UBI, as an alternative for subsidies in poverty alleviation, stands for

UBI stands for Universal Basic Income. It is a policy paradigm where the state guarantees every citizen a periodic, unconditional cash payment to provide a material foundation for a life of dignity [2]. As highlighted in India's Economic Survey 2016-17, UBI is characterized by three key features: universality (it is for all citizens), unconditionality (no means test or work requirement), and agency (it provides cash directly to individuals) [2]. In the context of poverty alleviation, UBI is often discussed as a more efficient alternative to traditional subsidies, which can be prone to leakages and high administrative costs. Proponents argue that replacing regressive or inefficient subsidies with a universal cash transfer can simplify social welfare, reduce 'welfare traps,' and ensure that the most vulnerable populations have a reliable safety net against economic shocks and automation [3].

Sources

1. [1] Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 9: Subsidies > 9.2.3 Income Support > p. 286
2. [2] Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 3: Poverty, Inequality and Unemployment > universal basic income (ubi) - is this single ubi scheme an alternative to all existing welfare schemes? > p. 42
3. [3] https://www.worldbank.org/en/topic/socialprotection/publication/exploring-universal-basic-income-a-guide-to-navigating-concepts-evidence-and-practices