Difference Between Minimum Guarantee Scheme and Universal Basic Income

By : Neha Dhyani

Updated : May 31, 2022, 10:50

The Government of India is committed to working toward the welfare of the people through various schemes. Two such popular schemes are the minimum Guarantee Scheme (MIG) proposed by Rahul Gandhi of the Congress party and the Universal Basic Income( UBI), which former Chief Economic Adviser Arvind Subramanian officially suggested in the Economic Survey of 2016-17.

This post teaches us more about these two schemes and the key Difference Between Minimum Guarantee Scheme and Universal Basic Income.

Features of the Minimum Guarantee Scheme (MIG)

The key features of the MIG are-

  • Also known as NYAY, the scheme covers only the poor rural and urban households in the country.
  • It is a targeted plan that does not give money to all the citizens of the country.

Features of Universal Basic Income (UBI)

The key features of the UBI are-

  • UBI is a periodic (monthly) cash transfer scheme that covers every citizen in the country. The plan does not differentiate between people based on social background or employment status.
  • Under the scheme, every individual can get cash instead of vouchers for goods or services.
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The Difference Between Minimum Guarantee Scheme and Universal Basic Income

The Key Difference between Minimum Guarantee Scheme (MIG) and Universal Basic Income (UBI) is-

Minimum Guarantee Scheme (MIG)Universal Basic Income (UBI)
MIG is a targeted scheme specifically designed for the country's poor rural and urban householdsUBI is more of a universal scheme and does not identify the beneficiaries
The MIG mandates the State Government, Union Territories, and other institutions to determine eligible beneficiaries to disperse the fixed amount in their accountUBI is unconditional, the beneficiaries need not prove their unemployment status or socio-economic background for eligibility
MIG considers the whole family as a unit for the benefitUBI considers every member of the family
The minimum Guarantee (MIG) scheme proposes to transfer Rs. 6000/- per month to 25 crore people.Universal Basic Income offers to give Rs 7,620/- per annum to 75% of the population (a number arrived at by taking into consideration the 2011-12 Tendulkar poverty line)
The amount allocated under MIG would be 2% of the GDPThe amount incurred under the UBI scheme would be 4.9% of the country's GDP

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FAQs on Difference Between Minimum Guarantee Scheme and Universal Basic Income

Q1. What is the Difference Between Minimum Guarantee Scheme and Universal Basic Income in terms of the proposer?

The Difference Between Minimum Guarantee Scheme and Universal Basic Income is that MIG is proposed by Rahul Gandhi of the Congress Party. Whereas the UBI was proposed by the former Chief Economic Advisor Arvind Subramanian.

Q2. What is the Difference Between Minimum Guarantee Scheme and Universal Basic Income in terms of allocation against GDP?

The Difference Between Minimum Guarantee Scheme and Universal Basic Income in terms of allocation against GDP is that amount allocated under the Minimum Guarantee Scheme would be 2% of the GDP. Whereas the amount incurred under the Universal Basic Income scheme would be 4.9% of the country's GDP.

Q3. What is the Difference Between Minimum Guarantee Scheme and Universal Basic Income in terms of the absolute amount allocated?

The Difference Between Minimum Guarantee Scheme and Universal Basic Income in terms of the absolute amount allocated is that the Minimum Guarantee (MIG) scheme proposes to transfer Rs. 6000/- per month to 25 crore people. Whereas universal basic income offers to give Rs 7,620/- per annum to 75% of the population (a number arrived at by taking into consideration the 2011-12 Tendulkar poverty line).

Q4. What is the Difference Between Minimum Guarantee Scheme and Universal Basic Income in terms of eligibility?

The Difference Between Minimum Guarantee Scheme and Universal Basic Income in terms of eligibility is that under the MIG scheme, the entire family is considered a single unit for money transfer rather than an individual member of the family. On the contrary, every family member is eligible to receive the money under UBI.