Indian government considering handing out cash to fight poverty

Indian government to consider handing out cash to fight poverty

The Indian Ministry of Finance is said to be considering removing welfare programmes in favour of handing out a lump sum

Monday, February 6, 2017

The government of India is reportedly considering creating a 'universal basic income' in cash handouts to fight poverty. 

The Indian Ministry of Finance is trialling the concept of eliminating welfare programmes and instead handing out enough money to cover basic needs. 

The move is said to come as part of the government's attempts to crack down on 'black money' and counter cash shortages. 

While similar initiatives have been trialled in Finland and Canada, critics of the programme suggest it could create too much of a reliance on government money.

The Finance Minister of India, Arun Jaitley, said it was a "wonderful idea", but suggested that the main obstacle to its effectiveness would be the lack of maturity in Indian politics.