Universal basic income theory and its applicability in Turkey

Universal basic income (UBI) refers to the unconditional and regular transfer of cash income by the state to everyone in a society at regular intervals. Nowadays, this idea, whose historical origins are very old, is supported and discussed by many different political and economic circles. UBI goes from the liberation of the individual in every field to the increase of the bargaining power of the workers in the labor market; it is advocated for many reasons, from alleviating the effects of poverty to reducing the imbalance in income distribution. UBI does not include bureaucratic processes such as income testing and covers everyone unconditionally; it significantly separates universal basic income from existing social welfare programs and makes its implementation extremely simple from an administrative point of view. Despite this advantage, its financial applicability is one of the most important issues that have been criticized. The aim of the study is to evaluate the applicability of the universal basic income in Turkey from a financial point of view. In this context, different amounts and scopes specific to Turkey were determined, and a total of 12 different scenarios were created. The costs of the scenarios were calculated and Turkey's indebtedness status, public expenditures and public revenues were tried to be examined regarding how these costs could be financed. As a result of the study, it has been evaluated that the universal basic income, which will cover a very large part of the society, is financially viable.