grant, with the amount of the grant tapering off as the recipient earns income. Specifically, Engström proposes a 33% income tax with a reduction of the basic income grant by the same amount. (For example, someone who makes 300 EUR would pay 100 EUR in income taxes, and see their basic income lowered by 100 EUR, but would still net 100 EUR.)
Engström proposes no increase in income taxes, and points out that 33% is Sweden’s current normal marginal tax rate for low- and middle-income earners.
The basic income grant would be financed in part through money saved on the social assistance programs to be replaced. The rest of the funds, according to Engström’s proposal, would come from eliminating certain industry-specific discounts on value-added tax (VAT), such as those enjoyed in the food and restaurant industry.
In presenting his specific plan, Engström is motivated by concerns about political feasibility. He states that, ultimately, he would prefer a higher level for the guaranteed minimum income–and that his “concrete” proposal might be seen as an initial step toward bigger and more refined variants of the basic income:
“I hope that in time we will see a basic income of maybe 1,100€ or more in Sweden. But it is not strictly necessary to start at such a high level. It is enough that the basic income is livable, and not lower than today’s social assistance benefits. Then we can introduce the new system, which is the big and complicated step. Once we have done that, and can see in practice how it works and what it costs, we can continue improving the basic income through the ordinary political process.”
To date, basic income has received little mainstream political support in Sweden — unlike neighboring Finland, where an experiment on the effects of an unconditional basic income will begin next year.
Read the details of Engström’s proposal in the full report, available here:
Christian Engström “Basic Income: A concrete and financed proposal for basic income in Sweden“.
Video of Engström presenting his proposal at Finland’s International Basic Income Seminar in Turku, August 2016.
Reviewed by Genevieve Shanahan
Stockholm photo CC BY-NC-ND 2.0 Stina Stockholm
by Jenna van Draanen | Sep 24, 2016 | News
The Canadian House of Commons Finance Committee recently solicited submissions in their pre-budget consultations to give the public the opportunity to provide input in the development of the 2017 federal budget.
The Basic Income Canada Network (BICN) made a submission to the Finance Committee in August that urged the committee to consider creating a basic income that would be, “universally available to Canadians in times of need.” The four-page submission covers what a basic income is, what kind of basic income BICN is advocating for, and why basic income is so urgently needed in Canada.
Three specific recommendations that BICN provides in its submission are:
1) Take immediate steps in the direction of a basic income for working-age adults using federal refundable tax credits and other means compatible with the model of benefits for seniors and children;
2) Undertake a thorough review and exploration of ways, in the context of fair and effective taxation as well as poverty reduction strategies, to fully realize a basic income for everyone;
3) Cooperate with and support basic income initiatives of other orders of government, including by fostering public dialogue, consultation, analysis and policy development as this is in the interest of all Canadians.
To read more about this submission see:
Roderick Benns, “Basic Income Canada Network urges support of basic income in House submission.” Leaders and Legacies. August 9, 2016.
For the original document submitted to the House of Commons Finance Committee, see:
Sheila Regehr, “Submission to the House of Commons Finance Committee”, www.basicincomecanada.org, August 3, 2016
by Toru Yamamori | Feb 3, 2016 | News
BBC broadcasted on a Basic Income in its radio program ‘Money Box’ on 13th January 2016. It can be heard online (last accessed on 26th January 2016).
