Union Budget 2024 | Rs 2 lakh crore package to support jobs, skilling; 4.1 crore youth to benefit

New Delhi: Prime Minister Narendra Modi government on Tuesday unveiled a slew of initiatives to support skilling and jobs with a financial outlay of Rs 2 lakh crore over the next five years which is estimated to benefit 4.1 crore youth.

In the Union Budget 2024-25 Finance Minister Nirmala Sitharaman announced a package of 5 schemes and initiatives called “Prime Minister’s package”.

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“In this budget, we particularly focus on employment, skilling, MSMEs, and the middle class. I am happy to announce the Prime Minister’s package of 5 schemes and initiatives to facilitate employment, skilling and other opportunities for 4.1 crore youth over a 5-year period with a central outlay of Rs 2 lakh crore,” Sitharaman said while presenting her 7th consecutive budget for the Government of India.

Three schemes will be implemented in the form of ‘employment-linked incentives’, while one will be focused on skill development in partnership with state governments and the other will facilitate internship for youth in big companies. The employment-linked incentive schemes will be based on enrolment in the Employees Provident Fund Organisation (EPFO).

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Under a new proposed scheme the government will provide one month’s salary, up to Rs 15,000, to first-time employees. The eligibility limit will be a salary of Rs 1 lakh per month. This means any person who enters the workforce in the formal sector and gets registered in the EPFO will be eligible to receive up to Rs 15,000 from the government, provided the monthly salary is not more than Rs 1 lakh.

According to the Finance Ministry, the scheme is expected to benefit 2.1 crore youth over 2 years. The money will be given to employees in the form of direct benefit transfer (DBT) in three installments. “The employee, in turn, must undergo a compulsory online financial literacy course before claiming the second instalment. Further, the subsidy would have to be refunded by the employer if the employment to the first timer ends within 12 months of recruitment,” the Finance Ministry said in a statement.

Under a proposed employer-focused scheme, the government will reimburse Rs 3,000 per month to employers for two years towards EPFO contributions for each additional employee. The new employees under this scheme need not be new entrants to EPFO. The scheme is expected to incentivise additional employment of 50 lakh persons.

In a bid to boost hiring in the manufacturing sector, the Union Budget 2024-25 proposes to provide financial incentives to both employees and employers with respect to their EPFO contribution in the first 4 years of employment in the sector. The scheme is expected to benefit 30 lakh youth entering employment, and their employers.

Another scheme part of the Prime Minister’s package will focus on providing internship opportunities to youth in big companies. “Our government will launch a comprehensive scheme for providing internship opportunities in 500 top companies to 1 crore youth in 5 years,” Sitharaman said. Participation of companies in the scheme will be voluntary.

Youth aged between 21 and 24, who are not employed and not engaged in full time education will be eligible to apply for this scheme. An internship allowance of Rs 5,000 per month, along with a one-time assistance of Rs 6,000 will be provided to the candidates.

“This significant investment in skill development programmes and the incentivisation of industries to adopt comprehensive apprenticeships lays a solid foundation for a future-ready workforce,” said Ramesh Alluri Reddy, CEO at TeamLease Degree Apprenticeship.

“By focusing on employment and skilling, the government is not only addressing the immediate need for employment but also building a sustainable pipeline of skilled professionals for the future,” Reddy added.

Union Budget 2024 LIVE | Making a record for any Finance Minister, Nirmala Sitharaman presented her 7th consecutive Union Budget on July 23, 2024 under the Modi 3.0 government. This Budget brought tax relief for the middle class, while focusing on jobs through skilling, incentivising employers. Track the latest coverage, live news, in-depth opinions, and analysis only on Deccan Herald. Also follow us on WhatsApp, LinkedIn, X, Facebook, YouTube, and Instagram.