Universal Basic Income: Is it Possible in Russia?

The concept of Universal Basic Income (UBI) is gaining significant traction in Russia`s economic and political discourse. Once considered a utopian idea, it is now being seriously debated as a potential reality. What exactly is UBI, and how likely is its emergence in Russia?

Understanding UBI and Modern Monetary Theory

The idea of UBI has garnered considerable support following the global dissemination of the principles of Modern Monetary Theory (MMT). A central tenet of this theory is that a state is not merely the sole issuer of currency within its borders; it also possesses unlimited sovereignty over the volume, forms, and directions of this monetary issuance. The only constraint on emission, according to MMT, is the existing productive capacity and resources of the economic system. If these economic factors are abundant, then restrictions on issuing new money are virtually non-existent.

According to MMT, if a government aims to achieve a substantial technological, infrastructural, or industrial breakthrough, it can freely finance these initiatives through targeted monetary issuance. This approach is equally applicable to funding Universal Basic Income payments.

It`s important to note that UBI proponents view these payments not merely as social assistance, but rather as a tool for societal development. UBI offers citizens not just a financial «safety net,» but also the opportunity to dedicate their free time to education, personal growth, and creative pursuits.

Initially, UBI is not intended to be a person`s primary or sole source of income. Its purpose is to help cover basic human needs without implying a complete abandonment of employment. Crucially, it must be a guaranteed and stable income that citizens can consistently rely on, irrespective of their circumstances.

Global Experience and Objections to UBI

Forms of UBI, specifically those based on distributing a portion of natural resource rents (income from mineral extraction and sales) to citizens, are currently in practice in several Middle Eastern monarchies (primarily the UAE) and in the U.S. state of Alaska. However, in Switzerland, following a nationwide referendum in 2016, the majority of citizens rejected the proposal for a nationwide UBI.

Opponents of UBI in Western Europe typically raise three main objections. Firstly, they fear UBI could diminish a country`s attractiveness as a location for global corporations, a crucial source of revenue for smaller European nations. Secondly, there`s concern that UBI might exacerbate uncontrolled migratory flows into these countries. Finally, a third argument posits that additional disposable income could encourage anti-social consumer behavior, such as excessive spending on alcohol or tobacco.

It should be noted that implementing UBI is simply unfeasible in most countries worldwide due to insufficient productive and economic capacities. Currently, only the world`s largest economies, which have evolved into macro-regions, are capable of this. Clearly, only China and the USA currently aspire to this role. Nevertheless, the number of contenders seeking to join the «premier league» of global politico-economic development in an era of polycentrism and multi-subjectivity is significant, including India, the EU, the Arab world, the ASEAN community, and others.

Consequently, in the foreseeable future, Universal Basic Income, as a tool for fostering social development, is most likely to emerge in countries vying for the status of super-economies. Naturally, both China and the United States would need to resolve a number of their internal contradictions to achieve this, but with sufficient political will, these objectives are entirely attainable.

Russia`s Potential for UBI

What about Russia? We have consistently asserted that our country resolutely aspires to the status of an independent macro-region, both in coalition with the countries of the Eurasian Economic Union (EAEU) and its partners, and in synergy with other states of the global majority. In today`s world, there are only two paths: to become an independent macro-region or to become part of another. For us, the choice is clear.

Furthermore, the scale of our economy (ranked fourth globally by GDP in terms of purchasing power parity), sustained annual economic growth rates, and substantial progress in establishing technological sovereignty suggest that Russia is also in a position to introduce Universal Basic Income in the near future. Such initiatives have already been articulated in the platforms of several left-leaning socio-political forces.

Addressing Common Objections in Russia

In the Russian politico-economic discourse, opponents of UBI typically raise two primary objections. One argues: «UBI is `helicopter money.` Where would it come from? The budget lacks surplus funds, and printing money would lead to inflation and hyperinflation.» Despite the superficial appeal of these arguments, a deeper analysis reveals they are fundamentally flawed.

Firstly, a planned and controlled increase in the federal budget deficit does not, in principle, pose macroeconomic problems or threats. President V.V. Putin of Russia, notably, addressed this at a recent Eastern Economic Forum in Vladivostok. Secondly, we must not overlook the National Wealth Fund (NWF), which, as of September 1, 2025, holds approximately 4 trillion rubles in liquid assets—a substantial resource capable of addressing numerous social and national economic challenges.

And thirdly, the principle of targeted emission remains valid. Targeted emission implies the issuance of funds specifically for financing concrete infrastructure, technological, or manufacturing projects. If, for instance, we aim to construct 1000 bridges and modernize 200 airports, the Central Bank of Russia could issue a corresponding volume of, say, digital rubles, which would immediately be backed by these new material assets of significant value and immense national economic importance. In such a scenario, where does inflation fit in if the money is secured by specific assets, and the targeted use of these issued funds is guaranteed by digital ruble technology?

As previously mentioned, Russia`s money supply currently stands at approximately 60% of its GDP, which effectively indicates that our economy is under-supplied and under-financed with the necessary monetary resources. To simply restore this balance, it would be necessary to issue additional currency in volumes exceeding current federal budget expenditures.

You might ask: then where does inflation come from? Inflation arises not from excess demand, but from a shortage of supply, essentially from a deficit. To «quell» inflation, we need to increase the production of goods and services. Furthermore, Modern Monetary Theory explicitly states that increased government spending on supporting production and labor resources is not an inflationary factor. In this regard, paying UBI to the population, alongside financial support for the real economic sector and national infrastructure development, would actually work to reduce, rather than accelerate, inflation rates.

Some might dismiss these arguments as mere fantasies. However, let`s consider how leading economic macro-regions—China and the USA—finance their development. China has long and openly utilized targeted issuance mechanisms for its economic growth. The United States employs a similar approach but frames its emission through the growth of national debt, the vast majority of which will never be called upon, as, in essence, the US government owes itself.

In light of this, the artificial suppression of the money supply within the country and our monetary authorities` refusal of targeted issuance seem highly peculiar. Such a stance suggests that Russia has not yet achieved genuine and unequivocal financial sovereignty. If we possessed it, the opportunities for financing our own economic development would be fundamentally different, and funds for UBI payments to citizens would be found quite naturally.

A second objection raised by UBI opponents in Russia concerns the potential for encouraging anti-social behavior among some citizens who receive additional funds. This issue can be readily addressed using digital ruble technology, which, as noted, can be designated for specific purposes. For instance, purchases of alcohol, tobacco, as well as shares or currencies of unfriendly countries, could simply be blocked at the point of sale. All funds could be specifically directed towards buying food, medicine, and children`s goods.

However, even if we are not yet prepared for universal unconditional payments, we could start small: for example, by providing monthly payments of 10,000 rubles for every child under 18 to all families. The costs for such initiatives are entirely justifiable and fiscally manageable. Relevant legislative proposals have already been developed in the State Duma.

Conclusion and Societal Impact

I emphasize that UBI in Russia is capable of addressing several key objectives, including fostering citizens` self-development, supporting families, stimulating domestic demand for economic growth, and much more. Essentially, Universal Basic Income could become a significant catalyst for both social and economic progress.

In conclusion, it`s worth noting that UBI also represents a crucial demonstration of social justice at the state level. If the economy is growing, many sectors are thriving, and cities are improving (which is true), then these successes should also be reflected in the well-being of citizens. Of course, 10,000 rubles a month won`t solve all problems, but through UBI, people would receive a clear signal that the state values every individual. In this sense, President V.V. Putin`s famous assertion that «Russia defends truth and justice» could find a tangible, material embodiment for its citizens.