Image Source : PTI Finance Minister Nirmala Sitharaman
Finance Minister Nirmala Sitharaman announced several new initiatives and revisions for students and newly employed individuals in her Union Budget 2024 speech. The government will provide education loans up to Rs. 10 lakhs to students, with an annual education loan interest subvention of three per cent of the amount, capped at one lakh rupees. Additionally, the model skill loan scheme will be revised to support first-time workers in the formal sector and their employers. Furthermore, the minister announced an outlay of Rs.1.48 lakh crore for education, employment, and skilling. She said, ‘government is now turning its attention towards employment, skilling, medium and small enterprises and middle class for the next five years.
Employment and skilling
The minister announced job-beneficial schemes as part of the Union Budget 2024-25. The first scheme is based on enrolling in the Employees’ Provident Fund Organisation (EPFO), recognizing first-time employees, and providing support to employees. The second scheme focuses on creating jobs in the manufacturing sector, and the third will provide support to employers. Check details about these schemes below.
First Timer Scheme: This scheme will provide one month’s wage to first-time workers entering the workforce in the formal sector. Individuals will get up to Rs. 15,000 in three instalments. The eligibility limit will be a salary of Rs. 1 lakh. This scheme will benefit 2.10 lakh youth, as per the minister.
Manufacturing Jobs Assistance: Incentives of specified scale directly to employees and employers in the first 4 years of employment will be provided to employees entering manufacturing jobs. This will benefit 30 lakh youth and employers.
Support to employers: Additional employment in all sectors within a salary of 1 lakh/month will be provided at Rs. 3,000 per month for 2 years to cover EPFO charges. This will incentivise additional employment of up to 50 lakh persons.
The government will support women’s participation in the workforce by establishing working women’s hostels and daycares. The government also plans to initiate a women-specific training program.
20 lakh youth to be skilled
Moreover, the Minister announced a centrally sponsored programme for skill development in collaboration with states and industry, aiming to skill 20 lakh youth over 5 years. Additionally, the government will upgrade up to 1,000 ITIs in a hub and spoke model. The government will also revise the Model Skilling Loan Scheme to facilitate loans up to Rs. 7.5 lakh.
Government to provide up to 10 lakh loan for higher studies
While presenting the Union Budget 2024, the minster said, ‘for the youth who have not been able to benefit from any of the government schemes will now be able to get a loan up to Rs.10 lakh for studying in domestic institutions. E-vouchers for this purpose will be given to 1 lakh students every year for annual interest subversion of 3% of loan amount.’
Internship opportunities
The minister also mentioned that the youth will get internship opportunities in the top 500 companies in the next five years. ‘They will gain exposure for 12 months in real-line businesses. Internship allowances of Rs. 5,000 per month and one-month assistance of Rs. 6,000 will be paid. Companies will be expected to bear the training coast and 10 per cent of the internship cost, the minister added.’
