Finance Minister Nirmala Sitharaman is presenting her seventh consecutive Budget in Parliament today, Tuesday, July 23. The Budget for 2024-25 is viewed as the action plan for the Modi 3.0 government, outlining a roadmap for India’s development over the next five years.
In her record-breaking seventh Union Budget, Nirmala Sitharaman announced key employment schemes. She is also expected to announce an increase in the basic exemption limits under both the old and new tax regimes, providing significant relief for the middle class.
Prime Minister Narendra Modi stated yesterday that the Finance Minister would present a robust budget, emphasizing that the government’s guarantees will reach the common man. On the first day of the Monsoon Session of Parliament, Nirmala Sitharaman tabled the Economic Survey in Parliament.
Big Employment Announcements in Budget 2024
The Finance Minister announced a scheme to boost job creation in the manufacturing sector by linking it to the employment of first-time workers.
This scheme will offer incentives for EPFO contributions to both employees and employers for the first four years of employment. It is expected to benefit 3 million young people and will cover additional employment across all sectors. The government will reimburse employers up to ₹3,000 per month for two years for each additional employee’s EPFO contributions. The initiative aims to incentivize the employment of 5 million additional people.
Finance Minister Nirmala Sitharaman announced a new scheme providing one month’s wage to all individuals newly entering the workplace in formal sectors. First-time employees registered with the EPFO will receive a Direct Benefit Transfer of up to ₹15,000, paid in three installments. The scheme is available for employees with a salary of up to ₹1 lakh per month and is expected to benefit 2.1 million youth.
Additionally, a new centrally sponsored scheme will skill 2 million youth over five years. Around 1,000 ITIs will be upgraded with a hub-and-spoke model, with course content tailored to industry needs, particularly emerging sectors.
The Union Budget 2024-25 also proposes revising the Model Skill Loan Scheme to assist 25,000 students annually. E-vouchers for loans up to ₹10 lakh for higher education in domestic institutions will be provided directly to 1 lakh students each year, with a 3% annual interest subvention on the loan amount.