SOAS Research Online

Abstract

This article provides a review of the arguments for and against cash transfers in India, taking care to distinguish between different types of cash transfer schemes, which include a universal unconditional basic income as well as conditional schemes. The article sets out some principles by which any social policy should be judged and goes on to discuss cash transfers alongside other instruments of social policy, namely the Public Distribution System (PDS) and the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS). It then examines the principal hypotheses associated with the arguments for and against cash transfers as a social policy instrument, drawing upon international experience. The article concludes that a universal unconditional basic income would have important advantages over alternative schemes, but cautions against undue haste in rolling out cash transfers to ensure a smooth transition.