Report Wire

Tag: Universal Basic Income

  • ‘EAC-PM report independent task, may not be taken higher up in govt’

    The report launched by the Economic Advisory Council to the Prime Minister (EAC-PM) on the state of inequality of India caught senior authorities officers in Niti Bhavan unexpectedly, plenty of whom have been unaware that the advisory physique had commissioned such a report or that the findings had been launched Wednesday. The report advisable that the federal government launch a assured employment programme for the city unemployed and roll out a common primary revenue (UBI) scheme to scale back revenue gaps, amongst different issues.

    While the report, titled ‘The State of Inequality in India’ was launched by EAC-PM’s Chairperson Bibek Debroy on Wednesday, sources stated senior officers who work carefully with the federal government’s coverage advisory physique had not obtained a replica till late after its launch. “I learnt that there was a report like this through a media article,” stated an official who works carefully with the EAC-PM, on situation of anonymity. Niti Bhavan in central Delhi homes the EAC-PM. Officials who work carefully with the EAC-PM additionally distanced themselves and the advisory physique from the report and its contents, which was ready by the Gurgaon-based Institute for Competitiveness (IFC). “This is not the EAC-PM’s report, but just submitted to them. EAC-PM does not necessarily endorse the recommendations made in the report,” stated an official. The report will not be formally offered to the higher ranks of the Central authorities, it’s learnt.

    While sources near the EAC-PM, together with these concerned within the formulation of the report, reiterated that the report was an “independent” job with no involvement or agenda setting by the EAC-PM, senior authorities officers questioned why the report carried the official emblem of the EAC-PM on its cowl and that its launch by Debroy was communicated by a Press Information Bureau (PIB) launch, which is usually used for official government-related updates. “We were surprised that the report had EAC-PM’s logo and that its release was done through PIB,” stated a senior authorities official.

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    Queries despatched to Debroy remained unanswered till publication. Queries despatched to the Finance Ministry on the problem didn’t elicit a response.

    IFC offers advisory providers to corporates and governments, and is the Indian chapter of the worldwide community of the Institute for Strategy and Competitiveness at Harvard Business School. It has beforehand labored carefully with the Niti Aayog in making ready the federal government assume tank’s latest export preparedness index, the second version of which was launched in March 2022, and India innovation index, which was final launched in 2021. These indices have been launched by Niti Aayog chief Amitabh Kant and the assume tank endorsed them. IFC is headed by Amit Kapoor, who, as per his web site, sits on the board of competitiveness initiatives in Mexico, the Netherlands, Italy and France.

    The timing of the report and a few of its suggestions are additionally essential — as an illustration, one in every of its key suggestions requires introducing UBI. This shouldn’t be a novel concept, and an identical coverage was, actually, a key a part of the Indian National Congress’ marketing campaign within the run as much as the 2019 Lok Sabha elections. In its manifesto, the get together had promised Rs 72,000 per 12 months to the poorest 20 per cent of India’s households, which the then Congress president Rahul Gandhi had known as a “final assault” on poverty. Even earlier than that, the thought was endorsed by former Chief Economic Advisor Arvind Subramanian within the Economic Survey for FY17 instead of subsidy switch, which the then Finance Minister Arun Jaitley had stated may not be politically possible in India regardless of being supportive of it.

    While launching the report on Wednesday, Debroy additionally stated it was tough to gauge revenue inequality in India, owing to the dearth of complete knowledge, including “what we do have and what we should have is data on distribution of consumption expenditure”. “Unfortunately, it’s the case that the last comprehensive NSS data on consumption and expenditure is for 2011-12. And we have had nothing after that,” Debroy had stated.

    Incidentally, in 2019, the Ministry of Statistics and Programme Implementation had determined to not launch the outcomes of the all-India Household Consumer Expenditure Survey (CES) performed by the National Statistical Office (NSO) throughout 2017-2018, citing “data quality issues”, for which it was severely criticised. A media report on the time launched leaked findings from the 2017-18 which confirmed that inflation-adjusted common month-to-month per capita expenditure (MPCE) declined by 3.7 per cent in India between 2011-12 and 2017-18, which was a primary in 4 many years. The decline was led by an 8.8 per cent decline in rural MPCE.

