Govt spent only 5% of funds for job, skilling schemes in FY 2026

NEW DELHI: The Centre spent 5% of the funds allocated under the flagship package for employment and skilling in FY 2025-26, raising concerns over the incentive structure, targeting and implementation of the programme.

The special package announced by the finance minister Nirmala Sitharaman in budget 2024-25 consisted of the internship scheme, upgradation of 1,000 govt run industrial training institutes (ITIs), and employment generation schemes to skill youth and make them job ready. The programme had aimed to benefit nearly 41 million youth at a cost of Rs 2 lakh crore over a period of five years.




Latest budget data released Sunday shows that govt spent nearly Rs 1,730 crore on the three components of the programme in FY26, out of a total of Rs 33,830 crore allocated in the 2024-25 budget.

With the internship scheme having seen only two pilots, the Centre spent Rs 526 crore of Rs 10,800 crore allocated during FY26.

As the scheme is being finalised and the ministry of corporate affairs will soon seek a cabinet approval, funding of the scheme has been pegged at Rs 4,788 crore in 2026-27.

In the first phase of the internship scheme, nearly 6.2 lakh applications were received against nearly 1.3 lakh internship opportunities. While companies made over 82,000 offers, only about 28,000 were accepted.

In the second round, more than 83,000 offers were made against 1.2 lakh internship opportunities, but nearly 24,600 were accepted.