Budget 2026: Govt could allocate more than Rs 30,000 crore in Budget for the Employment Linked Incentive Scheme

The government may hike the one-time stipend amount provided to interns under the PM Internship Scheme (PMIS), sources say. Currently, the central government provides a direct-benefit-transfer of Rs 6,000 to a new intern, which may be raised by Rs 1,000-2,000. On the 50-year interest free capex-loan scheme for states, the CII has asked the allocation to be increased by 10 percent next year. For the past two years, the Budget outlay has been pegged at Rs 1.5 lakh crore; which means, in FY27, it should be pegged at Rs 1.65 lakh crore. “This will result in generating additional job opportunities, at least in the three sectors – construction, transportation, and logistics,” Sajai Singh, Partner at JSA Advocates & Solicitors. “The MSME sector could do with a little more support to help create jobs. For instance, providing the MSME sector easier access to finance (at lower interest rates), with fewer regulatory burdens,” Singh added. Read more