Budget 2014: Focus on investment not on employment

The employment push is not visible in this budget. The focus is more on investment which largely benefits the large corporate houses. T Muralidharan chairman & managing director, TMI e2E Academy, in his post-budget reaction to TimesJobs.com Bureau said that the focus is more on investments in jobs sector but how will these jobs be created?. He highlights the good and bad of the Budget 2014 for our readers. Where it scored? FM acknowledged that migration is a reality in the context of creating 100 smart cities. This means that migration is not a “bad” word any more in skill industry. “ Tourism will be a focus industry for employment creation. Rs 500 crores have been allocated to promote tourism on five themes. This is a good sign for launching course in this domain. “ Multi skill focus and the need to integrate employment and entrepreneurship was mentioned. This is big departure from the current policy of insisting that all skill development should lead to employment and employment is the main measure of success. Self-employment based skill courses will get more attention and support from the skill ministry. “ On Aajeevika program run by the Ministry of rural development, he talked of concessional loans at 4% for funding local entrepreneurship. This is a great sign. “ Revamping of apprenticeship program was announced. It will include MSME because this where bulk of new employment is created. Hopefully the Apprentice scheme for MSME will be game changer for both MSME and the fresh graduates. “ The MSME sector finally got a lot of importance in this budget with a 10,000 crore fund, a revised definition of MSME, a recognition that the service industry MSME are as important as manufacturing MAMEs. “ Employment exchanges will be revamped for career and job counselling. This is not a new idea. But the implementation is difficult since the jobs are in the private sector about which the current employees know very little. Privatisation is the only way. “ Young leaders program with a budget of 100 crore has been created. What it lacked? Not spell out in detail about the role, budget of the new skill ministry. “ Not commented on the STAR program. Does this mean that since the Rs 1000 crore was sanctioned in the interim budget for 2014-15, the scheme will continue? “ There was a big demand to scrap service tax for skill programs of all types. Today the exemption is subject to certain conditions. Because the service tax is paid by the unemployed youth’s parents. “ There were expectations of a big jump in the skill budgets. Some people talked about five times growth. This was not spelt out. “ The need to increase minimum wages to make the compensation fair and in alignment with the food inflation was not even attempted. This is a big disappointment. The focus seems to be on skilling and on ramping up the Manufacturing and Infrastructure industry. The employment creation per crore of investment is many times bigger in service industry. He did not spell out how employment will be created in the economy. Skilling increases supply of manpower. If the demand is not there, this effort will be counterproductive. The excess supply will impact the compensation which is already happening.
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