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Employment and Skilling Budget 2024 Highlights: FM Allocates ₹1.48 Lakh Crore
The government will provide financial support for loans up to ₹10 lakh for higher education in domestic institutions
In her speech, she highlighted that the government will focus on “employment, skilling, medium and small enterprises (MSME), and the middle class” over the next five years.
Top Highlights for Education, Employment, and Skilling in Union Budget 2024
The Prime Minister’s package includes 3 “Employment Linked Incentive” schemes to be implemented
- Scheme A targets first-time job seekers.
- Scheme B encourages job creation in manufacturing.
- Scheme C provides support to employers.
2. One Crore internship opportunities at Top 500 companies over the next 5 years.
3. New centrally sponsored skilling scheme launched under the Prime Minister’s Package to benefit 20 lakh youth over a 5-year period.
4. Model Skill Loan Scheme to be revised, enabling loans up to ₹7.5 lakh.
5. Financial support for loans up to ₹10 lakh for pursuing higher education in domestic institutions.
Read More About: Union Budget 2024 Top 10 Highlights & Live Updates
1. Financial Support for Higher Education in Domestic Institutions
The government will provide financial assistance in the form of loans up to ₹10 Lakh for higher education and domestic industries.
2. Interest subvention of 3% of Loan Amount
The government will grant financial assistance through e-vouchers, which will be directly given to 1 Lakh students annually, along with an interest subsidy of 3% on the loan amount.
3. 1,000 Industrial Training Institutes (ITIs) in Hub-and-Spoke Model
The Finance Minister also outlined several initiatives for the skill development sector. These include the upgrading 1,000 Industrial Training Institutes (ITIs) in hub-and-spoke model, aligning course content with skill requirements of industry and revising model skill loan scheme.
4. Model Skill Loan Scheme
Our Union Finance Minister also stated that the model skill loan scheme will be revised to facilitate loans up to Rs. 7.5 Lakh with a guarantee the government promoted-fund.
The model skill loan scheme is likely to benefit 25,000 students per year.
5. Three Employment Linked Incentives
Ms. Sitharaman has also announced that the government will implement three schemes for ‘Employment Linked Incentive’ as a part of the Prime Minister’s package. These schemes will be based on enrollment in the IPFO and will focus on recognizing first-time employees and providing support to both employees and employers.
Scheme A: ‘First Timers’
- This scheme provides one month’s wage to all individuals entering the workforce in formal sectors.
- The direct benefit transfer of up to ₹15,000, disbursed in three installments, will be given to first-time employees registered with EPFO.
- The eligibility limit is a salary of ₹1 Lakh per month.
Scheme B: ‘Job Creation in Manufacturing’
- This scheme incentivizes additional employment in the manufacturing sector, particularly for first-time employees.
- An incentive, tied to EPFO contributions, will be provided directly to both the employee and employer during the first four years of employment.
Scheme C: ‘Support to Employers’
- This scheme will cover additional employment in all sectors. All additional employment within a salary of Rs. 1 Lakh per month will be counted.
- The government will reimburse employers up to Rs. 3,000 per month for two years towards their EPFO contribution for each additional employee.
6. New Centrally Sponsored Scheme
- Nirmala Sitharaman also announced that a new centrally sponsored scheme will be introduced under the Prime Minister’s package for skilling and collaboration with state governments and industry.
- She further added that 20 Lakh students will be skilled over five years.
7. Internship Opportunities for 1 Crore Youth
- In a major effort to boost employment, the Finance Minister announced a comprehensive scheme to provide internship opportunities in top companies. This will be the fifth scheme under the Prime Minister’s package, according to the budget highlights.
- Union Finance Minister Nirmala Sitharaman stated that the scheme will offer internships in 500 top companies to 1 crore youth over five years. These internships will provide 12 months of exposure to real-life business environments, various professions, and employment opportunities.
- Under the scheme, an internship allowance of ₹5,000 per month, along with a one-time assistance of ₹6,000, will be provided to the youth. Companies are expected to cover the training costs and 10% of the internship expenses from their CSR funds.
8. Generating Employment Opportunities
The Finance Minister, In her Budget speech, announced a plan to create employment opportunities for about 4.1 crore youth over the next five years. To support this initiative, the government has allocated ₹2 lakh crore.
9. Working Women Hostel
- She announced that working women hostels will be set up. Higher participation of women in the workforce will be promoted through hostels creches.
- She also mentioned that our government will bring a National Cooperation Policy for the overall development.
10. One Month PF Contribution
- The Union government will incentivize 30 lakh youth entering the job market by contributing one month’s PF, the Finance Minister announced.
Conclusion
To sum it up, the Union Budget 2024 focuses on substantial investments in education, employment, and skilling, with a total allocation of ₹1.48 lakh crore. These measures aim to drive growth, improve job opportunities, and support the development of a skilled workforce over the next five years.
FAQs
1. What is the total allocation for employment and skilling in Budget 2024?
Finance Minister Nirmala Sitharaman has allocated ₹1.48 lakh crore for employment and skilling initiatives in Budget 2024.
2. What are the key focus areas of the government in the employment and skilling sector as per Budget 2024?
The budget prioritizes employment and skilling as a key focus area for the next five years. It aims to create 4.1 crore jobs through various initiatives and skill development programs.
3. What are the key measures to create employment opportunities announced in the budget?
The budget focuses on modernizing Industrial Training Institutes (ITIs) to align with industry needs, creating employment-linked incentives, and promoting entrepreneurship to generate job opportunities.
4. How will the budget impact employers?
Employers will benefit from incentives for hiring first-time employees and support for EPFO contributions, encouraging job creation.
