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WILL THE BUDGET 2021 SOLVE THE UNEMPLOYMENT PROBLEM

~VINAYAK 


The commoner , still reeling under the pandemic and subsequent economic contraction expects tons .

Although the finance ministry provided a swathe of Covid-19 relief measures with reference to taxation and subsidies in 2020, the government can still take measures to boost the pandemic.


Union minister of finance Nirmala Sitharaman will announce the Budget 2021 in parliament on February 1. Among many things, all eyes are going to be on the Finance Minister's budget speech to ascertain if she'll disclose measures to unravel India's ever growing issue of unemployment. The year 2020 was particularly a nasty year for India in terms of employment. The economy suffered the most important shock after the primary lockdown in March when around 11.3 crore people lost jobs because the entire economy went into shutdown mode.

The subsequent months also didn't bring any respite, and therefore the percentage has been dismal since then. After a rude shock in April, May registered employment gain of about 3.1 crore. The economy has been adding jobs since then. However, it's yet to succeed in the pre-covid level; in February 2020, the country had 40.5 crore registered employees.


To beat the Covid-19 impact, the government had announced the Atma Nirbhar Bharat package worth Rs 20 lakh crore. The entire stimulus of Rs 20,97,053 crore included the sooner measures announced by the Federal Reserve Bank worth Rs 8,01,603 lakh crore and Rs 1,92,800 crore announced by the govt under Pradhan Mantri Garib Kalyan Package.

Sitharaman also announced Atmanirbhar Bharat Rozgar Yojana in November. Under the scheme, the govt announced subsidy to companies for 2 years for brand spanking new employees working on or after October 1, 2020. The programme was launched to incentivise creation of latest jobs during COVID-19 recovery.

For companies employing up to 1,000 employees, the Centre would offer total 24 per cent of the wages -- employee's contributions (12 per cent of the wages) and employer's contributions (12 per cent of wages). For those employing over 1,000 employees, EPF contribution worth 12 per cent are going to be made by the Centre.

Despite these quick fixes announced by the Centre amid the pandemic, there's got to do far more to boost employment opportunities within the country, suggest experts. Many expect the government could announce measures to re-skill India's youth in areas like education, healthcare and hospitality to deal with the unemployment problem.


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