Budget 2024-25: Transforming Education, Employment & Skilling Sector

The Union Budget 2024-25 has introduced an ambitious Prime Minister's package featuring five major schemes designed to enhance employment and skill development. Over the next five years, these initiatives aim to support 4.1 crore young people, with a total allocation of Rs. 2 lakh crore. Further, the budget has specifically allocated Rs. 1.48 lakh crore to transform the education, employment and skilling sector. After the Finance Minister Smt. Nirmala Sitharaman presented the Budget in Parliament, Minister of Education Shri Dharmendra Pradhan emphasised that the government's priorities are education, skill development, job creation, research and innovation. He described these priorities as a people-centric, growth-oriented, inclusive and progressive approach. He also highlighted that school and higher education, along with employment and skill development, are of paramount importance. These factors will play a crucial role in guiding India towards becoming a 'Viksit Bharat' by 2047.

School Education: The National Education Policy (NEP) 2020 emphasises that education should foster core values and principles through a range of skills. This includes foundational skills like literacy and numeracy, as well as higher-order skills such as critical thinking and problem-solving. Additionally, it highlights the importance of social and emotional skills, including cultural awareness, empathy, teamwork, leadership and communication. The policy framework underscores the need to establish a strong foundation for students at the school level, which is crucial for their lifelong development.

Recognising the crucial role of school education, the Government of India has allocated a record Rs. 73,498 crore to the Department of School Education and Literacy in this budget. This represents an increase of Rs. 12,024 crore (19.56%) compared to the 2023-24 annual budget. Autonomous bodies such as the Kendriya Vidyalaya Sangathan (KVS) and Navodaya Vidyalaya Samiti (NVS) have also received their highest-ever allocations, with Rs. 9,302 crore for KVS and Rs. 5,800 crore for NVS. This marks an increase of Rs. 802 crore for KVS and Rs. 330 crore for NVS. Additionally, funding for flagship schemes like SAMAGRA SHIKSHA (Rs. 4,500 crore), PM POSHAN (Rs. 2,467 crore) and PM-SHRI (Rs. 3,250 crore) has been increased compared to the previous fiscal year.

Higher Education: India's higher education sector is undergoing a significant transformation with the implementation of the National Education Policy 2020. The policy emphasises flexible, holistic and multidisciplinary education, promoting inclusivity, equity, autonomy and accountability. It aims to address national needs and align with international standards by introducing a flexible curriculum, credit system, multiple entry and exit points, skill development, vocational training, research, innovation and the use of mother tongues and technology in teaching, learning and evaluation. The goal is to increase the Gross Enrollment Ratio (GER) to 50% by 2035, creating approximately 5 crore new seats in higher education. To streamline these efforts, the policy proposes the establishment of the Higher Education Commission of India (HECI), National Research Foundation (NRF), National Education Technology Forum (NETF) and Academic Bank of Credits (ABC).

In light of higher education reforms, the Department of Higher Education has been allocated Rs. 47,619.77 crore in the 2024-25 budget. This represents an increase of Rs. 3,525.15 crore (8%) compared to the 2023-24 fiscal year. Central Universities have received the largest allocation of Rs. 15,928 crore, up by Rs. 4,314.03 crore from the previous budget. Indian Institutes of Technology (IITs) have been allocated Rs. 10,202.5 crore, an increase of Rs. 841 crore, while National Institutes of Technology (NITs) have been given Rs. 5,040 crore, up by Rs. 219.40 crore. Additionally, Indian Institutes of Science Education and Research (IISERs) have been allocated Rs. 1,540 crore, the Indian Institute of Science (IISc) Rs. 857 crore and Deemed Universities Rs. 596 crore.

Major schemes of higher education such as Pradhan Mantri Uchchatar Shiksha Abhiyan (PM-USHA) [erstwhile Rashtriya Uchchatar Shiksha Abhiyan (RUSA)] have been allocated Rs. 1814.94 Crore, followed by Institutions of Eminence (IoE, Rs. 1800 Crore), Pradhan Mantri Uchhatar Shiksha Protsahan Yojna (PM-USP, Rs. 1558 Crore), National Apprenticeship Training Scheme (NATS, Rs. 600 Crore), National Mission in Education through ICT (NMEICT, Rs. 480 Crore), Multidisciplinary Education and Research Improvement in Technical Education (MERITE-EAP, Rs. 200 Crore) and Establishment of 3 Centres of Excellence (CoEs) in Artificial Intelligence (Rs. 255 Crore) respectively.

Further, the Govt. of India has made a provision to provide financial support through loan up to 10 Lakh for higher education. The loan amount will directly be given to one lakh students annually through e-vouchers along with an interest subsidy of 3% on the loan amount. UGC Chairman Prof. M. Jagadesh Kumar expressed that the UGC will continue to work in synergy with all the stakeholders to ensure the efficient use of funds, furthering its mission of advancing standards of higher education across the country.

