The Government has decided to set-up 1500 Multi Skill Training Institutes across the country for which ₹ 1,700 crore has been set aside in the Budget 2016-17. Announcing this in his Budget Speech in the Parliament here today, the Minister of Finance, Corporate Affairs and Information and Broadcasting, Shri Arun Jaitley said that it is the endeavour of the Government to bring entrepreneurship to the doorstep of youth through Pradhan Mantri Kaushal Vikas Yojana (PMKVY).

The Finance Minister said that Skill India Mission seeks to capitalize our demographic advantage. Since its launch, the National Skill Development Mission has created an elaborate skilling eco-system and imparted training to 76 lakh youth. He said that we have decided to set-up a National Board for Skill Development Certification in partnership with the industry and academia .We propose to further scale- up Pradhan Mantri Kaushal Vikas Yojana to skill one crore youth over the next three years, the Minister said.

The Finance Minister Shri Jaitley also stated that Entrepreneurship, Education and training will be provided in 2200 colleges, 300 schools, 500 government ITIs and 50 Vocational Training Centres through Massive Open Online Courses. Aspiring entrepreneurs, particularly those from remote parts of the country, will be connected to mentors and credit markets. (pg12/para66)

In another important announcement, Shri Jaitley said that in order to incentivize creation of new jobs in the formal sector, Government of India will pay the Employee Pension Scheme contribution of 8.33% for all new employees enrolling in EPFO for the first three years of their employment. The Scheme will be applicable to those with salary up to ₹ 15,000 per month and a budget provision of ₹ 1000 crore has been made for this.

Further, the Finance Bill, 2016 proposes to broaden and liberalize the scope of the employment generation incentive available under section 80JJAA of the Income Tax Act.

A National Career Service was launched in July, 2015. Already 35 million jobs seekers have registered on this platform. In the new Budget, the Government proposes to make 100 Model Career Centres operational by the end of 2016-17. It also proposes to inter-link State Employment Exchanges with the National Career Service platform.

Government funds employer pension contributions to incentivise formal-sector hiring, alongside expanded national skilling and placement measures. The Government will finance employer pension contributions for newly enrolled formal-sector employees for an initial employment period, subject to salary-based eligibility, and the Finance Bill proposes to broaden an existing income-tax-linked employment generation incentive. Budgetary allocations are provided to establish 1,500 Multi Skill Training Institutes, scale up a national skills programme, create a National Board for Skill Development Certification, operationalize 100 Model Career Centres, and inter-link State employment exchanges with the National Career Service platform to enhance training and placement.