SCHEMES: ECONOMY

NEWS: Five new schemes to aid job creation

 

WHAT’S IN THE NEWS?

Centre will implement three schemes for ‘employment-linked incentive’ as part of the Prime Minister’s package, says Finance Minister;the upgrade of a thousand Industrial Training Institutes and a scheme for internship opportunities to give focus to skill development

 

1. Budget Initiatives for Employment:

  • Proposed five schemes with a ₹2 lakh crore outlay to generate jobs.
  • Focus on employment-linked incentives including EPFO enrolment.
  • Scheme to provide one-month wage to newly employed workers in formal sectors

2. Specific Schemes Proposed:

  • First scheme: Direct benefit transfer of one-month salary to first-time EPFO registered employees.
  • Second scheme: Incentives for additional employment in the manufacturing sector.
  • Third scheme: Reimbursement of EPFO contributions for additional employees across sectors.
  • Fourth scheme: Skill development for 20 lakh youth over five years.
  • Fifth scheme: Internship opportunities for one crore youth in top companies.

3. Feedback and Criticism:

  • Concerns raised about the focus on skilling rather than direct job creation.
  • Calls for consistency and longer implementation periods for schemes to succeed.
  • Trade union critique regarding the perceived bias towards corporate ease of doing business.

Source: https://epaper.thehindu.com/ccidist-ws/th/th_delhi/issues/92169/OPS/GOID3K0LS.1+GFKD3MV95.1.html