ABSTRACT

Is there a case for an assured minimum basic income for the poor? If yes, are there criteria that can be used to precisely identify and target the eligible households? In this chapter, we address these questions and the related issues. The effect of COVID-19 has brought these issues to the front of the debate on how to help the poor. We argue that the households facing multi-dimensional poverty require special interventions. In this chapter, we discuss several verifiable criteria that can be used to better identify the poorest of the poor households. These criteria can help reduce the errors of inclusion and exclusion while targeting the poorest of the poor. Using three datasets, we apply these criteria to derive estimates of the poor households in rural India. We argue that there is a case for limited duration direct income support only for the poor households that face multi-dimensional poverty. The income support should be provided as a supplement of the universal basic services.