New Delhi, January 29: Former Chief Economic Advisor Arvind Subramanian has suggested the Union government not to meddle up with the Reserve Bank of India’s assets and instead launch the basic income scheme to tackle the ongoing farm crisis. The remark by the economist comes just days before the BJP-led Union government is going to present the Interim Budget on February 1.

Speaking about the ongoing farm crisis in the research article, Subramanian suggested that the government should not extract money from RBI reserves, but should work on the replacement of existing farm and fertiliser subsidies. In an article – jointly written with three co-authors Josh Felman, Boban Paul and M R Sharan – he pointed, “The transfer would not be to all rural households but all except the demonstrably well-off. This would make it not universal but quasi-universal.” Health Budget 2019–20 Predictions: Expert Opinions on What Could This Year’s Budget May Have in Store for You.

According to the visiting lecturer at Harvard University, the scheme – quasi universal basic rural scheme (QUBRI) – should be implemented by the government in such a way that it covers all, except the well-off people in the rural areas.

The opinion of the economist comes into the public forum a day after Congress president Rahul Gandhi announced a ‘minimum income guarantee to every poor person’ in his Kisan Abhaar Rally in Raipur on Monday. In his address the farmers and youths, Gandhi made it very clear that with the promise Congress is eying at the topmost seat of the country – Prime Minister – by directly challenging Narendra Modi.

What is Basic Income Scheme?

According to the Universal Basic Income (UBI) model, all citizens of the country or a geographic area are given a sum of money to prevent or reduce poverty and increase equality among citizens. The amount is given regardless of their income, resources or employment status.

Illustrating the model, the economist said under the scheme the government transfers an annual amount of Rs 18,000

or Rs 1,500 per month per household – covering 75 per cent of the rural population at a total fiscal cost of about 1.3 percent of Gross Domestic Product or Rs 2.64 lakh crore in 2019-20 prices, reports the Financial Express.

Along with other economists, Subramanian stated the Union government should aim at making the UBI model better than the Telangana’s Rythu Bandhu initiative and Odisha’s Kalia scheme. As the debate over addressing the farmers issues gaining momentum in the country, Subramanian’s comments on the formulation of UBI model has sparked the fuel of discussion.

(The above story first appeared on LatestLY on Jan 29, 2019 01:53 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).