Universal Basic Wage: who would be the beneficiaries and how much would they receive

Itai Hagmannational deputy of front of allpresented last May a bill that proposes a Universal Basic Salary (SBU). What is proposed is that each family group can receive an amount of up to two basic food baskets per month, toasting in the concept of SBU. The initiative seeks to help the millions of informal workers in Argentina who do not have an income that covers a food floor.

The Universal Basic Wage bill estimates about nine million beneficiaries. Taking into account the basic basket of May, which was 14,400 pesos, this could represent for the State and expenditure of more than 129 billion pesos per month. This amount would represent, by itself, 10% of the primary current spending that was in May 2022, making it an incredibly high amount for a single program.

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Also, its implementation would disproportionately aggravate the already significant deficit of the national StateIndeed, It is already financed almost entirely with monetary issue and inflation.according to a report presented by the Institute for Argentine Social Development (IDESA).

Does the Universal Basic Wage encourage informality?

In the last decade, there were more than a million new informal workerswhile there was no creation of private registered salaried employment, maintains IDESA, so from the point of view of the labor market the Universal Basic Wage would also be problematic.

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A measure of such magnitude that, aims to help informal workers financiallywould encourage informal work even more by generating an incentive to be informal. In addition, it puts more pressure on the formal private sector, which will have to financial this new assistance plan, which makes it even more difficult to create formal employment.

According to the paper’s authors, the bill itself admits the overlap with other programs and it is proposed that the current step to be followed after the approval of the law is to “reorganize” the universe of social policies. This seems simple but there are several referents of social movements that have already spoken saying that they will seek to avoid cuts in assistance plans. This implies that it would be very hard to avoid the overlap in social policies if the new project is approved.

On the criteria established by the bill

In the project of Universal Basic Salary Certain criteria are established so that families can access the benefit. But on many occasions It has already been observed that the State is not capable of verifying compliance of the requirements and to manage these projects with the rigor they deserve, says IDESA.

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With the Family Assistance Income (IFE) it was demonstrated that the Argentine State lacks sufficient management skills that require this type of social assistance programs.

Although the project proposed by the ruling party may have good intentions, brings too many complications. The initiative is non-viable from every point of view. Implementing it by force will bring even closer, than it already is, inflationaccording to the report carried out by IDESA.

SE / lm / ds

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