• UGI USER
  • Jul 29, 2024
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EMPLOYMENT AND THE 2024-25 UNION BUDGET

Why in the news?

  • The Union Budget for 2024-25 prioritized employment, with the term mentioned 23 times in the Finance Minister’s speech.
  • In response to rising unemployment and public dissatisfaction, Prime Minister Narendra Modi introduced several employment-focused schemes.
source: TheDC

Current State of Employment

  • India’s workforce in 2022-23 was approximately 56.5 crore, with 45% in agriculture, 11.4% in manufacturing, 28.9% in services, and 13% in construction. The official unemployment rate was 3.2%.
  • Despite these figures, underemployment and informal work are prevalent. The urban unemployment rate was 6.7% in March 2024, and youth unemployment stood at 10%.

Employment Schemes in the Budget

  • Incentives for Hiring: Schemes include wage subsidies for first-time employees and new hires in manufacturing, with incentives linked to EPFO registration.
  • Skill Development: Initiatives aim to upgrade Industrial Training Institutes and offer on-the-job skilling internships with a monthly allowance.
Union Budget of India

Definition

  • As per Article 112 of the Indian Constitution, the Union Budget is the annual financial statement of the Union Government for a fiscal year (1st April to 31st March).
  • It details estimated receipts and expenditures for the upcoming fiscal year.

Categories

  1. Budget Estimates: Forecasted receipts and expenditures for the upcoming fiscal year.
  2. Revised Estimates: Updated receipts and expenditures for the current fiscal year.
  3. Provisional Actuals: Finalized receipts and expenditures for the previous fiscal year.

Key Facts

  • Presentation Date: Since 2017-18, presented on February 1 each year.
  • Historical Practice: Before 2017-18, presented in the last week of February.
  • Railway Budget: Merged with the General Budget in 2017-18 based on the Bibek Debroy Committee’s recommendation.
  • Historical Separation: Separated from the General Budget in 1924 by the British on Acworth Committee’s recommendation.
  • Preparation: Managed by the Budget Division of the Department of Economic Affairs, Ministry of Finance.

Associated Article:

https://universalinstitutions.com/budget-2024/