Budget 2024: Internship scheme, incentive for first-time employees- All top government schemes announced

Union Budget 2024: Finance Minister Nirmala Sitharaman presented the budget for fiscal year 2024-25 on Tuesday (Jul 23). The major focus of the entire budget this year was on job creation and how to ease the process of embracing more people into an organised workforce.

Given this, Sitharaman announced three schemes under employment-linked incentives and said the government will allocate Rs 2 lakh crore for job creation over the next five years.

The Finance Minister announceda Direct Benefit Transfer (DBT) of 1 month's salary in 3 instalments of up to Rs 15,000 to first-time employees registered in EPFO.

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The government will also create jobs in the manufacturing sector by providing incentives, as per Sitharaman’s speech. The manufacturing incentives will be provided directly to both employees and employers as per their EPFO contribution in the first four years of employment.

Under this scheme, the government will provide reimbursement to employers up to 3,000 per month for 2 years towards their EPFO contribution for each additional employee.

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Presenting the Budget in the Lok Sabha, Nirmala Sitharaman also announced ₹1.48 lakh crore for education, employment and skills in the country.

She said the Budget 2024 focuses on employment, skilling, MSMEs and the middle class. “As mentioned in interim budget, we need to focus on the poor, women, youth and farmers,” Sitharaman said.

In a major step towards increasing the skilled workforce, the government announces the launch of a scheme to provide internship opportunities to 1 crore youth in 500 top companies with a Rs 5,000 per month internship allowance and one-time assistance of Rs 6,000.

Sitharaman announced, "An internship allowance of ` 5,000 per month along with a one-time assistance of ` 6,000 will be provided. Companies will be expected to bear the training cost and 10 per cent of the internship cost from their CSR funds."

Sitharaman also emphasised on including more women into workforce through setting up working women hostels.

"We will facilitate higher participation of women in the workforce through setting up of working women hostels in collaboration with industry, and establishing creches," said Finance Minister.

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In addition, the partnership will seek to organize women-specific skilling programmes and promotion of market access for women SHG enterprises.

In a new-centrally sponsored scheme, as part of the 4th scheme under the Prime Minister's package, the Finance Minister announced a skilling programme in collaboration with state governments and Industry.

"20 lakh youth will be skilled over a 5-year period. 1,000 Industrial Training Institutes will be upgraded in the hub and spoke arrangements with outcome orientation. Course content and design will be aligned to the skill needs of the industry, and new courses will be introduced for emerging needs," said Sitharaman.

To improve the socio-economic condition of tribal communities, the government will launch the Pradhan Mantri Janjatiya Unnat Gram Abhiyan by adopting saturation coverage for tribal families in tribal-majority villages and aspirational districts. This will cover 63,000 villages benefitting 5 crore tribal people, as per the Finance Minister's speech.

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In line with the announcement in the interim budget, PM Surya Ghar Muft Bijli Yojana has been launched to install rooftop solar plants to enable 1 crore households to obtain free electricity up to 300 units every month.

The Model Skill Loan Scheme will be revised to facilitate loans up to Rs 7.5 lakh with a guarantee fromgovernment-promoted Fund. This measure is expected to help 25,000 students every year.

To help our youth who have not been eligible for any benefit under government schemes and policies, the government announced 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 1 lakh students every year for annual interest subvention of 3 per cent of the loan amount.

(With inputs from agencies)