Union Budget and Economic Survey on Employment

Union Budget 2012 – 2013 :

Union Budget Objectives :

The objectives include focus on

  • Domestic demand driven growth recovery
  • Create conditions for rapid revival of high growth in private investment
  • Address and improve supply side economy
  • Intervene decisively to address the problem of malnutrition.
  • Expedite coordinated implementation of decisions of improved delivery systems, governance and transparency and address the problem of black money and corruption in public life.

Skill Development :

Rupee 1000 crore being allocated to National Skill Development Fund. At the end of 10 years, the projects being implemented under it are likely to train 62 million persons and augment vocational training capacity by 12.5 million per year in the private sector.

A separate Credit Guarantee Fund is to be set up to improve the flow of institutional credit for skill development, to benefit youth in acquiring market – oriented skills.

A new scheme called “Himmat” introduced in Jammu & Kashmir. It aims to provide skill training to 100,000 youth in the next five years. The entire cost of this program will be met by the Centre.

Rural Employment and Women Empowerment :

For providing jobs to Below Poverty Line house holds in rural areas, the allocation under MG – NREGA has been kept at Rupee 33,000 crore representing a reduction of 17.5%. The reduction comes against the backdrop of less expenditure in last financial year and demands by Agriculture Ministry for a moratorium during agriculture season on the ground that it deprived availability of labour.

Swarna Jayanti Gram Swarojgar Yojana has been restructured into National Rural Livelihoods Mission (NRLM) to provide self – employment opportunities. A sum of Rupee 3915 crores has been allocated for NRLM.

The Budget provides Rupee 200 crores to enlarge the corpus of Rupee 300 crores to Women’s Self Health Group’s Development Fund Establishment of Bharat Livelihoods Foundation of India, to support and scale up civil society initiatives especially in tribal regions covering around 117 districts.

The centre has decided to provide loans upto Rupee 3.00 lakh to women SHGs at a subsidised rate of 7% and an additional subsidy of 3% to those who return it timely. In the first phase 600 blocks of 150 districts will be covered.

An allocation of Rs. 750 crore has been made for Rajiv Gandhi Scheme for Empowerment of Adolescent Girls to address the nutritional needs and education and skill development initiatives for self development for girls in age group of 11 to 18 years.

The government has approved a policy which requires ministries and Central PSUs to make a minimum of 20% of their annual purchases from micro, small and medium enterprises ( MSMEs ) to promote market access to the sector which is a major employer in the country.

Economic Survey 2011 – 2012 :

India Remains a Fastest Growing Economy :

Despite the low growth figure of 6.9%, India remains one of the fastest growing economies of the world as all major countries including the fast growing emerging economies are seeing a significant slowdown, says Economic Survey.

Economic Slowdown :

Slowdown in Indian economy largely due to global factors, as also because of domestic factors like tightening of monetary policy, high inflation and slower investment and industrial activities.

Economic Survey Inflation :

Pegs inflation at 6.5 – 7% high, but showing clear signs of slowdown by the year – end; Whole – sale food inflation down to 1.6 percent in January 2012 from 20.2 per cent in February 2010.

Economic Survey Employment :

India has been able to withstand the adverse impact of the global crisis and general employment since 2009. The country saw more than nine lakhs jobs being added in the one year period ended September 2011, and Information Technology ( IT ) and Information Technology Enabled Services ( ITES ) Sectors accounted about 8 lakh of those new jobs created.

Economic Survey MG – NREGA :

The coverage of Mahatma Gandhi – National Rural Employment Guarantee Act increased to 5.49 crore households during 2010 – 2011. To strength transparency & accountability in its implementation, the Government has initiated a service delivery project Information and Communication Technology ( ICT ) and biometrics related works by the MG – NREGA on Public Private Partnership basis.

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