On 1st February, 2022, The Finance Minister of India, Nirmala Sitharaman announced the union budget for the financial year 2022-23. But what is in it for the working class?
In this blog we will be going over the Union Budget for the Financial year 2022-23. What it brings to the table for the salaried class and the human capital in the industry as a whole. Let us begin by knowing what the Budget 22 has for the working class.
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What Announcements were made in the Union Budget 2022-23 regarding Human Capital?
- The Emergency Credit Line Guarantee Scheme (ECLGS) is extended till March 2023, 60 lakh jobs eyed in next 5 years.
- Efforts of central, state governments leading to jobs, entrepreneurial opportunities.
- Digital ecosystem for skilling and livelihood to be launched.
- This will aim to skill, reskill, and upskill citizens through online training.
- API based skill credentials, payment layers to find relevant jobs and opportunities.
- The Government vows a stable and predictable tax regime.
- A fund with blended capital raised under co-investment model facilitated through NABARD to finance startups in agriculture & rural enterprises for farm produce value chain.
- Startups will be promoted for Drone Shakti.
- PE/VC invested Rs 5.5 lakh crore in startups, an expert committee will be set up to suggest measures to help attract investment.
- Existing tax benefits for startups, which were offered redemption of taxes for 3 consecutive years, to be extended by 1 more year.
(Source: The Economic Times)
How will it affect Human Capital?
Now that we know what new announcements were made with respect to Human Capital and the working class of people, it is necessary we take a look at how it is going to affect them while in practice.
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More Employment opportunities
Since the government is eyeing to create sixty lakh employment opportunities by the end of the financial year, it is very obvious that there will be increased job opportunities for the youth of the nation. Alongside that, the funds allocated, tax benefits and expected investment interests all point towards increased employment opportunities. This will positively affect Human Capital as more of the youth is provided with job opportunities, the recruitment and employment rate will go up, ultimately resulting in increased performance.
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Employee Skill Upgradation
Funding Startups and better usage of Information Technology in the recruitment process helps employers to check off the first requirement in the list of traits of a good employee – somewhat skilled to start with. Since the recruitment efficiency is boosted, it is time we focus on employee training and skill upgradation. The government has also announced plans to provide digital training for the workforce while helping in further sharpening the skills of the employees.
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Push Towards Digitisation
By now, it is very obvious that the government is taking huge steps in the direction of Digital India. Government plans to digitise the recruitment, training and overall governance of employees in the workspace. Private solution providers along with the government’s efforts to digitise many office and industry processes is sure to be a push in the direction of Digitisation.
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Boost in IT Sector
India is speculated to be the leading IT Sector industry by the end of 2025. A leading SaaS solution exporter by the end of 2026 and a leading economy in terms of GDP as well as growth rate by the end of 2025. India is already progressing quickly in the IT industry and has become one of the major players in the international market. The Budget 2022-23 is just a cherry on the top!
In Conclusion, there might not be any major changes in the tax slabs or any major promises made to increase foreign direct investments but there are many small benefits for the working class. This makes the budget a positive for the salaried class of India and the youth as well.