Budget 2024: Nirmala Sitharaman unveils ₹2 lakh crore package for youth; focus on jobs, skilling, education

Budget 2024: Union Finance Minister Nirmala Sitharaman, on Tuesday, July 22, announced the Prime Minister's package of five schemes to facilitate employment, education, and skills for youth with a central outlay of ₹2 lakh crores.

Presenting the Budget 2024-25 in the lower house of the Parliament, FM Sitharaman said, “I am happy to announce the Prime Minister's package of 5 schemes and initiatives to facilitate employment, skilling and other opportunities for 4.1 crore youth over five years with a central outlay of ₹2 lakh crores.”

“This year we have made a provision of ₹1.48 lakh crores for education, employment and skilling…,” the minister said.

Budget 2024: Educational support

Sitharaman proposed revising the Model Skill Loan Scheme to assist 25,000 students annually. Additionally, she announced the distribution of e-vouchers for loans up to Rs. 10 lakh for higher education in domestic institutions, benefiting one lakh students each year with an annual interest subvention of 3 per cent on the loan amount.

Budget 2024: Skilling and training announcements

The government also unveiled a new centrally sponsored scheme to train 20 lakh youth over the next five years. Nirmala Sitharaman announced during the Union Budget 2024-25 presentation that the model skilling loan scheme will be revised to allow loans of up to ₹7.5 lakh.

To enhance skilling initiatives, 1000 ITIs will be upgraded using the hub-and-spoke model. Additionally, the government will offer financial support for loans up to ₹10 lakh for higher education in domestic institutions.

Sitharaman emphasized that the new centrally-sponsored skilling scheme, in collaboration with states and industry, will train 20 lakh youth over five years.

Budget 2024: Employment package

The finance minister said it will launch three employment-linked schemes. Sitharaman said the government will incentivise 30 lakh youth entering the job market by providing one month's PF (provident fund) contribution.

She announced that working women's hostels will be established in the country to promote women's participation in the workforce.

Sitharaman said the government will provide funds to the private sector, domain experts, and others to develop climate-resilient seeds.

An existing scheme, MGNREGA (Mahatma Gandhi National Rural Employment Guarantee), aims to provide 100 days of wage employment in a particular fiscal year to at least one adult member of every household whose adult members seek manual work.