Budget 2024: FM Unveils Incentives, Schemes To Boost Job Creation

New Delhi: Finance Minister Nirmala Sitharaman while presenting Budget 2024 on Tuesday announced that the government will launch a scheme to provide internship opportunities to 1 crore youth in 500 top companies with Rs 5,000 per month as internship allowance and one-time assistance of Rs 6,000.

The companies are expected to bear the training cost and 10 percent of the internship cost from their corporate social responsibility (CSR) funds.

Sitharaman announced Prime Minister’s package of 5 schemes for 4.1 crore youth over 5 years with Rs 2 lakh crores outlay. Besides, a provision of Rs 1.48 lakh crores has been made this year for education, employment, and skilling.

“The government is allocating over Rs 3 lakh crore for schemes benefiting women, girls,” she said, adding that the government would set up women-specific skilling programmes to boost women’s participation in the workforce. India’s female labour force participation rate climbed to 24 per cent in Q2FY24.

The Finance Minister announced three new schemes that give employment-linked incentives for creation of jobs in manufacturing.

“Our government will implement the following three schemes for employment—linked incentive as part of the Prime Minister’s package — enrollment in the EPF, focus on recognition of first time employees, and support to employees and employers scheme,” she said.

Support for Employers

The “Support to Employers” scheme aims to promote additional employment across all sectors. Employers will receive reimbursement of up to Rs 3,000 per month for two years for EPF contributions for each additional employee earning up to Rs 1 lakh per month. This initiative is expected to create jobs for 1.5 million individuals.

The Budget offers loans up to ₹7.5 lakh with a guarantee from a government promoted Fund. It is expected to help 25,000 students every year. Besides, there is a provision of financial support for loans up to ₹10 lakh for higher education in domestic institutions.

Skilling Programme

20 lakh youth will be skilled over a 5-year period

1,000 Industrial Training Institutes will be upgraded in hub and spoke arrangements with outcome orientation.

Course content & design aligned as per skill needs of industry.