Finland to pay 800 euros basic monthly income to all citizen, scrape benefits

Finland will give all its citizens 800 euros ($1,187) per month as national basic income and scrap social welfare benefits and income support packages.

According to The Independent, this plan would give each of the 5.4 million finn 800 euros tax free every month, costing the government 52.2 billion euros annually. However, the country is only expected to make 49.1 billion euros worth of revenue for 2016. The Finnish Social Insurance Institute, the agency that planned the proposal, conducted a survey showing that 69 percent of the Finn supported the plan.

ABC reported that the plan, which Kela will be presented on November 2016, is expected to reduce unemployment in the country. On October, unemployment rates were at high levels at 8.7 percent. Low-paid temporary jobs in the country is worse than being unemployed, because of the lower welfare payments and slow reinstatement of benefits after the job contract is done.

Prime Minister Juha Sipila also supported the idea, saying basic income makes the social security system simpler. It is still unclear, however, how the government will afford this endeavor, considering that Finland's economy is very shaky.

NYSE Post explains basic income as a regular and unconditional payment by the state to all the members of the society, whether they have a job or not. Wealthier people will still be required to pay taxes, but a millionaire would only get 800 euros per month and not get benefits from the government.

Kela will implement a pilot phase before the proposal is officially implemented. During that phase, the citizens will receive 550 euros a month.

Finnish prime minister Juha Sipila also supports the idea, saying, "For me, a basic income means simplifying the social security system."

There are other countries and cities in the world that are planning to follow this endeavor. The Dutch city Utrecht is planning to have a trial for the basic income in 2016.