The new scheme is to promote and incentivise job creation in the sector by bringing increasing employment opportunities for the first-time employees with a target of benefitting 30 lakh youth covering additional employment across all the sectors.
This scheme will provide incentives for both employees and employers concerning EPFO (Employees' Provident Fund Organisation) contributions during the first four years of employment.
The Finance Minister further added that the government will reimburse employers up to INR 3,000 per month for two years towards EPFO contributions for each additional employee. This initiative seeks to incentivise the employment of 50 lakh additional people.
This Budget brings along a credit guarantee scheme for MSMEs in the manufacturing sector that facilitates term loans without third-party collateral for them to purchase machinery and equipment.
The Finance Minister also declared that the borrower will have to provide an upfront guarantee fee and annual guarantee fee on the reducing loan balance with a guarantee cover of INR 100 crore.
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