Budget 2020

Tax sops for job creation, greater push towards skilling the need of the hour

Garima Singh / Shishir Sinha New Delhi | Updated on June 27, 2019 Published on June 26, 2019

Representative image   -  THE HINDU

With unemployment being a major challenge for the government, the Budget must provide measures to address the same

The Modi 2.0 government has one big challenge — jobs, and it is widely expected that the Budget is likely to provide some incentives for job creation.

The Government has accorded high priority for the sector by creating a special Cabinet Committee on Employment and Skill Development. The Committee is headed by the Prime Minister and has as members Ministers-in-charge of Ministries handling labour-intensive sectors such as Textile, MSMEs, Tourism, Steel, Housing & Urban Affairs and Civil Aviation. The committee will work towards better synergy between job and skills, besides promoting job creation. The big issue is what can be done in this Budget for better job environment?

Simplifying the process to set up Micro, Small and Medium Enterprises (MSMEs), cutting down regulatory norms, focus on shifting workforce from unorganised to organised sector are some of the points that industry experts want to be addressed in this Budget.


“We would want the government to come up a mechanism so that setting up of micro, small and medium enterprises (MSMEs) can be simplified. These industries should be provided some tax exemption,” said Pravin Agarwala, Co-founder CEO, BetterPlace.

Scope for growth

As lot of people migrate to bigger cities, benefits given to MSMEs will help in creating local livelihood. This will help in creating local jobs, he added. According to industry, there is growth in the job opportunities in sectors such as transportation, logistics, banking and financial services. However, construction is one area where there is less growth. Industry also expects the government to invest thoroughly in public-private partnership to create world class training institutes for skilling.


Currently, a majority of the Indian workforce is in the unorganised sector so there is also demand to make the sector more organised. “Lowering the regulatory norms can help in bringing more workforce into the organised sector. There is a 18 per cent GST on HR staffing so we would expect it to be lower. Decrease in the GST would bring more people under organised staffing,” said Amit Vadera, Head, Staffing-BFSI and government, TeamLease.

Industry experts said that jobs are not the problem in the country, the issue is with the wages. There are both quality and quantity jobs available, however, proper skilling plays a major role to shift between available options and aspirations.

India Inc feels that lowering the corporate tax will create more and more job opportunities. As of now, almost 99 per cent of companies filing returns have to pay corporate tax at the rate of 25 per cent (excluding of cess and surcharge), but remaining one per cent contribute maximum of revenue. Now the expectation is that even if this one per cent is brought under 25 per cent tax bracket, they will be encouraged to invest more in both greenfield and brownfield projects and thus creating job opportunities.

Published on June 26, 2019

A letter from the Editor

Dear Readers,

The coronavirus crisis has changed the world completely in the last few months. All of us have been locked into our homes, economic activity has come to a near standstill. Everyone has been impacted.

Including your favourite business and financial newspaper. Our printing and distribution chains have been severely disrupted across the country, leaving readers without access to newspapers. Newspaper delivery agents have also been unable to service their customers because of multiple restrictions.

In these difficult times, we, at BusinessLine have been working continuously every day so that you are informed about all the developments – whether on the pandemic, on policy responses, or the impact on the world of business and finance. Our team has been working round the clock to keep track of developments so that you – the reader – gets accurate information and actionable insights so that you can protect your jobs, businesses, finances and investments.

We are trying our best to ensure the newspaper reaches your hands every day. We have also ensured that even if your paper is not delivered, you can access BusinessLine in the e-paper format – just as it appears in print. Our website and apps too, are updated every minute, so that you can access the information you want anywhere, anytime.

But all this comes at a heavy cost. As you are aware, the lockdowns have wiped out almost all our entire revenue stream. Sustaining our quality journalism has become extremely challenging. That we have managed so far is thanks to your support. I thank all our subscribers – print and digital – for your support.

I appeal to all or readers to help us navigate these challenging times and help sustain one of the truly independent and credible voices in the world of Indian journalism. Doing so is easy. You can help us enormously simply by subscribing to our digital or e-paper editions. We offer several affordable subscription plans for our website, which includes Portfolio, our investment advisory section that offers rich investment advice from our highly qualified, in-house Research Bureau, the only such team in the Indian newspaper industry.

A little help from you can make a huge difference to the cause of quality journalism!

Support Quality Journalism
This article is closed for comments.
Please Email the Editor
You have read 1 out of 3 free articles for this week. For full access, please subscribe and get unlimited access to all sections.