As Union Finance Minister Nirmala Sitharaman unveiled the first Budget of the third Narendra Modi government, the Congress party quickly drew parallels between the budget’s provisions and promises made in its Lok Sabha election manifesto.
Internship Scheme and “Pehli Naukri Pakki”
One of the most notable announcements was the government’s plan to offer internships to 1 crore youth in 500 top companies over the next five years. This scheme, along with three employment-linked schemes, caught the Congress’s attention for its similarities to their own manifesto promises.
The Congress had proposed a “Right to Apprenticeship Programme,” famously branded as “pehli naukri pakki” (guaranteed first job). This program aimed to provide a one-year apprenticeship with either a private or public sector company to every diploma holder or college graduate under the age of 25, ensuring them an annual income of Rs 1 lakh.
According to the Congress, this initiative would impart skills, enhance employability, and open doors to full-time job opportunities for millions of young people.
Reacting to Sitharaman’s announcement, Congress communications head Jairam Ramesh remarked, “The Finance Minister has taken a leaf out of the INC’s Nyay Patra 2024. However, the scheme is designed to grab headlines with its ambitious target of 1 crore internships, rather than offering a guaranteed program for all diploma holders and graduates as envisioned by the Indian National Congress.”
Employment Incentives
The Congress had also promised to reform the production-linked incentives (PLI) scheme to target sectors capable of creating thousands of jobs and introduce a new employment-linked incentive (ELI) scheme for corporates. This scheme aimed to provide tax credits for additional hiring.
In response, the Budget outlined three employment-linked schemes:
A scheme providing one month’s wage to new entrants in the workforce across all sectors.
Incentives for additional employment in the manufacturing sector, particularly for first-time hires.
Reimbursement of up to Rs 3,000 per month for two years towards EPFO contributions for additional employees earning up to Rs 1 lakh per month.
Sitharaman stated that these schemes are expected to benefit 30 lakh youth and their employers.
Women’s Hostels and Angel Tax
The Congress manifesto had also promised to double the number of working women hostels across the country, with at least one Savitribai Phule Hostel in each district. The Budget’s mention of setting up working women hostels in partnership with state governments aligns with this promise.
Additionally, the Congress had pledged to eliminate “angel tax” and other burdensome tax schemes that hinder investment in new companies and start-ups. Sitharaman’s Budget included a proposal to abolish angel tax for all classes of investors, reflecting this aspect of the Congress’s manifesto.
Strategic Mining Program
Another area where the Congress saw alignment was in the strategic mining program. The Congress manifesto had promised to explore and mine rare earths and critical minerals, aiming to increase mining’s share in GDP to 5% and create 1.5 crore jobs in mineral-rich states. Sitharaman’s announcement of a critical mineral mission for domestic exploration, recycling, and overseas acquisition echoed this commitment.
Conclusion
While the Congress has noted several parallels between its manifesto promises and the Budget’s provisions, it remains to be seen how these plans will unfold in practice. The party’s reactions highlight their ongoing critique of the Modi government’s policies and their aim to showcase the relevance of their own proposed initiatives.
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