Congress Leader P. Chidambaram Responds to Union Budget: Praises Adoption of Congress Manifesto Proposals

Chidambaram’s Reaction to the Budget

Following the presentation of the 11th Union Budget by Finance Minister Nirmala Sitharaman, Congress leader and former Finance Minister P. Chidambaram expressed his approval of certain budgetary elements, particularly noting that some aspects appeared to have been directly inspired by the Congress Manifesto.

Congress Manifesto Influences

Chidambaram observed that the Finance Minister seemed to draw from the Congress Manifesto, which was crafted for the 2024 Lok Sabha elections. He specifically highlighted the inclusion of the Employment-linked Incentive (ELI) scheme, which was detailed on page 30 of the Congress Manifesto. Chidambaram welcomed this move as a positive step toward addressing employment challenges.

Appreciation for ELI and Apprenticeship Scheme

In a post on X, Chidambaram stated, "I am pleased to see that the Employment-linked Incentive (ELI) outlined on page 30 of the Congress Manifesto has been virtually adopted. I also appreciate the introduction of the Apprenticeship scheme and the allowance for each apprentice, as detailed on page 11 of the Congress Manifesto."

Chidambaram further commended the new Apprenticeship scheme and the provision of allowances for apprentices, aligning these measures with the Congress Party’s vision for enhancing vocational training and supporting young professionals.

Concerns About Missed Opportunities

However, Chidambaram also expressed disappointment that other proposals from the Congress Manifesto were not included. He hinted at several missed opportunities and indicated that he would outline these concerns in detail soon.

New Employee-Linked Incentive Schemes

In her seventh Union Budget address, Sitharaman introduced three new employee-linked incentive schemes aimed at boosting job creation and supporting both employers and employees. These initiatives, part of the Prime Minister’s employment package, focus on increasing participation in the Employee Provident Fund Organisation (EPFO) and recognizing first-time employees.

Scheme A: Encouraging EPFO Enrollment

Scheme A is designed to encourage EPFO enrollment among first-time job seekers. It offers a one-month wage subsidy in three installments, up to ₹15,000 per month, for formal sector employees with a salary cap of ₹1 lakh. This Direct Benefit Transfer (DBT) initiative is expected to assist 21 million young workers.

Scheme B: Incentives for Manufacturing Sector

Scheme B targets job creation in the manufacturing sector by providing incentives for additional employment linked to first-time employees. It offers benefits related to EPFO contributions for the first four years of employment, supporting 3 million new workers and their employers.

Scheme C: Support for Employers Across Sectors

Scheme C focuses on providing support to employers across all sectors. Employers will receive up to ₹3,000 per month for two years as reimbursement for EPFO contributions for each additional employee earning up to ₹1 lakh. This scheme aims to create 5 million new jobs.

Measures to Enhance Female Workforce Participation

In addition to these schemes, Sitharaman announced measures to enhance female workforce participation, including the establishment of working women’s hostels and crèche facilities through industry partnerships. The budget also includes women-specific skilling programs and efforts to improve market access for women-led Self-Help Group (SHG) enterprises.