Budget 2024: Big Takeaways for Educations and Jobs

New Delhi: Union finance minister, Nirmala Sitharaman released the union budget 2024 today. In her speech, she announced a series of significant measures in the Union Budget 2024, focusing on employment, skilling, and support for small and medium-sized enterprises (MSMEs) and the middle class.

The government has committed to a central outlay of ₹2 lakh crore under the Prime Minister’s package, targeting the creation of opportunities for 4.1 crore youth over the next five years.

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A major highlight of the budget is the allocation of ₹1.48 lakh crore specifically for education, employment, and skilling. This funding aims to revitalize the educational landscape, enhance job creation, and support skill development initiatives.

Employment Linked Incentives

The Finance Minister announced three key schemes under the ‘Employment Linked Incentive’ package designed to boost job creation and support for both employees and employers:

1. First Timers Scheme: This initiative provides a one-month wage benefit to all first-time employees in formal sectors. New workers registered with the Employees’ Provident Fund Organisation (EPFO) will receive a direct benefit transfer of up to ₹15,000 in three installments, provided their monthly salary does not exceed ₹1 lakh. This scheme is expected to benefit 2.1 crore youth.

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2. Job Creation in Manufacturing: To stimulate employment in the manufacturing sector, this scheme offers incentives tied to the employment of first-time workers. The government will provide financial incentives directly to both employees and employers based on their EPFO contributions during the initial four years of employment. It is anticipated that this scheme will support 30 lakh new workers and their employers.

3. Support to Employers: This scheme targets all sectors, providing reimbursement to employers for additional hires. For each new employee with a salary of up to ₹1 lakh per month, the government will cover up to ₹3,000 per month for two years toward their EPFO contributions. This initiative is expected to promote the employment of 50 lakh individuals.

Skilling Initiatives

The budget also outlines a robust strategy for skill development:

1. Skilling Programs: Over the next five years, the government aims to skill 20 lakh youth. This includes upgrading 1,000 Industrial Training Institutes with a focus on industry-relevant skills and introducing new courses to meet emerging needs.

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2. Skilling Loans: The Model Skill Loan Scheme will be revised to offer loans up to ₹7.5 lakh with a government-backed guarantee, helping 25,000 students annually. This measure is designed to support individuals pursuing vocational training.

3. Education Loans: For students who do not qualify for existing government benefits, financial support will be provided for loans up to ₹10 lakh for higher education in domestic institutions. E-vouchers will be issued to 1 lakh students annually, offering an annual interest subvention of 3%.

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Internship Opportunities

The budget introduces a comprehensive internship scheme aimed at providing 1 crore youth with real-world exposure. Interns will gain experience in 500 top companies over five years, receiving a monthly allowance of ₹5,000 and a one-time assistance of ₹6,000. Companies will bear training costs and contribute 10% of the internship expenses from their Corporate Social Responsibility (CSR) funds.