homeeconomy NewsUnion Budget 2019 20: Have a big job creation challenge, admits junior aviation minister Jayant Sinha
Union Budget 2019-20: Have a big job creation challenge, admits junior aviation minister Jayant Sinha
Jayant Sinha on Friday said the country has a big job creation challenge as the youth want the government jobs, which are few.
In the wake of India's jobs data controversy, where a report revealed that the unemployment rate stood at a 45-year high of 6.1 percent during 2017-18, minister of state for civil aviation Jayant Sinha on Friday said the country has a big job creation challenge as the youth want the government jobs, which are few.
"There is a big desire for government jobs and some balancing has to happen across the economy to address jobs challenge," Sinha told CNBC-TV18.
The report that was accessed by Business Standard said the unemployment rate was at its highest level since 1972-73, the period since when the data is comparable. Further, the employment survey report said that unemployment rate was higher in urban area at 7.8 percent than the rural area at 5.3 percent.
According to the National Sample Survey Organisation (NSSO) report, there was a significant decline in the labour force participation rate (LFPR). As per the NSSO survey, in 2011-12, the unemployment rate was at 2.2 percent.
However, the government on Thursday, refuted the jobs data, saying that the NSSO report was yet to be approved.
Niti Aayog vice chairman Rajiv Kumar, who had previously mounted a defence of lowering of UPA-era GDP growth rates, at a press conference on Thursday said the report cited by the newspaper "is not finalised. It is a draft report".
Refusing to comment on the content of the news report, Kumar said the government will release its employment report by March after collating quarter-on-quarter data and debunked claims of jobless growth, saying how can a country grow at an average of 7 percent without employment.
According to Sinha, there are challenges in the agriculture sector as they need policy reforms and every budget 'has to respond to the challenges of the times'.
The minister expects vigorous and effective policy response to the farm distress issue, "The government will be promising Jharkhand farmers by paying them Rs 5,000 per acre."
Sinha said the feedback from the people on how to address challenges will also be factored in as the Modi government will present its final budget today ahead of the Lok Sabha elections.
"The government is committed to fiscal prudence and consolidation and will bring down the extra burden and fiscal sanity unlike the previous government," he said.
While saying that government has been supporting sectors like banks and aviation growth to grow, he said the reality is that the country has to absorb 8-10 million jobs every year.
"The government's efforts including the Insolvency and Bankruptcy Code (IBC) procedures and the ease of doing business facilities approved by the government are meant to create jobs," he added.
Talking on employment guarantee scheme, Sinha said, "The people are not taking up National Rural Employment Guarantee Act (NGREGA) jobs and added that private equity and venture capital investments have gone up three times in the last four years."
First Published: Feb 1, 2019 9:39 AM IST
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