Minimum income guarantee funding may rely on tax buoyancy, budget rationalisation and strict targeting to avoid new targeted taxes.
The article analyses the NYAY Minimum Income Guarantee targeting the poorest 20 percent and assesses whether the large fiscal requirement can be met without imposing new targeted taxes. It proposes funding from tax buoyancy, rationalisation and dovetailing of existing central schemes, Direct Benefit Transfer mechanisms, partial state contributions and modest non-interest expenditure savings. It rejects further taxation of individuals, corporations, agricultural exemptions or charitable receipts as unsuitable, and stresses that success depends on stringent sourcing, accurate targeting to beneficiaries, minimising leakages and managing macroeconomic risks. (AI Summary)