New Delhi: “In this Budget, we particularly focus on employment, skilling, MSMEs and the middle class,” stated Union Minister for Finance and Corporate Affairs, Nirmala Sitharaman, while presenting the Union Budget 2024-25 in Parliament today. This year’s budget aligns with the priorities of the newly elected government and introduces a comprehensive package of five schemes aimed at empowering the youth and boosting the economy.
Prime Minister’s Package: Empowering 4.1 Crore Youth
The Finance Minister announced a major initiative, the Prime Minister’s package, with a central outlay of Rs. 2 lakh crores over five years. This ambitious package aims to facilitate employment, skilling, and other opportunities for 4.1 crore youth. “This year, I have made a provision of Rs. 1.48 lakh crores for education, employment, and skilling,” Smt. Sitharaman added.
Employment Linked Incentive Schemes
Three new schemes under the Prime Minister’s package will focus on ‘Employment Linked Incentive,’ benefiting first-time employees and supporting employers:
Scheme A: First Timers This scheme aims to benefit 2.1 crore youth over two years. It will provide a one-month wage to all persons newly entering the workforce in formal sectors, with an eligibility limit of Rs. 1 lakh per month salary. Direct benefit transfer of up to Rs. 15,000 will be provided in three installments to first-time employees registered in the EPFO. Employees must undergo a compulsory online financial literacy course before claiming the second installment. Employers must refund the subsidy if employment ends within 12 months of recruitment.
Scheme B: Job Creation in Manufacturing Targeting the manufacturing sector, this scheme will incentivize additional employment, benefiting 30 lakh youth. Both employees and employers will receive incentives related to their EPFO contribution for the first four years of employment. Employers must refund the subsidy if employment ends within 12 months of recruitment.
Scheme C: Support to Employers This scheme covers all sectors, providing reimbursement to employers of up to Rs. 3,000 per month for two years towards their EPFO contribution for each additional employee, expected to incentivize the employment of 50 lakh persons.
Skilling Initiatives
The fourth scheme under the Prime Minister’s package focuses on skilling, with a total outlay of Rs. 60,000 crores. In collaboration with State governments and industry, the scheme aims to skill 20 lakh youth over five years. The plan includes upgrading 1,000 Industrial Training Institutes (ITIs) to align with industry needs and introducing new courses for emerging skills.
Internship Opportunities
The fifth scheme will launch a comprehensive internship program providing opportunities for 1 crore youth in 500 top companies over five years. Eligible youth aged 21 to 24, who are not employed or in full-time education, will receive an internship allowance of Rs. 5,000 per month and a one-time assistance of Rs. 6,000. Companies will bear the training cost and 10% of the internship cost from their CSR funds.