"Universal Basic Income (UBI) is a viable solution to eradicate extreme poverty in India." Critically discuss the statement.

Universal Basic Income refers to providing fixed amount to every citizen irrespective of status, eligibility. Solution to eradicate Extreme Poverty: (1) Bridge deficit in public health/education → Use private sector. (2) Inline with Rawlsian principle of distribution justice → least advantage benefit. (3) Promote competitiveness better through choice & non-monopolization public sector. (4) Reduce income inequality → top 1% hold 40% wealth. (5) Reduce effect of automation caused poverty.

Challenges of UBI in eradicating extreme poverty: (1) Fiscal burden → fiscal deficit above 40%. (2) Lack of 100% financial inclusion and literacy. (3) Tax Moral hazard → creates dependency on govt doles. Reduced govt spend on infrastructure & capital building. (4) May not address issue of core EG → 80% only 20% hospital in rural area. Targeted UBI → PUKSHAM Use of Boundary → C-Rupj Way forward → for universal financial inclusion.

— NEERAJ · AIR 180