Let's be done with subsidies already

There is a simple way to go about it: a universal basic income

Saahil Parekh

Over and above the provision of different public goods like roads, or a police force, or the judicial system, the government uses the tax revenues it collects to provide essential commodities like foodgrains, fertilisers and Kerosene at subsidised prices. It does this by fixing market prices of these commodities at an affordable level and paying the producers of these commodities the difference which they couldn’t recover because of fixed lower prices. This redistribution mechanism of the government is aimed towards reducing income inequality, and increasing access, equity and ...