IMF: Universal basic income ‘looks good’
Citing an Indian case study, the International Monetary Fund (IMF) has said that universal basic income “looks good” when it substitutes inequitable and inefficient public spending. With several countries discussing the option of universal basic income (UBI) for their unemployed population, the IMF carried out a simulation exercise of various subsidy schemes with UBI. A UBI is equal cash transfer to all individuals in a country. “And what we show in that example which is very telling is that given our estimate of the impact of the 2011 programme, UBI would actually benefit the poor more for the same budgetary cost,” said Vitor Gaspar, director of fiscal affairs, IMF.