The idea of UBI does not seem to be a good policy option at this moment given the ‘political limitations’, he said.
To deal with bad loans, the Finance Ministry is scheduled to debate on two innovative suggestions made by the latest Economic Survey -- Universal Basic Income (UBI) and creation of bad bank, said Finance Minister Arun Jaitley.
However, the idea of UBI does not seem to be a good policy option at this moment given the ‘political limitations’, he said, suggesting policy makers should be well acquainted with the facts before talking any decision.
“I have always expressed...fear that once he moots ideas like the UBI, 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 let’s have the UBI, something that the Budget will not be able to afford,” he said.
The Economic Survey 2017 strongly recommended creation of a bad bank in which all NPAs of the banks are vested so that the rest of the banking system could carry its own activities.