New Delhi: Reflecting the Indian government's resolve to become a $5 trillion economy capable of withstanding global challenges, one of the standout features in the Union Budget 2024-2025 is the robust emphasis on creating employment opportunities — encouraging the private sector in conjunction with governmental efforts to enhance job prospects.
Finance Minister Nirmala Sitharaman has unveiled several schemes aimed at creating substantial employment and skilling opportunities. This ambitious package is set to benefit 4.1 crore youth over the next five years, backed by a central outlay of Rs 2 lakh crore.
Focus on employment
The Budget has allocated Rs 1.48 lakh crore specifically for education, employment, and skilling, underscoring the government's commitment to these vital areas. The three Employment-Linked Incentive schemes represent a pivotal move towards fostering collective growth and prosperity, as they are designed to directly link incentives with employment generation.
One scheme provides a one-month wage upon joining the formal workforce, supported by a direct benefit transfer (DBT) equivalent to one month's salary (up to Rs 15,000) disbursed in three installments. With a salary cap of Rs 1 lakh per month, this scheme aims to support 2.1 crore youth entering the workforce for the first time.
A centrally-sponsored scheme under Prime Minister Narendra Modi's package will skill 20 lakh youth over the next five years. Furthermore, financial support for loans up to Rs 10 lakh for higher education in domestic institutions is announced, opening new avenues for our youth.
Another scheme under the Prime Minister's package is a strategic initiative to enhance youth employability and skill development by offering internships in 500 top companies to 1 crore youth over five years. This program provides 12 months of real-life business exposure, with an internship allowance of Rs 5,000 per month and a one-time assistance of Rs 6,000.
The budget has also allocated as much as Rs 3 lakh crore in programs that will enable more women to enter the workforce and contribute to the country’s inclusive development aligned with the ‘Viksit Bharat’ goal.
Fiscal consolidation
The allocated capital expenditure of Rs 11.1 lakh crore, or 3.4 per cent of GDP, represents the highest investment in infrastructure in the past 26 years, underscoring the government's commitment to this sector. Fiscal consolidation has been a consistent theme over the past 10 years and continues with this budget. The fiscal deficit is projected to decrease to 4.9 per cent in FY25, down from 5.1 per cent in the interim budget, with further reduction planned for the following year. Similarly, a robust allocation of Rs 5.2 lakh crore has been made for agriculture and allied sectors to enhance the earnings of farmers.
‘Aatmanirbharta’ (self-reliance)
The Union Budget of 2024-25 has also retained an allocation of Rs 6.22 lakh crore for the Ministry of Defence (MoD), which is the highest among the ministries. The allocation is aimed to promote ‘Aatmanirbharta’ in Defense technology and manufacturing and equip the armed forces with modern weapons/platforms along with the creation of job opportunities for the youth.
The government has underlined nine thrust areas: Productivity and resilience in Agriculture, Employment and Skilling, Inclusive Human Resource Development and Social Justice, Manufacturing and Services, Urban Development, Energy Security, Infrastructure Innovation, Research and Development and Next Generation Reforms.
