The Union Budget of India was tabled in the presentation by Finance Minister Nirmala Sitharaman on July 22, 2024. Before this, an interim budget for 2024 was tabled by the finance minister in February, 2024. The new budget has identified its 4 main stakeholders as youth, women, farmers and the poor.
As a move to promote and generate employment, especially for first-time employees, the government has introduced five key schemes in the Union Budget 2024. The schemes also focus on skill generation amongst the youth. Let us have a look at these key budget announcements.
What Are The Employment Schemes?
The three schemes propose to work in consonance with each other. These key schemes in the Union Budget 2024 address the concerns of both employers and employees. The major objectives of these schemes are given as under
Scheme A: One Month’s Wage For Those Employed For The First Time
Support for one month’s salary of a fresher employee will be given to eligible enterprises.
Such a wage will not exceed Rs. 15,000 and shall be paid as a Direct Benefit Transfer (DBT) to the eligible receiver. The eligibility limit to receive this benefit will be a salary of up to Rs. 1,00,000 per month.
The scheme aims to benefit the targeted 30 lakh new employees and their employers. This scheme will generate ease of employment.
Scheme B&C: Employment Creation In The Manufacturing Sector And Support To Employers
With an emphasis on enrollment of youth in the Employees Provident Fund Organisation (EPFO), the government aims to increase employment in the manufacturing sector. The scheme will offer EPFO-linked incentives to both employees and employers. With this scheme, the employers will receive up to Rs. 3000 in reimbursement of EPFO contributions for each employee, for 2 years.
This scheme aims to generate additional, 50 lakh new jobs in the manufacturing sector. These jobs will supplement other employment opportunities.
In a significant move for students, the Model Skill Loan Scheme will now offer loans of up to Rs 7.5 lakh with the backing of a government-guaranteed fund. This change is estimated to benefit 25,000 students annually.
The other two schemes are related to the capacity building of a human resource.
Scheme D: Skilling Programme & ITI Upgradation
This scheme aims to provide Industry-aligned courses, capacity building, and training for 20 lakh students. It has a total allocation of ₹60,000 crore total. Its division is as follows: ₹30,000 crore, States: ₹20,000 crore, Industry: ₹10,000 crore including CSR. Further, it has an objective of upgrading 1,000 ITIs in a hub-and-spoke model over 5 years.
Scheme E: Internship in Top Companies
An internship scheme seeks to provide internships to youth aged between 21-24 years of age. It will provide them with skills and exposure opportunities. The internship will be provided in top companies with an internship allowance or stipend of Rs. 5000. However, this scheme excludes people with higher education or degrees and those having family members paying income tax.
Apart from these schemes, the government will provide financial assistance for higher education loans up to Rs 10 lakh for students enrolled in institutions in India, with 1 lakh students receiving e-vouchers annually.
These Budget 2024 highlights are estimated to increase the employability in India from 1.13 Lakh Crores in 2023-2024 to 1.48 Lakh Crores.
Conclusion
With the evident increase of 30% in the Union Budget 2024 towards education, employment and Skilling, India is set to see a brighter future in all these sectors. Interests of both employers and employees have been balanced through these schemes. Furthermore, education and skilling are being facilitated and promoted.
For more highlights and news on Union Budget 2024, stay tuned to Jaagruk Bharat on our official website and social media handles. The budget speech can be accessed in a written format here.
