STEPAN ZEMTSOV: “TARGETED AID TO HOUSEHOLDS IS FAR MORE PREFERABLE THAN BASIC INCOME”
“Nezavisimaya gazeta” published considerations of Stepan Zemtsov, Senior Researcher, the Innovation Economics Department of the Gaidar Institute, on introduction of a minimum guaranteed income.
“Ideally, a minimum guaranteed income can be an attractive tool in dealing with many issues, i.e. reducing poverty, increasing school attendance, falling crime, the opportunity to start a business. However, presently, the replacement of targeted payments with basic income still does not seem to be the preferred option”,Stepan Zemtsov noted.
According to Stepan Zemtsov, introduction of a minimum guaranteed income depends on budget revenues affected by level of production in the economy. Moreover, many countries cannot afford to spread this measure to all residents.
“At present, even rich countries cannot afford a basic income for all residents. For example, the majority of Swiss voted against it at the referendum, because this would require raising taxes,” the expert said.
Stepan Zemtsov also clarified that "introduction of universal basic income is unlikely today in its original sense”.
“Some analogs can be introduced: for example, a minimum guaranteed income. However, this will require higher taxes or cuts in social transfers. Now all the expenditures of consolidated budget of Russia aimed at social policy (social transfers, pensions, unemployment benefits, etc.) amount to RUB 13 trillion a year, that is, approximately RUB 7.500 per person monthly. If they are replaced by basic income, every Russian can count on exactly the same amount. However, this approach will contradict the principles of social justice, as funds will be paid also to those, who do not really need them, while payments to the most vulnerable individuals will be reduced”, the expert of the Gaidar Institute concluded.
According to Stepan Zemtsov, introduction of a minimum guaranteed income depends on budget revenues affected by level of production in the economy. Moreover, many countries cannot afford to spread this measure to all residents.
“At present, even rich countries cannot afford a basic income for all residents. For example, the majority of Swiss voted against it at the referendum, because this would require raising taxes,” the expert said.
Stepan Zemtsov also clarified that "introduction of universal basic income is unlikely today in its original sense”.
“Some analogs can be introduced: for example, a minimum guaranteed income. However, this will require higher taxes or cuts in social transfers. Now all the expenditures of consolidated budget of Russia aimed at social policy (social transfers, pensions, unemployment benefits, etc.) amount to RUB 13 trillion a year, that is, approximately RUB 7.500 per person monthly. If they are replaced by basic income, every Russian can count on exactly the same amount. However, this approach will contradict the principles of social justice, as funds will be paid also to those, who do not really need them, while payments to the most vulnerable individuals will be reduced”, the expert of the Gaidar Institute concluded.