Budget: Allocation made for 10 lakh beneficiaries; needed for 13 lakh

The allocation for unemployment allowance in next year’s budget,which was presented in the assembly earlier this month,may not be sufficient.

Written by SURBHI KHYATI | Lucknow | Published:March 6, 2013 12:14 am

The allocation for unemployment allowance in next year’s budget,which was presented in the assembly earlier this month,may not be sufficient.

An allocation of Rs 1,200 crore has been made,which translates into 10 lakh beneficiaries. However,registrations at employment exchanges and approval for payment of allowance had crossed 12 lakh by February-end.

Officials said they were still getting 2,000-2,500 applications daily. Therefore,the number is likely to cross 13 lakh by the end of this financial year on March 31. The government will require Rs 1,560 crore for distributing the dole to these beneficiaries. As the next fiscal starts,the officials say that the directorate is again expected to see a surge in the applications from those who will complete their education and join the job market.

“We will present the additional requirement of funds for the scheme in the supplementary budget,” said Shailesh Krishna,Principal Secretary of Labour,adding that there will be no dearth of funds for the scheme.

However,the government is still to decide the cut-off date for eligibility for unemployment allowance next year. Sources said it could be June or July-end. In the current year,only those registered until August 31 were entitled to get the allowance.

The first pre-poll promise to be fulfilled by the Samajwadi Party government,unemployment allowance is a cash dole scheme of paying Rs 1,000 per month to a registered unemployed youth between the age of 25 and 40 years with a family annual income of less than Rs 36,000. The beneficiary starts getting the allowance from the month after his application is accepted.

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