The correct answer is all of the above Explanation & Key Takeaways: Universal Basic Income • It is a programme for providing all citizens of a geographic area (a country or state) with a given sum of money, regardless of their income, resources or employment status. Hence statement 1 is correct. • The main idea behind UBI is to prevent or reduce poverty and increase equality among citizens. • The essential principle behind Universal basic income is the idea that all citizens are entitled to a livable income, irrespective of the circumstances they’re born in. Hence statement 2 is correct. UBI has the following important components: • Universality (all citizens included). • unconditionality (no prior condition). • Periodic (Payments at periodic regular intervals). • Payments in cash (not food vouchers or service coupons). Benefits of Universal Basic Income (UBI): • Provide secured income to individuals. • Reduce poverty and income inequality in society. • Increase the purchasing power of every poor which will further increase aggregate demand. • Easy to implement because no identification of the beneficiary is involved. • Reduce the wastage of government money because its implementation is very simple. Challenges in Implementing Universal Basic Income in India: • The high cost involved in implementing UBI is a major factor contributing to the lack of political will in working towards the universal basic income in India. • It would reduce the motivation for work and might encourage people to live off assured cash transfers and it is simply unaffordable.