Union Budget 2024 focuses on skills, jobs, internships; Govt allocates Rs 1.48 lakh cr, Read here

Union Budget 2024: Finance Minister Nirmala Sitharaman announced that the Union Budget 2024-25 will allocate Rs 1.48 crore for education, employment and skilling in the country. In her Union Budget speech 2024, she said the government is now turning its attention towards “employment, skilling, medium and small enterprises (MSME) and middle class” for the next five years. 

In the interim budget released in February, the government allocated over Rs 73,000 crore to the Department of School Education and Literacy, representing the largest funding ever designated for this sector. This allocation reflects an increase from the revised estimates of Rs 72,473.80 crore from the previous financial year and exceeds last year’s budget of Rs 68,804.85 crore for the same department.

Area of Focus 

“The focus of the interim budget was on the poor, women, youth, and farmers. PM Garib Kalyan Anna Yojana was extended by 5 years, benefitting more than 80 crore people. With the budget now we are turning attention towards employment, skilling, MSME, and middle class.”

Employment and Skilling

Sitharaman announced three employment-linked schemes as part of the Modi government’s budget outlay for 2024-25.

The first scheme is based on the enrolment in the Employment Provident Fund Organisation, (EPFO) and recognition of first-time employees and support to employers. “The scheme will provide one month’s wage to first-time employees entering the workforce in formal sectors, up to Rs 15,000 in three installments. The eligibility limit will be a salary of Rs 1,00,000 per month. This scheme is set to benefit 2.10 lakh youth.”

The second scheme focuses on job creation in manufacturing, under which incentives will be provided to employees and employers in the first four years of employment. “The scheme will benefit 30 lakh youth entering employment.”

The third scheme will provide support to employers. “Support to employers will cover additional employment in all sectors within a salary of Rs 1,00,000 per month. The government will give Rs 3,000 per month to the EPFO. This is expected to support the additional employment of 50 lakh people,

New scheme for Skilling

Finance Minister also announced a new centrally sponsored program which she said will result in the skilling of 20 lakh youth over a period of five years.

“1,000 industry training institutes (ITI) will be encouraged in the hub and spoke arrangement. 

The new courses will be aligned with the needs of the industry. Model skill loans will be revised for loans up to Rs.7.5 lakh with a guarantee from a government-promoted fund expected to help 25,000 students every year.”