  • PM panel flags city job assure scheme, common fundamental earnings

    Citing the “skewed nature” of earnings distribution within the nation, the report additionally really useful steps to lift minimal earnings and extra authorities spending on the social sector to make weak sections proof against sudden shocks” and “stop their descent into poverty”.

    The report, titled “The State of Inequality in India” and ready by the Gurgaon-based Institute for Competitiveness, was launched on Wednesday by EAC chairman Bibek Debroy.

    “Looking at the difference between the labour force participation rate in rural and urban areas, it is our understanding that the urban equivalent of schemes like MGNREGS that are demand-based and offer guaranteed employment should be introduced so that the surplus-labour is rehabilitated,” it stated.

    According to the report, elevating minimal earnings and introducing common fundamental earnings are a number of the suggestions that may cut back earnings hole and guarantee equal distribution of earnings within the labour market.

    “Most importantly, the Government must allocate more percentage of the expenditure towards social services and the social sector to make the most vulnerable population resilient to sudden shocks and stop their descent into poverty,” it stated.

    The EAC-PM famous that a very powerful side of measuring poverty in a multi-dimensional context requires mapping the mobility out and in of poverty.

    Citing the outcomes of the three rounds of the Periodic Labour Force Survey (PLFS), the Council famous that within the three years to 2019-20, “excepting for very marginal changes”, the highest 1 per cent of inhabitants held 6-7 per cent of the overall earnings earned, whereas the highest 10 per cent held a 3rd.

    Over the three years to 2019-20, the share of the highest 1 per cent of the inhabitants within the nation’s complete earnings elevated from 6.14 per cent to six.82 per cent.

    It stated that although there was marginal decline within the earnings share of the highest 10 per cent from 35.18 per cent in 2017-18 to 32.52 per cent in 2019-20, this hasn’t resulted in elevated salaries of the bottom-most inhabitants. “…The top 1 per cent grew by almost 15 per cent between 2017-18 to 2019-20, whereas the bottom 10 per cent registered a close to 1 per cent fall (in their income share),” it stated.

    Speaking on the launch of the report, Debroy stated that “in India, we have never had comprehensive data and we will never have data measuring income inequality”.

    “The closest was NCAER data many years ago but one was very sceptical of that despite it being NCAER. What we do have and what we should have is data on distribution of consumption expenditure. Unfortunately, it’s the case that the last comprehensive NSS data on consumption and expenditure is for 2011-12. And we have had nothing after that. In all probability another consumption expenditure round will start this year. But we will not have processed data till the end of the year,” Debroy stated.

    “In the absence of data on consumption expenditure, a clear articulation of the poverty line, obviously we do not know what poverty numbers are, everyone jumps into the bandwagon. All kinds of people do some kind of extrapolation on the basis of 2011-12 data, on the basis of some assumed Tendulkar poverty line and come up with all kinds of estimates… The only data which can be used now is PLFS which is what this report mostly uses,” he stated.

    The name for a UBI scheme might revive the talk on methods to handle rising earnings inequality. The thought was endorsed by former chief financial advisor Arvind Subramanian within the Economic Survey for FY17 instead of subsidy switch. The survey had assumed a quasi-universality fee of 75 per cent (of all beneficiaries). Subramanian had calculated the financial price of the UBI at 4.9 per cent of GDP.

    However, later that yr, then Union finance minister, the late Arun Jaitley, stated that whereas he was supportive of the concept, it may not be politically possible in India. “We will be landing in a situation where people will stand up in Parliament and demand continuation of the present subsidies and over and above that (UBI)…,” Jaitley had stated.

    Subsequently, the International Monetary Fund in October 2017 endorsed the concept of India launching a fiscally-neutral UBI scheme by eliminating meals and gas subsidies. In January 2019, then Congress president Rahul Gandhi had pledged to roll out UBI if his celebration was voted to energy.

    The newest report known as for mountain climbing minimal earnings and making certain higher distribution of earnings within the labour market.

    “Looking at the difference between the labour force participation rate in rural and urban areas, it is our understanding that the urban equivalent of schemes like MGNREGS that are demand-based and offer guaranteed employment should be introduced so that the surplus-labour is rehabilitated,” it stated.