Employment Opportunities: The Finance Minister has announced implementation of three schemes for 'Employment Linked Incentive' as a part of the Prime Minister's package. These schemes will be based on registration in the Employees' Provident Fund Organisation (EPFO) and will mainly focus on recognising first-time employees and providing assistance to both employees and employers. The schemes are:

Scheme I is associated with 'First Timers': This scheme, aimed at benefiting 2.1 crore youth over the next two years, will provide a one-month wage subsidy to individuals entering the workforce for the first time in all formal sectors. Eligible employees must have a monthly salary of up to Rs. 1 lakh. The subsidy, provided through direct benefit transfer in three installments of up to Rs. 15,000, will be available to first-time employees registered with EPFO. This support is designed to assist both employees and employers by easing the hiring of newcomers and aiding their adjustment period before they become fully productive. Employees must complete a mandatory online financial literacy course before receiving the second installment. Additionally, if the employment of a first-time hire is terminated within 12 months, the employer will be required to refund the subsidy.

Scheme II is related to job creation in manufacturing: Designed to significantly increase the hiring of first-time employees in the manufacturing sector, this scheme will provide incentives for additional employment, benefiting an estimated 30 lakh young people entering the workforce and their employers. The incentive, linked to EPFO contributions, will be granted directly to both the employee and employer over the first four years of employment. If the employment of a first-time hire is terminated within 12 months of recruitment, the employer will be required to repay the subsidy.

Scheme III is associated with support for employers: This employer-focused scheme will cover additional hires across all sectors for salaries up to Rs. 1 lakh per month. The government will reimburse employers up to Rs. 3,000 per month for two years for EPFO contributions related to each additional employee.

Skill Opportunities: A new centrally sponsored scheme will be introduced under the Prime Minister's Package for Skilling in collaboration with state governments and industry. The scheme will cover 20 lakh students, who will be provided skill training over a period of five years.

Modernisation of 1000 Industrial Training Institutes (ITIs): In order to focus on skill development, 1000 Industrial Training Institutes in Hub-and-Spoke-Model will be upgraded and modernised with an allocation of

Rs. 60,000 in collaboration with state governments and industry. The budget for this project will be shared by the Govt. of India (Rs. 30,000 crore), by state governments (Rs. 20,000 crore) and by industry (Rs. 10,000 crore). These ITIs will align course content with skill requirements of industry to train 20 Lakh students over the next five years under Prime Minister's Package for Skilling.

Revised Model Loan Scheme: The government has introduced a revamped 'model skill loan scheme' to improve access to skill development courses by significantly increasing the maximum loan limit from Rs 1.5 lakh to Rs 7.5 lakh. Originally launched in 2015, the previous scheme experienced limited uptake due to inadequate loan limits. Announced in the Union Budget 2024-2025, the updated scheme is designed to assist 25,000 students annually and now includes Non-Banking Financial Companies (NBFCs), NBFC-MFIs (micro-finance institutions), and small finance banks as eligible lenders. The revised scheme will offer access to a broader range of skill courses, including those not aligned with the National Skill Qualification Framework (NSQF), and will feature non-NSQF courses available on the Skill India Digital Hub platform.

Internship in Top Companies: A comprehensive scheme to provide paid internships to 1 crore youth in top companies has also been launched in order to boost employment opportunities. Finance Minister Smt. Nirmala Sitharaman mentioned that the scheme will provide internship opportunities in 500 top companies to 1 crore youth over a period of five years. These paid internships will provide 12 months exposure to the real-life business atmospheres, professions and employment. An internship allowance of Rs. 5000/- per month along with a one-time assistance of Rs. 6000/- will be provided to the youth. It has been expected from the companies that they will cover the training costs and 10% of the internship expenses from their fund of Corporate Social Responsibility (CSR). Further, it has also been decided that the government will incentivise 30 Lakh youth entering the job market by contributing one month's Provident Fund (PF).

Women Empowerment through Participation in Workforce: In order to increase participation of women in the workforce, working women's hostels and creches shall be established and women-centric skill programmes are to be introduced through partnerships and collaborations for better training.

Overall, the Annual Budget of India 2024-25 focuses on substantial investments in education, employment and skilling, which is highly essential to transform the education system as per the national as well as international scenario and to boost employment and skill opportunities as per the need of the market. The focus of the government on these strategic areas aim to create a robust ecosystem which will address these issues by equipping the youth with education, skilling and employment opportunities. However, the most important aspect is its implementation through mapping and reviewing the exact status from time to time in coordination with various stakeholders such as central, state governments and industry at the ground level. This people centric, inclusive, progressive and sustainable approach will pave the way for Viksit Bharat by 2047.

(The Author is Assistant Professor (Stage III), Department of Mass Communication, Central University of Jharkhand, Ranchi. Feeback on this article can be sent to feedback.employmentnews@gmail.com).

Views expressed are personal.