NEW DELHI: Throughout a current Rajya Sabha dialogue on the Union Budget 2024-25, former finance minister and Congress chief P. Chidambaram raised 4 crucial challenges that the Indian financial system is at present dealing with.
Chidambaram expressed concern over the unemployment rate, which stood at 9.2% in June 2024 in line with the Centre for Monitoring Indian Financial system (CMIE). He questioned the effectiveness of the Manufacturing Linked Incentives (PLI) scheme in creating jobs and demanded transparency from the finance minister relating to the precise variety of jobs generated below the scheme.
The Congress chief additionally expressed doubts in regards to the newly launched Employment Linked Incentives (ELI) scheme, saying, “It’s an inspiring thought, however it doesn’t encourage confidence that it is possible for you to to put 290 lakh folks below the ELI scheme as described.”
He additionally questioned the Reserve Financial institution of India’s report claiming the creation of over 4.67 crore jobs in FY24, arguing that the excessive variety of candidates for restricted police posts in Uttar Pradesh signifies a deeper job disaster.
Inflation was one other vital subject raised by Chidambaram, who criticized the finance minister for dismissing the subject with simply ten phrases in her funds speech. “The finance minister in her speech dismissed the topic in 10 phrases. Precisely 10 phrases. Is inflation such a trivial topic you possibly can cope with it casually and dismiss it in 10 phrases”, he added.
Elevating the difficulty of low wages, Chidambaram identified that 65% of the 7.4 crore taxpayers in 2022-23 had zero tax legal responsibility. He criticized the aid measures offered to those that have transitioned to the brand new tax regime, suggesting that the federal government’s give attention to simply 2-3 crore folks overlooks the broader inhabitants of 142 crore Indians.
Chidambaram additionally addressed considerations about federalism, criticizing the selective method in distributing monetary aid to sure states. He stated, “I do not grudge in any respect you giving aid to Andhra Pradesh or Bihar, however what in regards to the different states? We’re a federal nation. That is the dying of federalism if you happen to choose and select.”
In her funds speech, finance minister Nirmala Sitharaman launched three schemes below the ‘Employment Linked Incentives’ initiative, a part of the Prime Minister’s bundle. These schemes give attention to EPFO enrolment and goal to learn 210 lakh youth by offering one month’s wage to newly employed people in formal sectors, with a wage eligibility restrict of Rs 1 lakh per thirty days.
The schemes additionally search to assist employers by reimbursing as much as Rs 3,000 per thirty days for 2 years in direction of their EPFO contributions for every further worker throughout the specified wage vary.
Chidambaram expressed concern over the unemployment rate, which stood at 9.2% in June 2024 in line with the Centre for Monitoring Indian Financial system (CMIE). He questioned the effectiveness of the Manufacturing Linked Incentives (PLI) scheme in creating jobs and demanded transparency from the finance minister relating to the precise variety of jobs generated below the scheme.
The Congress chief additionally expressed doubts in regards to the newly launched Employment Linked Incentives (ELI) scheme, saying, “It’s an inspiring thought, however it doesn’t encourage confidence that it is possible for you to to put 290 lakh folks below the ELI scheme as described.”
He additionally questioned the Reserve Financial institution of India’s report claiming the creation of over 4.67 crore jobs in FY24, arguing that the excessive variety of candidates for restricted police posts in Uttar Pradesh signifies a deeper job disaster.
Inflation was one other vital subject raised by Chidambaram, who criticized the finance minister for dismissing the subject with simply ten phrases in her funds speech. “The finance minister in her speech dismissed the topic in 10 phrases. Precisely 10 phrases. Is inflation such a trivial topic you possibly can cope with it casually and dismiss it in 10 phrases”, he added.
Elevating the difficulty of low wages, Chidambaram identified that 65% of the 7.4 crore taxpayers in 2022-23 had zero tax legal responsibility. He criticized the aid measures offered to those that have transitioned to the brand new tax regime, suggesting that the federal government’s give attention to simply 2-3 crore folks overlooks the broader inhabitants of 142 crore Indians.
Chidambaram additionally addressed considerations about federalism, criticizing the selective method in distributing monetary aid to sure states. He stated, “I do not grudge in any respect you giving aid to Andhra Pradesh or Bihar, however what in regards to the different states? We’re a federal nation. That is the dying of federalism if you happen to choose and select.”
In her funds speech, finance minister Nirmala Sitharaman launched three schemes below the ‘Employment Linked Incentives’ initiative, a part of the Prime Minister’s bundle. These schemes give attention to EPFO enrolment and goal to learn 210 lakh youth by offering one month’s wage to newly employed people in formal sectors, with a wage eligibility restrict of Rs 1 lakh per thirty days.
The schemes additionally search to assist employers by reimbursing as much as Rs 3,000 per thirty days for 2 years in direction of their EPFO contributions for every further worker throughout the specified wage vary.
