Union Budget 2019-20: Prime Minister Narendra Modi has made his priorities clear by setting up two cabinet committees on investment and jobs under his direct supervision.
Skill Development Schemes: Prime Minister Narendra Modi’s government which has been grappling with the opposition’s charge of jobless growth is set to allocate more funds on those schemes that will help in employment generation. Immediately after taking the charge, Prime Minister Modi has already made his priorities clear by setting up two cabinet committees on investment and job creation under his direct supervision.
In its first term, Prime Minister Narendra Modi had created a separate ministry for skill development. He was aware that without imparting new and more relevant skills to the youth, it will be difficult to absorb them in job market that has been moving towards more specialised work profiles. However, unlike his entrepreneur development scheme through unsecured Mudra loans, skill development scheme could not become a shining example of his first term.
A recently released data of a survey conducted by National Sample Survey Organisation (NSSO), has confirmed that unemployment rate was indeed at an all time high in more than four decades in the immediate wake of twin shocks of note ban and implementation of GST in 2016-17.
The Union government had spent Rs 2702 crore in 2017-18 on its jobs and skill development schemes that fall in the category of centrally sponsored schemes. These schemes are jointly funded by the Centre and states with the majority of expenditure being incurred by the Union government.
Next year, Prime Minister Modi increased the allocation by 80% to Rs 4,864 crores. According to the latest information given in this year’s interim budget, the Union government has spent Rs 6,830 crore on skill development in 2018-19 as per the revised estimates. This is 2.5 times more money than the fund spent by the Union government in 2017-18.
In this year’s interim budget, former finance minister Piyush Goyal had increased this allocation by another 10% to Rs 7,510 crore. It shows the importance Modi government attaches to skill development and job creation.
Experts believe that given the urgency on the employment front, finance minister Nirmala Sitharaman is likely to further increase the allocation for skill development schemes in her maiden budget.