Budget 2024: Finance Minister Announces Employment, Skilling Schemes Worth Rs 2 Lakh Crore

Finance Minister Nirmala Sitharaman has announced a package of five schemes and initiatives for employment, skilling, youth etc. with a total outlay of Rs 2 lakh crore.

She announced this in the introduction of her Union Budget 2024 speech while adding that this year's budget would focus on employment, skilling, MSMEs and middle class.

Specifically, the Finance Minister said that a provision worth Rs 1.48 lakh crore has been made for education, employment and skilling of the youth in this Budget 2024.

While elaborating on the schemes, Sitharaman said that the government has set up the following three schemes for employment:

• For First Timers: This scheme would provide one month wage to all persons newly entering the workforce in all formal sectors. For this, a direct benefit transfer of one month's salary would be given. The eligibility of this would be up to Rs 15,000 for those with a salary of Rs 1 lakh per month.

• Job Creation In Manufacturing: This scheme would provide additional employment to jobs in the sector. Incentive would be provided at specified scale to both employee and employer with respect to Employees' Provident Fund Organisation contribution in the first four years of employment.

• Support To Employers: This scheme would cover additional employment in all sectors. Hence, all additional employment within the salary of Rs 1 lakh per month to be counted. The government would reimburse Rs 3,000 per month to employers, towards EPFO contribution for two years for each additional employee.

• Skilling Of Youth: The Finance Minister said that a new centrally sponsored scheme for state government and industry would be set up for skilling of 20 lakh youth over a five year period. Under this, 1,000 industrial training institutes would be updated and the course content would be aligned with skill needs. The Model Skill Loans scheme would also be revised in order to facilitate loans up to Rs 7.5 lakh with the guarantee of government-supported fund.

For education of youth and those who are not eligible under other schemes, financial support for loans up to Rs 10 lakh for higher education in domestic institutions, would be provided. E-vouchers for this purpose would be given directly to 1 lakh students every year for annual interest subvention of 3% loan amount, Sitharaman said in her Budget 2024 speech.

• Internship Opportunities For Youth: As a fifth scheme under the PM's package, Sitharaman announced the government would provide internship opportunities to over 1 crore youth in top 500 companies. For this, an internship allowance of Rs 5,000 per month and a one-time allowance of Rs 6,000 would be provided under the scheme. She added that the training cost would be expected to be borne by the companies from their CSR funds.

For participation of women in workforce, the government will set up working women hostels in collaboration with industry and also set up creches. Women-specific skilling programs and for-women self-help groups would be set up.

"...Schemes announced in the interim budget are well underway," she added.

The Union Budget 2024 is the full budget after the new government, led by Prime Minister Narendra Modi, came to power in Lok Sabha elections 2024. Before this, in February, an interim budget was presented.