What’s in Budget for youth? Job schemes, education, skilling, and more

The Union Budget for 2024-25 has set aside Rs 2 lakh crore for five schemes aimed at creating jobs and providing education and skilling to 4.1 crore youth in the country.

Presenting the Budget in the Lok Sabha, Finance Minister Nirmala Sitharaman said on Tuesday (July 23): “I am happy to announce the Prime Minister’s package of five schemes and initiatives to facilitate employment, skilling and other opportunities for 4.1 crore youth over five years with a central outlay of Rs 2 lakh crores.”

“This year, we have made a provision of Rs 1.48 lakh crores for education, employment and skilling,” Sitharaman added.

Here are the five schemes the youth is expected to benefit from:

Three employment-linked schemes

The government will launch three employment-linked schemes, based on enrolment in Employees’ Provident Fund Organization (EPFO), Sitharaman said.

“Our government will implement three schemes for employment-linked incentives,” she said.

About Scheme A, she said it will provide one month’s wage to those entering the workforce in all sectors.

Scheme B, she said, will incentivise additional employment into the manufacturing sector linked to the employment of first-time employees.

“An incentive will be provided at specified scale directly to the employee and employer with respect to the EPFO contribution in the first four years of employment. This scheme is expected to benefit 30 lakh youth... and their employers,” the minister said.

Sitharaman said Scheme C will cover additional employment in all sectors.

“All additional employment within a salary of Rs 1 lakh per month will be counted,” she said, adding that the government will reimburse employers up to Rs 3,000 per month for two years towards the EFPO contribution to each additional employee.

The scheme is expected to incentivise additional employment of 50 lakh people.

Education support

The government will provide financial support for loans up to Rs 10 lakh for higher education in domestic institutions, Sitharaman announced.

She said e-vouchers for this purpose will be given directly to one lakh students every year with interest subvention of 3 per cent of the loan amount.

“For helping our youth who have not been eligible for any benefit under government schemes and policies, the government will provide financial support for loans up to Rs 10 lakh for higher education in domestic institutions. E-vouchers for this purpose will be given directly to one lakh students every year with interest subvention of 3 per cent of the loan amount,” Sitharaman said.

Sitharaman also proposed revising the Model Skill Loan Scheme to assist 25,000 students annually. “The Model Skill Loan Scheme will be revised to facilitate loans up to RS 7.5 lakh with a guarantee from government promoted fund…This measure is expected to help 25,000 students every year,” she added.

Skilling and training

Sitharaman also announced a new centrally-sponsored scheme for skilling 20 lakh youth over the next five years.

“I am happy to announce a new centrally sponsored scheme for skill development in which 20 lakh youth will be skilled over period of 5 years,” she said.

Upgrading 1,000 Industrial Training Institutes (ITIs) in hub and spoke model, aligning course content with skill needs of industry, and revision of model skill loan scheme were among the measures announced for Skill Development sector.

She added, “1,000 ITIs will be upgraded in hub and spoke model, course content and design will be aligned to the skill needs of industry and new courses will be introduced for emerging needs.

Internship scheme

Sitharaman also announced an internship scheme that will supposedly benefit one crore youth over five years. She said internships will be provided to youth in the top 500 companies.

“The government will launch a comprehensive scheme to provide internship opportunities in top 500 companies to one crore youths in five years,” Sitharaman said.

She explained that youth will gain exposure for 12 months in real-life business environments, different professions, and get employment opportunities.

“An internship allowance of Rs 5,000 will be provided per month, whereas one-time assistance of ₹6,000 will be given,” Sitharaman added.

She said companies will bear the training costs and 10 per cent of the internship costs from CSR funds.

(With agency inputs)