The most popular version of universal basic income is one where every single citizen of a country -- regardless of her social, educational or economic standing -- gets a guaranteed monthly income

The threat of automation and the widening divide between the rich and the poor have pushed the world to consider different income redistribution concepts in the past few years. And one of the concepts that has received the most attention is the idea of a universal basic income, or UBI.

Until a few years ago, UBI -- the idea that government guarantee a fixed monthly income to every citizen of a country -- was largely a utopian one. But now, that probably is an idea whose time has come, to borrow Victor Hugo's words famously quoted by former Prime Minister Manmohan Singh while unleashing the liberalisation process in his 1991 budget.

The idea of universal basic income was discussed in India, like it was in the rest of the world. But that debate took place largely on the sidelines.

Yesterday, however, that idea entered the mainstream when Congress chief Rahul Gandhi announced that if his party was voted to power in the upcoming general elections, it would ensure a minimum income guarantee for the poor.

Rahul Gandhi did not go into the details of his proposal. But, UBI quickly became MIG. However, the two are different.

UBI vs MIG

The most popular version of universal basic income is one where every single citizen of a country -- regardless of her social, educational or economic standing -- gets a guaranteed monthly income.

In India, the concept of universal basic income is slightly different. The concept was studied during the ruling Narendra Modi government's term.

In 2016-17, the Economic Survey of India studied the idea and presented a model for UBI. The basic premise of the Economic Survey's UBI was: "A just society needs to guarantee to each individual a minimum income which they can count on, and which provides the necessary material foundation for a life with access to basic goods and a life of dignity".

The Economic Survey of India's model of UBI suggested providing Rs 7,620 per annum to 75 per cent of India's population. The income was based on Tendulkar's poverty line of 2011-12 inflation-indexed to 2016-17.

Now, Rahul Gandhi's plan seems to target only the poor. Rahul Gandhi has not said whether his proposed minimum income guarantee will cover 22 per cent of the population (as fixed by Tendulkar) or 29.5 per cent (fixed by Rangarajan). Also, Rahul Gandhi has not declared what the "minimum income" has would be.

Suresh Tendulkar and C Rangarajan headed committees that studied poverty in India. Both arrived at different qualification of poverty.

The essential difference between UBI and MIG is this: A universal basic income provides a monthly stipend that would ensure that a person would be above the poverty line without any other source of income. (Thus, the Economic Survey of India suggested a UBI of Rs 7,620 per annum).

A minimum income guarantee, on the other hand, is pretty much at the discretion of the government of the day -- it can be equal, more or less than the poverty line expenditure.