Finance Minister Nirmala Sitharaman presented the Budget 2024 today, July 23, 2024, marking the first budget of the BJP-led NDA after Prime Minister Narendra Modi began his third term. This year, all eyes were on the Central Government’s plan to meet the rising education sector demands. The budget emphasises skill-based learning, technological advancements, substantial reforms, and increased investments in school education.
From addressing infrastructural needs to enhancing capabilities, the budget promises to shape a more inclusive and robust educational system. Experts and educators are optimistic that the government will prioritise education spending and implement policies fostering innovation, accessibility, and quality in schools.
Employment Linked Incentive Schemes
The Finance Minister announced three schemes under the Prime Minister’s package to boost employment and skilling through ‘Employment Linked Incentives’. These schemes focus on recognising first-time employees and providing support to both employees and employers:
Scheme 1: ‘First Timers’
- Provides one month’s wage to all new formal sector employees.
- Direct benefit transfer of one month’s salary, in three instalments, up to ₹15,000.
- Eligibility for employees earning up to ₹1 lakh per month.
Scheme 2: ‘Job Creation in Manufacturing’
- Incentivises additional employment in manufacturing linked to first-time employees.
- Provides incentives for EPFO contributions in the first four years of employment.
Scheme 3: ‘Support to Employers’
- Covers additional employment in all sectors.
- The government reimburses employers up to ₹3,000 per month for two years for each additional employee earning up to ₹1 lakh per month.
Key Highlights of the Education Budget 2024
Total Allocation: ₹1.48 Lakh Crore
The budget allocation for education, employment, and skilling has increased by 30% to ₹1.48 lakh crore. This significant investment aims to meet the growing demands of the sector.
Education Loans and E-Vouchers
- Financial support for loans up to ₹10 lakh for higher education in domestic institutions.
- E-vouchers are issued to 1 lakh students annually with a 3% interest subvention.
Skilling and Training Initiatives
- Upgrading 1,000 Industrial Training Institutes (ITIs) using a hub-and-spoke model, aligning course content with industry needs.
- We revised the Model Skill Loan Scheme to offer loans up to ₹7.5 lakh with a government-backed guarantee for 25,000 students annually.
- Skilling 20 lakh youths over the next five years.
Internship Opportunities
A new internship scheme will provide opportunities for one crore youths in over 500 top firms, offering 12-month exposure to real-life business environments.
Additional Announcements
Support for Working Women
Plans to set up working women’s hostels to promote higher participation of women in the workforce through supportive facilities like hostels and crèches.
National Cooperation Policy
The announcement of a National Cooperation Policy aimed at overall development.
