Sitharaman has taken leaf out of Congress manifesto, say party leaders; slam Union Budget for “missed opportunities”
XFormer Union Minister P. Chidambaram
NEW DELHI: Noting that there are "missed opportunities" in the Union Budget 2024-25 presented in Parliament on Tuesday, senior Congress leader P Chidambaram said Finance Minister Nirmala Sitharaman has "virtually adopted" the Employment-linked incentive (ELI) outlined in Congress manifesto for the general elections and also introduced Apprenticeship scheme.
In posts on X, Chidambaram, a former Finance Minister, welcomed the move the abolish the Angel Tax and said the Congress had demanded this and the Congress had also proposed it in its manifesto.
Chidambaram, who chaired the Congress manifesto committee, said he wishes that the the Finance Minister "had copied some other ideas in the Congress Manifesto". "I am glad to know that the Hon'ble FM has read the Congress Manifesto LS 2024 after the election results. I am happy she has virtually adopted the Employment-linked incentive (ELI) outlined on page 30 of the Congress Manifesto.
I am also happy that she has introduced the Apprenticeship scheme along with an allowance to every apprentice spelt out on page 11 of the Congress Manifesto. I wish the FM had copied some other ideas in the Congress Manifesto. I shall shortly list the missed opportunities," Chidambaram said. "I was pleased to hear that the FM will abolish the Angel Tax.
Congress has pleaded for the abolition for many years and most recently in the Congress Manifesto on page 31," he added. Congress leader Jairam Ramesh said the employment scheme was "designed to grab headlines rather than a programmatic guarantee."
"The Finance Minister has taken a leaf out of the INC's Nyay Patra 2024, with its internship program clearly modelled on the INC's proposed Apprenticeship Program that was called Pehli Naukri Pakki," Jairam Ramesh said in a post on X.
"However, in their trademark style, the scheme has been designed to grab headlines, with arbitrary targets (1 crore internships) rather than a programmatic guarantee for all diploma holders and graduates, like the Indian National Congress had envisioned," he added.
Union Finance Minister Nirmala Sitharaman, in her Budget speech in Lok Sabha, proposed creation of employment of about 4.1 crore youth over the next five years. Sitharaman said the government will implement three schemes for 'Employment Linked Incentive', as part of the Prime Minister's package.
"These will be based on enrolment in the EPFO, and focus on recognition of first-time employees, and support to employees and employers," she said.
She said Scheme A for First Timers will provide one-month wage to all persons newly entering the workforce in all formal sectors.
The direct benefit transfer of one-month salary in three instalments to first-time employees, as registered in the EPFO, will be up to Rs 15,000. The eligibility limit will be a salary of Rs one lakh per month.
The minister said the scheme is expected to benefit 210 lakh youth. The minister said that Scheme B for job creation in manufacturing will incentivize additional employment in the manufacturing sector, linked to the employment of first-time employees.
An incentive will be provided at specified scale directly both to the employee and the employer with respect to their EPFO contribution in the first 4 years of employment.
The scheme is expected to benefit 30 lakh youth entering employment, and their employers. The minister said that the employer-focussed Scheme C will cover additional employment in all sectors.
All additional employment within a salary of Rs 1 lakh per month will be counted. The government will reimburse to employers up to Rs 3,000 per month for two years towards their EPFO contribution for each additional employee.
The scheme is expected to incentivize additional employment of 50 lakh persons. The minister said the government will facilitate higher participation of women in the workforce through setting up of working women hostels in collaboration with industry, and establishing creches.
"In addition, the partnership will seek to organize women-specific skilling programmes, and promotion of market access for women SHG enterprises."
Sitharaman announced a new centrally sponsored scheme, as the 4th scheme under the Prime Minister's package, for skilling in collaboration with state governments and Industry.
She said 20 lakh youth will be skilled over a 5-year period, 1,000 Industrial Training Institutes will be upgraded in hub and spoke arrangements with outcome orientation.
Course content and design will be aligned to the skill needs of industry, and new courses will be introduced for emerging needs. Sitharaman said the Model Skill Loan Scheme will be revised to facilitate loans up to Rs 7.5 lakh with a guarantee from a government promoted Fund.
This measure is expected to help 25,000 students every year, she said. "For helping our youth who have not been eligible for any benefit under government schemes and policies, I am happy to announce a financial support for loans upto 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," she said. Sitharaman said that under the 5th scheme under the Prime Minister's package, the government will launch a comprehensive scheme for providing internship opportunities in 500 top companies to one crore youth in five years.
"They will gain exposure for 12 months to real-life business environment, varied professions and employment opportunities. An internship allowance of Rs 5,000 per month along with a one-time assistance of Rs 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," she added.