Union Budget: 1-month wage for new entrants in workforce; Rs 1.48 lakh cr for employment, skilling
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New Delhi: The Centre on Tuesday announced three employment-linked incentives to address the labour supply and demand gap in the country. The Union Budget for 2024-25 will provide Rs 1.48 lakh crore for education, employment and skilling in the country.
While presenting the budget, Finance Minister Nirmala Sitharaman said a one-month wage will be provided to all new entrants work force. The amount will be provided to the employees as Provident Fund contribution. At least 210 lakh youth are expected to benefit from the scheme.
The government will also support to employers to cover additional employment in all sectors. Working women hostels will be set up in the country to promote women's participation in the workforce. Other announcements include Rs 5,000 internship allowance, one-time aid of Rs 6,000 and internship in 500 top companies to be encouraged under new scheme.
MGNREGA
An already existing scheme -- MGNREGA (Mahatma Gandhi National Rural Employment Guarantee) -- aims to provide 100 days of wage employment in a particular fiscal year to at least one member of every household whose adult members seek manual work.
Skilling
The government also announced a new centrally-sponsored scheme for skilling 20 lakh youth over the next five years. The minister said that model skilling loan scheme will be revised to facilitate loans up to Rs 7.5 lakh. As part of boosting skilling efforts, 1,000 ITIs will be upgraded on the hub-and-spoke model. Besides, the government will provide financial support for loans up to Rs 10 lakh for higher education in domestic institutions. Sitharaman said the new centrally-sponsored scheme for skilling in collaboration with states and industry will train 20 lakh youth over a period of five years.
India's official unemployment rate in urban areas is close to 6%, but private agency the Centre For Monitoring Indian Economy pegs it higher, at close to 9%. Government data this month showed 20 million new job opportunities generated in India each year since fiscal 2017-18, but private economists said self-employment and temporary farm hiring accounted for much of the figure, rather than formal positions with regular wages.