Union Finance Minister, Smt. Nirmala Sitharaman has announced multiple schemes, initiatives and incentives as a part of Budget 2024-25 in skilling, employment and higher education. Out of the nine budget priorities in pursuit of ‘Viksit Bharat’ Employment and skilling, innovation, research and development occupy a critical place.
The PM’s five schemes for Employment and Skilling are intended to create opportunities for 4.1crore youth over a 5-year period. Let’s look at the schemes in detail:
The Government will implement 5 schemes for ‘Employment Linked Incentive’, as part of the Prime Minister’s package. These will be based on enrolment in the EPFO, and focus on recognition of first-time employees, and support to employees and employers.
1. Scheme A: First Timers
The Union Finance Minister said that this scheme will provide one-month wage to all persons newly entering the workforce in all formal sectors. The direct benefit transfer of one-month salary in 3 instalments to first-time employees, as registered in the EPFO, will be up to Rs. 15,000. The eligibility limit will be a salary of Rs. 1 lakh per month. “The scheme is expected to benefit 210 lakh youth”, she said.
2. Scheme B: Job Creation in Manufacturing
This scheme is intended to incentivize additional employment in the manufacturing sector, linked to the employment of first-time employees. An incentive will be provided at specified scale directly both to the employee and the employer with respect to their EPFO contribution in the first 4 years of employment. The scheme is expected to benefit 30 lakh youth entering employment and their employers.
3. Scheme C: Support to Employers
This employer-focused scheme will cover additional employment in all sectors, said the Union Finance Minister. All additional employment within a salary of Rs.1 lakh per month will be counted. The Government will reimburse to employers up to Rs. 3,000 per month for 2 years towards their EPFO contribution for each additional employee. “The scheme is expected to incentivize additional employment of 50 lakh persons”, she added.
4. Scheme: Centrally sponsored scheme in collaboration with state governments and industry
Under this scheme 20 lakh youth will be skilled over a 5-year period and 1,000 Industrial Training Institutes (ITIs) will be upgraded in hub and spoke arrangements with outcome orientation. The course content and design will be aligned to the skill needs of industry and new courses will be introduced for emerging needs.
The Finance Minister announced that the Model Skill Loan Scheme will be revised to facilitate loans up to 7.5 lakh with a guarantee from a government promoted Fund. This measure is expected to help 25,000 students every year.
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5. Scheme: Internship opportunities in top companies
The Government will launch a comprehensive scheme for providing internship opportunities in 500 top companies to one crore youth in 5 years. They will gain exposure for 12 months to real-life business environment, varied professions and employment opportunities, she said.
An internship allowance of Rs. 5,000 per month along with a one-time assistance of Rs. 6,000 will be provided to the youth. Companies will be expected to bear the training cost and 10 per cent of the internship cost from their CSR funds.
To facilitate higher participation of women in the workforce, working women hostels and crèches to be established with industrial collaboration, women-specific skilling programmes to be organized and market access for women SHG enterprises to be promoted.
Schemes in Higher Education
The Finance Minister also announced a financial support for loans upto Rs.10 lakh for higher education in domestic institutions for helping youth who have not been eligible for any benefit under government schemes and policies. While presenting the Union Budget 2024-25 in Parliament today, the Union Minister said that E-vouchers for this purpose will be given directly to 1 lakh students every year for annual interest subvention of 3 per cent of the loan amount.
The Union Finance Minister further said that the Anusandhan National Research Fund will be operationalized for basic research and prototype development. Further, a mechanism will be set up for spurring private sector-driven research and innovation at commercial scale with a financing pool of Rs. 1 lakh crore in line with the announcement in the interim budget.
