Budget 2019: Modi government’s plan, low salaried people will get the benefit of PF, pension, insurance
Every sector is expected from the last budget of the Modi government, but the highest expectation is for the working class. This class does the job but financial security is his biggest weakness. In such an interim budget, the Modi government can give big relief to such employees. According to sources, in the interim budget, the Modi government can give a big boost to the informal sector. Government can make big announcements about social security in the micro and small scale industries. For example, the government wants that those who work on low salary, they have facilities like Provident Fund, Insurance and Pension. So far these facilities are available to the Organized Sector.
What is the Informal Sector
Small and middle class companies whose number of employees do not register and companies in which most day wages work, such companies are involved in the informal sector. The government has records of companies, but there is no information about the workers. These companies have low salary employees and most people do not get facilities like PF, insurance. Most people in the informal sector do not come under the purview of tax.
At the same time, if the matter of Organized Sector is talked about, the government records the full record of the companies and workers working there. These employees get all types of social security facilities.
What is the government plan?
Government believes that opportunities for employment in the informal sector are increasing. If social security is implemented, then the trend of people will increase and there will also be securities in the form of a job. Statistics show that more than 12 crore people in the country are working in MSME sector, whereas there are more than 5 million MSMEs registered and registered.
Contribution of 27 percent in GDP
Informal sector accounts for about 27% of country’s GDP. About 7% of this is in manufacturing and about 21% of the service industry is contributing. The goal of the government is that social security in the informal sector will not only create jobs, but also the pressure on the formal sector will be reduced.