By Dr. Gyan Pathak
Reduction in the total allocations for Union Ministry of Labour and Employment and also workers’ social security in the Interim Union Budget 2024-25 has revealed PM Narendra Modi government’s anti-labour stance, an allegation that has been labelled by the joint platform of Central Trade Unions (CTUs) since the passage of four controversial labour laws in the Parliament of India in 2019 and 2020.
In the backdrop of very high level of unemployment in the country, even PM Narendra Modi has been appearing in public events to distribute appointment letters to unemployed youths, only to show his concern, but the Interim Union Budget shows his government has really little concern. The total allocation of the Union Ministry of Labour and Employment has been reduced from Rs 13,221.73 crore for 2023-24 to Rs 12,531.47 crore in 2024-25. Even allocation for the pet scheme of PM Narendra Modi, the Atmanirbhar Bharat Rozgar Yojana, has been drastically cut from Rs 2,272 crore in 2023-24 to just Rs 150 crore in 2024-25. It is shocking that allotment of Labour Welfare Scheme for 2024-25 has been reduced to less than half to Rs 50.68 crore from Rs 102 crore in 2023-24 (RE). It was even less than Rs 75 crore in 2023-24 (BE), and Rs 80.78 crore in 2022-23 (actual).
Directorate General of Factory Advice Services has been allocated Rs 39.34 crore for 2024-25, against Rs 40.03 crore in the 2023-24 (RE), and Rs 39.45 crore in 2022-23 (actual). Directorate General of Mines Safety’s allocation has been reduced from Rs 120.93 in 2023-24 (RE) to Rs 119 crore for 2024-25. Directorate General of Employment got a minor increase with allocation of Rs 76.86 crore as against Rs 74.96 crore in 2023-24 (RE).
Allotment for Directorate General of Labour Welfare Scheme has been reduced to Rs 156.36 crore for 2024-25 from Rs 157.33 crore in 2023-24 (RE), much less than the budget allocation of Rs 175.78 crore for 2023-24. It shows the dismal performance of the Directorate General of Labour Welfare Scheme in the current fiscal, as against the good performance claim of the government for labour welfare in the country.
India government does not provide real time labour data which keeps the people in dark about the ground level reality. After much criticism, especially after the COVID-19 crisis outbreak of 2020 that had crippled the entire economy and thereby the labour market, the Centre had increased allotment for Labour and Employment Statistical System from Rs49.12 crore in 2022-23 (actual) to Rs 110 crore in 2023-24 (BE), however, it spent only Rs 44.80 crore as shown in the 2023-24 (RE). Allocation for the year 2024-25 is only Rs 50 crore, which shows that the Modi government is not much interested in improving the Labour and Employment Statistical System in the country.
Pradhan Mantri Shram Yogi Maandhan and Pradhan Mantri Karam Yogi Maandhan were other much touted flagship schemes for image building of Modi government. However, allocation of Pradhan Mantri Shram Yogi Maandhan got reduced to Rs 177.24 crore for 2024-25 from Rs 269.91 crore in 2022-23 (actual), Rs 350 crore in 2023-24 (BE), and Rs 205.21 crore in 2023-24 (RE). Budget 2023-24 had allocated Rs3 crore for Pradhan Mantri Karam Yogi Maandhan, but government spent only Rs 0.1 crore as 2023-24 (RE) shows. This scheme has been allocated only Rs 0.01 crore for the year 2024-25.
After much hue and cry on the disturbing lever of suffering of the unorganised workers in the country, which are over 90 per cent of the total workforce, Modi government, after litigation in the Supreme Court of India, had agreed to have a National Database for Unorganized Workers. Centre had allocated Rs 300 crore in 2023-24 (BE), but the revised estimate for the year shows the government spent only Rs 102.96 crore. The Interim Budget 2024-25 has reduced allocation to Rs 176.84 crore from Rs 300 crore in 2023-24 (BE).
National Child Labour Project including grants in aid to voluntary agencies and reimbursement of assistance to bonded labour has been cut drastically to Rs6 crore in 2024-25 from Rs 21.05 crore in 2022-23 (actual). Rs 20 crore was allotted in 2023-24 (BE) but the Centre spent only Rs 12.98 crore as shown in 2023-24 (RE).
While the population is growing, job market crisis has worsened further, and the number of job opportunities are reducing fast, getting jobs for disadvantaged classes such as SC, SC, and OBC in cut-throat competition has becoming increasingly difficult. They needed special assistance in education and guidance. There is a scheme for Coaching and Guidance for SC, ST and Other Backward Classes. The Interim Budget 2024-25 has reduced its allocation to Rs 20.6 crore, while the actual amount spent in 2022-23 was Rs21.97 crore, while revised estimate for 2023-24 shows it was Rs 25 crore.
There are other Centrally Sponsored Schemes for jobs and skill development by the states and Union Territories. Actual expenditure in the two Employment Generation Programmes–Coaching and Guidance for SC, ST and Other Backward Classes – was Rs43.98 crore in 2022-23. There was a negative support to states/UTs of minus (-)0.01 crore rupees under Coaching and Guidance for SC, ST and Other Backward Classes. Spend on Nation Career Services was Rs43.99 crore. However, allocation in these two Employment Generation Programmes have been reduced to zero in 2023-24, and now in 2024-25. Grant-in-aid for other social services in developmental heads for states and UTs have also been reduced to zero, as against Rs 22.98 crore actual in 2022-23. For North Eastern Areas allocation was reduced to Rs 1191.07 crore for 2024-25 as against Rs 1243 crore in 2023-24 (BE), and Rs 1204 crore in 2023-24 (RE).
It should be noted that unemployment in the country has been hovering in the range of 7 – 10.1 per cent since October 2023, as per the CMIE data. Workforce participation is has remained around just 40 per cent. Joblessness among those in the age group of 20 to 24 grew during October-December 2023 quarter to 44.49 per cent from 43.65 per cent from the previous quarter. Quality of job has been worsening, both in the rural and urban areas.
Government has no employment guarantee scheme for the urban areas, and the allocation of MGNREGA scheme has been kept at Rs 86,000 crore while at least Rs 2.72 lakh crore is needed to provide 100 days work in a year to job card holders. Agriculture growth this year is estimated to decline to 1.8 per cent at a time when it supports 45.8 per cent of workforce. As per PM Garib Kalyan Ann Yojana, there are 80 crore people who can’t afford even foodgrain, while according to World Bank more than 97 crore people can’t afford healthy food.
In this backdrop, Modi government’s Interim Budget frustrates hope of the working class. Employment generation record is dismal. The Union Minister of Labour and Employment had said in the Parliament about 7 months ago that Modi government generated 1.25 crore jobs in last 9 years, however, 2 crore youths enter every year in the job market in the country. Modi’s 2014 assurance to provide work with dignity to all hands, has lost its meaning. On the eve of Lok Sabha election Modi is going on giving all sorts of guarantee again, curiously everything @2047 Vikasit Bharat (Developed India), while his government’s interim budget is just anti-labour. (IPA Service)
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