Minimum Guaranteed Income Bill: What All You Need To Know

The Ashok Gehlot led Rajasthan government tabled The Rajasthan Minimum Guaranteed Income Bill in the Rajasthan Assembly on July 19, 2023. The Bill seeks to ensure a certain income/pension shall be given to all adults in the state.

What¡¯s there in the bill?

The bill is divided into three components:

- Right to Minimum Guaranteed Income: This component would guarantee that all adults in the state receive a minimum income of Rs. 1,000 per month. This income would be provided through a combination of guaranteed employment and social security pensions.

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- Right to Guaranteed Employment: This component would guarantee that all adults in the state have the right to work for 125 days per year at the minimum wage. This would be provided through the Indira Gandhi Shahri Rozgar Guarantee Yojana (IGSY) in urban areas and the Chief Minister Rural Employment Guarantee Scheme (CMRGS) in rural areas.

- Right to Guaranteed Social Security Pension: This component would guarantee that all adults in the state who are 60 years of age or older, or who are disabled, receive a social security pension of Rs. 1,000 per month.

Why is the bill important?

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- Reduce poverty and inequality: The bill would provide a guaranteed income to all adults in the state, regardless of their employment status. This would help to reduce poverty and inequality by ensuring that everyone has a basic level of income to meet their basic needs.

- Boost economic growth: The bill could boost economic growth by giving people more money to spend. This would increase demand for goods and services, which would lead to businesses hiring more workers and expanding their operations.

- Improve health and education outcomes: The bill could improve health and education outcomes by giving people more money to spend on healthcare and education. This would help to ensure that everyone has access to quality healthcare and education, which would improve their overall well-being.

- Increase social cohesion: The bill could increase social cohesion by giving people a sense of security and belonging. This would help to reduce social tensions and conflict, and it would create a more cohesive and inclusive society.

Potential Challenges in implementing the Bill

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- Cost:

The expected cost of the bill is around Rs. 2,500 crore per year. The cost is really huge and on the other hand, it is not clear how the state government will raise the necessary funds. The government may need to raise taxes, cut other spending, or borrow money.

- Implementation:

The Bill would need to be carefully designed and implemented in order to ensure that it reaches the intended beneficiaries and that it does not have unintended consequences. Bill may even discourage people from working if they are guaranteed a minimum income.

- etermining the appropriate level of income:

There are various debates surrounding the level of income that should be set under a minimum income. Some people argue that the income should be high enough to lift people out of poverty, while others argue that it should be lower so that people are still incentivized to work.