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Universal Basic Income (UBI) can overcome the various issues that affect the government sponsored schemes in general but one issue would still need to be addressed. What is that one issue among the following?
Misallocation to districts with less poor
Out of system leakage
Exclusion errors
Last mile delivery
Misallocation to districts with less poor: The UBI, by design, should effectively tackle issues related to misallocation. UBI will simply amount to a transfer of resources from above and need not be “accessed” by beneficiaries The simplicity of the process cannot be overstated: beneficiaries are simply required to withdraw money from their accounts as and when they please, without having to jump through bureaucratic hoops Out of system leakage: Conceptually, a UBI reduces out of system leakage because transfers are directed straight to the beneficiaries’ bank accounts. The scope for diversion is reduced considerably, since discretionary powers of authorities are eliminated almost wholly Exclusion error: Given the link between misallocation and exclusion errors, a UBI that improves allocation of resources should mechanically bring down exclusion error. urthermore, by virtue of being universal, exclusion errors under the UBI should be lower than existing targeted schemes Last mile concerns remain, however. Beneficiaries still need to access their bank accounts, either at local bank or post office branches or through BCs.
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