Union Budget: Rs 1.48 lakh crore allocated for education, employment, and skilling
Finance Minister Nirmala Sitharaman announces financial support for loans up to Rs 10 lakh for higher education in domestic institutions
Union Finance Minister Nirmala Sitharaman on Tuesday announced the Prime Minister’s package of five schemes for 4.1 crore youth over five years to facilitate employment, education, and skills, with a provision of ₹1.48 lakh crore. “This year we have made a provision of ₹1.48 lakh crores for education, employment and skilling…,” the minister said. This funding is expected to improve educational infrastructure, create job opportunities, and enhance skill development programmes across the country. While the central outlay for the sector is Rs 2 lakh crore, out of this, Rs 1.48 lakh crore has been specifically allocated for education, employment, and skilling.
The FM also proposed to revise the Model Skill Loan Scheme, which aims to assist 25,000 students annually; it will now allow loans of up to Rs 7.5 lakh. She also announced the distribution of e-vouchers for loans up to Rs 10 lakh for higher education in domestic institutions, which will benefit one lakh students each year; there will be an annual interest subvention of 3 per cent on the loan amount. The government has also unveiled a new centrally sponsored scheme aimed at training 20 lakh youth over the next five years.
1,000 ITIs to be upgraded; internships to one crore youth
To enhance skilling initiatives, 1,000 ITIs will be upgraded using the hub-and-spoke model to enhance skilling initiatives; their course content and design will be aligned to the skill needs of industries. Sitharaman said the new centrally-sponsored skilling scheme, in collaboration with states and industry, will train 20 lakh youth over five years. The FM said the government will provide incentives to 30 lakh youth entering the job market by providing one month’s Provident Fund contribution.
Those joining manufacturing jobs will get a defined scale incentive straight from their company within the first four years of work. This would help about 30 lakh youths and employers. The government would offer a one-month wage to all new workers in all formal industries in three instalments. Employees will receive a direct benefit transfer of up to Rs 15,000. This will apply to people with salaries of up to Rs 1 lakh per month. About 2.1 crore youngsters will be benefited by this scheme. The FM also announced that additional medical institutions will be established in Bihar.
The government will also provide internships to one crore youth, who will get Rs 5,000 as stipend and one time assistance of Rs 6,000. The companies will bear the cost from their CSR funds. Besides, working women hostels will be set up to promote women’s participation in the workforce. The Mahatma Gandhi National Rural Employment Guarantee (MGNREGA), which is already in force, aims to provide 100 days of wage employment in a particular fiscal year to at least one member of every household whose adult members seek manual work.
In the Union Budget 2023, the Centre had allocated Rs 1,12,898.97 crore to the education sector, marking the highest allocation ever granted to the Ministry of Education. Of this, Rs 68,804.85 crore was allocated to the school education department, while the higher education department received Rs 44,094.62 crore. In the Interim Budget 2024 speech, Sitharaman had announced the plan to establis more medical colleges and form a committee to oversee this initiative. She had also mentioned plans for the ‘upgradation of anganwadi centres.’