Answer:

Universal Basic Income is a radical and compelling paradigm shift to ensure social justice along with a productive economy. It is premised on the idea that a just society needs to guarantee to each individual a minimum income which provides the necessary material foundation for a life with access to basic goods and a life of dignity.

Potent tool to reduce leakages and reduce inequality

♤ Direct transfer: UBI reduces out of system leakage because transfers are directed

straight to the beneficiaries’ bank accounts.

♤ Reduced opportunities: The scope for diversion is reduced considerably, since discretionary powers of authorities are eliminated almost wholly.

♤ Increased accountability: Furthermore, UBI’s expanded coverage will likely impact

out of system leakage since the state is answerable to a larger section of its citizens.

♤ Better monitoring: Finally, given the fewer avenues for leakages, monitoring a UBI would be easier than many other schemes.

UBI has immense potential to reduce inequality by way of direct and indirect effects.

♤ Direct effects include: redistribution of wealth, creating flexibility in labour market, enhancing productivity, positively affecting education.

♤ Indirect longer-term effects include: increased entrepreneurship and large multiplier effects, increased number choices for education and enhanced participation in democracy. All these will lead to even greater reduction in inequality than might be immediately apparent.