Sikkim will become the first Indian state to introduce Universal Basic Income
Sikkim plans to implement the Universal Basic Income scheme by 2022.
Sikkim's ruling party, the Sikkim Democratic Front (SDF), recently declared to include the Universal Basic Income scheme in its manifesto ahead of the Assembly election in 2019 and aims to implement it by 2022. If everything goes according to the plan, it will be the first state to implement UBI in India.
Sikkim has set up examples in the country in different areas in the past also, some of them being:
- Sikkim is the best state for women in the workplace, thanks to its high rates of female workforce participation, there's less crime against women
- Sikkim's literacy rate increased to 82.2% from 68.8% in 2001, among the country's highest
- Sikkim is the least populated state in India, has its per capita GDP growing in double digits since 2004-05
- Sikkim also decreased its poverty ratio by 22% to 51,000 (8.2%) in 2011-12 from 1.7 lakh (30.9%) in 2004-05
- Sikkim became the first fully organic state, since embracing the mission in 2003 received a fillip from PM Narendra Modi earlier this year
"UBI is a scheme that a number of economists have talked about and it works well in developing countries. It has been tested even in India, debated within the Finance Ministry as early as 2017," Prem Das Rai, SDF MP in the Lok Sabha told the Indian express.
What is Universal Basic Income?
Universal Basic Income (UBI) is a programme for providing all citizens of a country or other geographic area/state with a given sum of money, regardless of their income, resources or employment status.
The main idea behind UBI is to prevent or reduce poverty and increase equality among citizens.
As per Basic Income Earth Network (BIEN), the essential principle behind Universal basic income is the idea that all citizens are entitled to a livable income, irrespective of the circumstances they're born in.
Funding for UBI - Initial plan
The SDF government has already considered the "affordability" of the scheme.
1. The successful implementation of the hydropower projects by the state has made it a surplus power generating state.
"The state produces 2200 MW and it will go up to 3000 MW in the next few years. The state's requirement is only 200-300 MW and the rest goes to power trading firms. When this money comes in, we as SDF feels its people's money and it should be utilized for them."
2. Sikkim also plans to subsume other subsidies and allowances in order to provide a particular amount every month to people.
Other places where UBI/similar programmes were implemented
In 2011-2013, Madhya Pradesh, India started Madhya Pradesh Unconditional Cash Transfers Project where Rs. 300 were provided to every single adult and Rs. 150 to children. It is considered a successful experiment as the living conditions improved drastically.
Similar programs include MINCOME in Canada and Basic Income Grant in Namibia, which also have shown successful results.
The advocates of the UBI praise the concept as futuristic which will allow the people to look into the future without worrying too much about income to survive.
Also read: Sikkim becomes world's first organic state, wins Oscar for best policies by UN
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