 "Labour ministry seeks to lower budget allocation for ELI schemes for FY25")
The Ministry of Labour and Employment has urged the Ministry of Finance to pare down allocation for three Employment Linked Incentive (ELI) schemes for the current financial year (FY25) by almost a third to Rs 6,852 crore in the revised estimates (RE), citing the eligibility conditions and limited time available for the schemes in FY25.
“This year, because of this new ELI scheme, we have been given a BE (Budget estimates) of Rs 10,000 crore. We have a limited amount of time this year. Therefore, in RE, we have requested for a cut on that amount,” the labour ministry said in its response to a query by the House panel on Labour and Employment.
The three ELI schemes announced in the Budget are yet to get approval from the Union Cabinet and have faced considerable delays with only a quarter to go before FY25 ends.
“The Cabinet note has been submitted. We are expecting to start shortly. The total budgetary allocation for this scheme in the next six-and-a-half years will be Rs 1.07 trillion. This year, Rs 10,000 crore has been given and we expect to spend above Rs 6,000 crore,” the ministry told the House panel on November 19.
In a detailed response on finances and physical targets, the ministry submitted that among the three ELI schemes, Rs 3,576 crore is expected to be spent on the ELI scheme for freshers, Rs 1,534 crore on the scheme that promotes job creation in the manufacturing sector, and Rs 1,651 crore on the ELI scheme that incentivises employers across all sectors to create additional employment over and above the prescribed threshold.
Besides, the House panel was also apprised of the fact that a total of 9.3 million people are expected to benefit under the three schemes in FY25.
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The parliamentary panel noted that the Employees Provident Fund Organisation (EPFO) is preparing a dedicated IT infrastructure in consultation with MeitY (Ministry of Electronics and Information Technology) for implementation of the scheme that involves preparation of software system/apps for smooth operation of applicants’ registration, disbursal of incentive/subsidy details, etc.
“As the scheme will be operated using latest technology software and devices, the committee desires that the process involved be completed at the earliest in a time-bound manner,” the panel noted.