Hidden costs of in-kind subsidies

Hidden costs of in-kind subsidies

soumyadip sinha Amidst elections, there is talk of implementing models of the Universal Basic Income (UBI). Budget 2019 introduced `6,000 per year assured income support for small and marginal farmers. While the Economic Survey in 2016-17 had discussed UBI as a new paradigm for the country, social insurance in India has mostly taken the form of in-kind subsidies—for example the Public Distribution System, subsidised medical care, LPG subsidies, fertilizer subsidies, etc.

However, the current policy discussion by some political players, seem focused on providing an UBI in addition to the existing in-kind subsidies without any rationalisation. This is likely to […]

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