UBI or BIG now -Income for all or just for those who really needs it?
UBI - Universal Basic Income
BIG - Basic Income Guarantee
"UBI grants all citizens of a country or a selected geographic area with a fixed sum of money, regardless of their income, resources or employment status, the purpose of which is to basically provide income security to meet basic needs. BIG also involves cash transfers designed with a similar purpose but targets only low income or poor individuals.0
"The Philippines has a long experience of various types of cash transfer —the Pantawid Pamilya, a conditional cash grant of around P1,400 per month, the Social Pension for Indigent Senior Citizens, around P500 per month, and the Unconditional Cash Transfer due to TRAIN effects at P300 per month. Current Philippine spending on social assistance is at 0.7 percent of GDP as compared to an average of 1.5 percent of GDP for developing countries. Resources-wise, obviously UBI will be unaffordable for the Philippines at the present time. BIG may be affordable but transfers should be given to families and not individuals. It should also be targeted and the delivery mechanism can use the existing infrastructure used by the Pantawid Pamilya.
"In 2018, a family of five needed no less than P7,528, on average, to meet the family’s basic food needs for a month (the food threshold). On the other hand, no less than P10,727, on average, was needed to meet both basic food and nonfood needs of a family of five in a month (the poverty threshold). For a cash grant of P2,500 per month for a poor household, the government needs P72.5 billion or 2.1 percent of total budget for 2019 and around .41 percent of GDP. For P5,000 per month per poor household, it is P145 billion, 4.2 percent of total budget and .82 percent of GDP. If we want every Filipino to meet the food threshold, there should be around P7,500 per month transfer per family with a total cost of P217.5 billion, 6.3 percent of the total budget and around 1.23 percent of GDP. Which administration will have the political will to implement this BIG?"
Now is the time for the government to implement either UBI or BIG! Shoring up the economy by just assisting businesses will fail if there are no customers with money to spend.