A targeted cash dole of Rs 5,000 a year for each jobless individual from the poorest sections of society could be introduced in Budget 2017.
However, implementing such a scheme would require the government to dig into funds which were meant for a host of subsidies such as food, health and fuel.
The unemployment benefit is planned as a substitute for the universal basic income, which reports suggested had been considered by the government.
As of now, it is not clear how the funds required for the scheme would be generated. Further, the Niti Aayog is working on a monthly social security scheme