The brighter side of budget

With growing youth bulge in the country, youth unemployment is seen as a ticking time bomb that will eventually explode if not addressed in time. The good thing is that the PML-N finance team seems to have understood the gravity of this issue.
While there may be a slew of negativities attached with the budget yesterday, there is a silver lining for the frustrated youth. From youth training programmes to small business loans, the recent budget gives the youth countless reasons to cheer.
"Lack of experience" is often quoted by the youth as the prime reason for not getting their desired jobs. The recent budget addresses this issue by offering fresh entrants to labor force a "PM youth training programmes".
Those masters degree holders who are below the age of 25 are eligible to apply for the programme whereby they will receive 12-month on-the-job training with assignments near to their residence at a fixed stipend of Rs10,000 per month. The youth can count on this experience to make their ways to their professional career.
The budget also bears good news for those who have barely attained elementary education. Government youth skills development programme aims to provide vocational training to selected candidates in nearly twenty five different fields via National Vocational and Technical Training Commission (NAVTTC). It is hoped that this programme would prepare them for decent jobs abroad - a farsighted approach targeting to boost remittances going forward.
It is widely argued that due to incredibly high fees of higher secondary education, majority of those who hold masters degree represent the elite class. As of now, only the students of FATA, Balochistan and Gilgit Baltistan receive government funded scholarships and financial assistance for their masters and doctorate studies. To widen the slim education net, the current budget extends a similar scheme to benefit the students of South Punjab and interior Sindh, Multan, Bahawalpur and D.G. Khan District which are equally underdeveloped and yearn for sheer support.
Under its youth development programme, the government plans to distribute free laptops to the students pursuing degree programme from HEC recognized universities or institutions. This is expected to introduce the youth to the latest technology which is expected to put in to economic development.
Reportedly, last time the laptop scheme cost Rs4 billion to the national exchequer. This time around, with the scheme catering wider audience, only Rs3 billion have been allocated. Only time will tell how the government manages to execute the scheme with the thin budget.
To boost the lackluster SME sector which has suffered due to cautious banking exposure, the government plans to trigger the banks to extend small business loans ranging from Rs0.1 million to Rs2 million to 50,000 people at a markup of 8 percent per annum with federal budget subsidizing the differential markup. Besides, a microloan of Rs5 billion will also be disbursed at zero markup to the under-privileged through rural support programmes with women receiving at least 50 percent of the loans.
To address the inadequate housing issue, the government also plans to provide subsidized house loans ranging from Rs1.5 million to R5 million to 50,000 beneficiaries via concerned authorities.
With the country grappling with soaring fiscal deficit, whether these plans prepared by the government will resolve the issues or add more to the fiscal woes is yet to be seen with the whole thing contingent upon the ambitious plans to improve the tax revenues.

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Budget FY14: New Programs for Youth

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                                           Salient Features                          Beneficiaries

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1  PMs Youth Training Program            1 year training, Rs 10k stipend   Youth aged less than 25 yrs

                                                                            16 yrs education

2  PMs Youth Skills                      6 month vocational training       25,000 youth up to 25 yrs

   Development Program

3  Small Business Loans Scheme            Rs100k-2000K, 8% markup           50,000 borrowers

4  PMs Scheme for                        Free laptops                      HEC recognised university

   Provision of Laptop                    students

5  Fee Reimbursement Scheme               Tuition fee for Higher            Bright students from interior

                                          Education                         Sindh and South Punjab

6  PMs Micro Finance Scheme              Rs5 billion Qarz-e-Hasana         At least 50% women

7  PMs Housing Finance Scheme            Rs1.5-5 million mortgage          50,000 people

                                          facility, 8% markup

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