What is Minimum Income Guarantee and Universal Basic Income?

A minimum Income Guarantee (MIG) is a scheme wherein a complete household is treated as a single entity and does not receive money individually. Universal basic income (UBI) is a socio-political, monetary transfer policy stating that all individuals of a specific nation get an equal cash gift distribution from the Government that is legitimate.

What is an example of Universal Basic Income?

Everyone would receive a level of money from a universal basic income that would ensure they could meet their fundamental needs, such as those for food, shelter, and clothes, as well as additional support if they required it during trying times.

What is the difference between Minimum Income Guarantee and Universal Basic Income based on the absolute amount allocated?

The difference between Minimum Income Guarantee and Universal Basic Income based on 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).

Why Universal Basic Income is ineffective?

Receivers of the UBI have less incentive to work , advance their talents, or better their lives because there are no requirements placed on them. The UBI is a damaging policy for the same people it is meant to benefit due to this ignorance of an important aspect of human nature.

Who introduced UBI and MIG?

UBI and MIG stand for Universal Basic Income and Minimum Income Guarantee. Universal Basic Income or UBI was put forward by Arun Jaitley (Former Finance Minister) under the NDA Government, while Congress Party put forward the Minimum Income Guarantee or MIG scheme.

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Difference Between Minimum Income Guarantee and Universal Basic Income – MIG vs UBI

Q: What is the eligibility difference between Minimum Income Guarantee and Universal Basic Income?

The eligibility difference between Minimum Income Guarantee and Universal Basic Income 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 .

By BYJU'S Exam Prep

Updated on: November 14th, 2023

The difference between Minimum Income Guarantee and Universal Basic Income is that Minimum Income Guarantee is a targeted scheme, while Universal Basic Income is a universal scheme. The Government of India is committed to working toward the welfare of the people through various schemes. Minimum Income Guarantee (MIG) and Universal Basic Income (UBI) are the two popular schemes.

Difference Between Minimum Income Guarantee and Universal Basic Income PDF

The difference between MIG and UBI is that MIG was proposed by Rahul Gandhi of the Congress party, and the Universal Basic Income (UBI) was suggested by the former Chief Economic Adviser Arvind Subramanian in the Economic Survey of 2016-17. Let us check the difference between Minimum Income Guarantee and Universal Basic Income and other related details.

Table of content

1. Difference Between Minimum Income Guarantee and Universal Basic Income
2. Minimum Income Guarantee and Universal Basic Income
3. What is Minimum Income Guarantee (MIG)?
4. What is Universal Basic Income (UBI)?
5. Key Difference Between Minimum Income Guarantee and Universal Basic Income

Difference Between Minimum Income Guarantee and Universal Basic Income

Every member of the family will receive money under UBI, but under MIG, the family is treated as a whole. Hence everyone will not receive money. The difference between Minimum Income Guarantee and Universal Basic Income is given below.

Minimum Income Guarantee vs Universal Basic Income – MIG vs UBI

Difference Between Minimum Income Guarantee and Universal Basic Income
Minimum Income Guarantee (MIG)	Universal Basic Income (UBI)
MIG is a targeted scheme specifically designed for the country’s poor rural and urban households.	UBI 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 account.	UBI 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 benefit.	UBI 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 GDP.	The amount incurred under the UBI scheme would be 4.9% of the country’s GDP.

Minimum Income Guarantee and Universal Basic Income

UBI is a universal benefit. That implies that in order to qualify for UBI, one does not need to demonstrate their unemployed status or socioeconomic identification. In contrast, the State Government, Union Territories, and other institutions must identify the beneficiaries under the MIG system in order to distribute the fixed sum into their accounts.

What is Minimum Income Guarantee (MIG)?

According to the Minimum Income Guarantee (MIG) scheme, the entire family will be treated as a single entity and would not get money individually. Every member of the household will get money under the Universal Basic Income (UBI) program. The key features of the MIG are as follows.

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.

What is Universal Basic Income (UBI)?

A socio-political, financial transfer policy called universal basic income (UBI) proposes that all people of a given nation receive an evenly distributed cash gift from the government that is determined legally.

An unrestricted universal basic income.
It mandates that everyone should be entitled to a basic income that will meet their requirements just by virtue of being a citizen.

The key features of the UBI are as follows.

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.

Conclusion:

Key Difference Between Minimum Income Guarantee and Universal Basic Income

The key difference between Minimum Income Guarantee and universal basic income is that Congress Party has proposed a Minimum Income Guarantee (MIG), while the NDA administration has proposed a Universal Basic Income (UBI). The MIG is a targeted program for the nation’s disadvantaged rural and urban households, whereas the UBI is a universal program that does not identify the beneficiaries.

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