Budget 2022 should address employment generation, growth across various sectors

Budget expectations on employment generation

· Online upskilling needs to be the primary focus going forward, as most skill centres have remained non-functional due to Covid-19 in the last 22 months. 

· The Pradhan Mantri Rojgar Protsahan Yojana (PMRPY) Plan Scheme which had been designed to incentivise employers for the generation of new employment should be immediately brought back allowing EPFO grants for the first 3 years for all first time UAN generators.

· Extension of benefits offered in Section 80JJAA of the Income Tax Act which supports job creation. Further, given the wage inflation that has been happening in the past few years, entry-level employment should be considered as wages up to ₹30,000 per month for the purposes of Section 80jjaa for employers that create net addition to employment, instead of the current amount of ₹25,000 per month.

Government measures for the buoyancy of the economy

“Due to the ‘Great Resignation’ and consequent inflation of wages, talent shortages are already visible. This problem would only compound further as borders open and Indian talent is pursued by more developed countries. The Indian government must also begin benchmarking individual income tax rates to neighbouring countries, especially as income tax rates on individuals in South East Asia hovers near the 15-22% mark in comparison to Indian rates at 30%+ cess,” says Lohit Bhatia

The Union Budget 2022 will be presented on February 1 by Union Finance Minister Nirmala Sitharaman.