Government Falls Short of Aatmanirbhar Bharat Rojgar Yojana Employment Targets
- 20 Aug 2023
The Indian government has not been able to meet its employment generation goals in the formal sector under the Aatmanirbhar Bharat Rojgar Yojana (ABRY), launched in 2020 during the pandemic.
Key Points:
- Enrollment Figures below Target: According to the latest government data, as of July 22, 2023, enrolments under ABRY reached 6.04 million.
- While this exceeded the initial target of 5.85 million, it fell short of the revised target of generating 7.18 million jobs under the scheme.
- Disbursement: Disbursements under the ABRY scheme are significantly behind the target. The government has spent Rs. 9,663.82 crore, which is only 42.3% of the initially targeted expenditure of Rs. 22,810 crore for the entire scheme period, according to the latest data.
- Beneficiary Trends: Government data indicates that the number of beneficiaries under the scheme were 1.29 million in 2020-21, 4.19 million in 2021-22, around 540,000 in 2022-23, and 9,082 until July 18, 2023. Reimbursements for these years amounted to Rs. 351.07 crore, Rs. 4,046.35 crore, Rs. 4,593.04 crore, and Rs. 649.9 crore, respectively.
- State Contributions: The top 10 states in creating formal employment under ABRY include Maharashtra, Tamil Nadu, Gujarat, Karnataka, Uttar Pradesh, Haryana, Rajasthan, Telangana, Delhi, and Madhya Pradesh.
About the Atmanirbhar Bharat Rojgar Yojana (ABRY)
- The Atmanirbhar Bharat Rojgar Yojana (ABRY) was introduced to stimulate employment growth within the formal sector.
- This initiative aims to encourage the creation of fresh job opportunities during the economic recovery phase following the Covid-19 pandemic, as part of the Atmanirbhar Bharat Package 3.0.
- Objectives: The primary objective of ABRY is to stimulate the establishment of new employment opportunities during the economic recovery phase prompted by the Covid-19 crisis.
Beneficiaries under the Scheme
- Newly hired employees in establishments registered with the Employees' Provident Fund (EPF), with monthly earnings below Rs. 15,000.
- EPF members, drawing a monthly wage below Rs. 15,000, who exited from employment during the Covid-19 pandemic period, ranging from March 1, 2020, to September 30, 2020.
- Individuals who secured new employment positions on or after October 1, 2020.
Government's Contribution
- The Central Government extends a subsidy for two years for eligible employees engaged on or after October 1, 2020, according to the following scale:
- Establishments with a workforce of up to 1000 employees: Covering both Employee’s contributions (12% of wages) and Employer’s contributions (12% of wages), summing up to 24% of wages.
- Establishments employing more than 1000 employees: Only the Employee’s EPF contributions (12% of EPF wages) are covered.
Duration of the Scheme: The ABRY scheme remained operational until June 30, 2021, marking the last date for enrolment.
Issues and Challenges Associated with ABRY
- Enrolment and Job Creation Shortfalls: Enrolment figures indicate lower participation among eligible employees compared to initial expectations.
- Disbursement Delays: The disbursement of benefits under the scheme has fallen short of the predetermined targets, with only about 42% of the originally planned expenditure utilized to date.
- Limited Impact on Employment Generation: The scheme's outcomes suggest that it has not been as effective in generating employment as initially envisioned.
- Complex Eligibility Criteria: The complexity of the eligibility criteria has led to confusion among eligible employees, employers, and implementing agencies.
- Geographical Disparities: The concentration of beneficiaries in specific states highlights geographical disparities in employment generation.
- Inadequate Promotion: Limited awareness and promotion efforts for the scheme may be contributing to the lower enrolment figures.
