Nirmala Sitharaman works up jobs in Budget after poll shocker
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Budget unveils schemes to spur job creation in private sector
By Manish Anand
New Delhi, July 23: Union Minister for Finance in her Budget proposals made it clear that job creation is the top priority of the government. Prime Minister Narendra Modi-led Bharatiya Janata Party (BJP) was stunned with the Lok Sabha poll outcome that left the ruling party reliant on Janata Dal (United) and Telugu Desam Party.
Sitharaman is banking on the private sector to create jobs. She seeks to dole out incentives through subsidies to encourage creation of jobs in the private sector.
Sitharaman gave a booster to the ‘PM Employment Linked Incentive Scheme’ in the Budget. “The government will provide ₹15,000 to each first-term employee, payable in three instalments. The employee can have a salary of up to ₹one lakh annually,” said Sitharaman in the Budget speech on Tuesday in the Lok Sabha.
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In the event the first-term employee quits his job, the employer will be liable to refund the ₹15,000 subsidy. “The beneficiary employee after getting the first instalment will have to undergo an online financial literacy course,” said Sitharaman in a post-Budget press conference at the National Media Centre.
The government will capture the data of the first-term employee through the EPFO mapping.
Sitharaman said that the scheme is expected to benefit 2.10 crore youth. The minister also rolled out incentive scheme to spur job creation in the manufacturing sector.
“An incentive will be provided at specified scale directly both to the employee and the employer with respect to their EPFO contribution in the first four years of employment. The scheme is expected to benefit 30 lakh youth entering employment, and their employers,” said Sitharaman.
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Furthermore, Sitharaman said that the third component of the scheme will focus on employers and cover additional employment in all sectors. “All additional employment within a salary of ₹1 lakh per month will be counted. The government will reimburse to employers up to ₹3,000 per month for two years towards their EPFO contribution for each additional employee,” added Sitharaman.
She said that the scheme is expected to incentivize additional employment of 50 lakh persons. The three components of the scheme will aim to create 2.90 crore jobs in the country.
Unveiling the fourth scheme, Sitharaman said that this will focus on skilling of the youth in collaboration with state governments and Industry. She said that 20 lakh youth will be skilled over a five-year period.
Additionally, the minister said that 1,000 Industrial Training Institutes will be upgraded in hub and spoke arrangements with outcome orientation.
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Besides, the fifth scheme under the PM incentive programme will launch a comprehensive scheme for providing internship opportunities in 500 top companies to one crore youth in five years.
“Interns will gain exposure for 12 months to real-life business environment, varied professions and employment opportunities. An internship allowance of ₹ 5,000 per month along with one-time assistance of ₹6,000 will be provided,” said Sitharaman.
Companies will be expected to bear the training cost and 10 per cent of the internship cost from their CSR funds.
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