What will Budget 2024 hold for Gen Z?

An easier life: Ahead of the interim budget due for being presented on February 1, announcements pertaining to job creation, affordable education and tax exemption are expected which will impact the newest crop of voters - Generation Z.

Abbreviated as Gen Z, the generation is aged in their 20s and born at the cusp of the Y2K revolution, and is known for being tech-savvy, socially conscious, and sustainable in their approach to life.

Gen Z and millennials comprised more than half, or 52 per cent of the global population in 2021, according to a NASSCOM report. This was against a global average of 47 per cent.

As the significantly high population enters the workforce amid a funding winter that triggered layoffs in the workforce, we take a look at industry expectations from policymakers for sectors that directly involve the new-gen.  

Education

Founders in the education space seek relaxation on education loans and GST slabs on products and services in the category, for affordable upskilling.

Ahead of the interim Union Budget announcement, Physics Wallah (PW) co-founder Prateek Maheshwari urged for a reduction in the GST slab on educational products and services. 

Maheswari, also Co-Chair of the India Edtech Consortium (IEC), said "In view of the upcoming interim Union Budget, we would like to appeal to the government to increase the education sector’s budget, and reduce the GST slab from 18 per cent to 5 per cent on educational products and services.”
 
He also called for the enhancement of digital infrastructure to increase accessibility and facilitate the seamless implementation of learning solutions for children in the remotest corners of the country.

"As per the recent Annual Status of Education Report (ASER), more than half of the youths aged 14 to 18 in rural India still struggle to solve basic division problems and lack access to digital tools and skills. Bridging this gap requires a robust digital infrastructure."

He also called for collaboration between the public and private sectors to drive a change in the sector at scale, and reducing the skillgap among jobseekers.

The present regime introduced the National Education Policy (NEP) in 2020 which introduced changes to the education system, from the inclusion of flexibility in subject choice and provisions for dual-degree.  

Vaibhav Sisinty, founder of GrowthSchool called for relaxation in interest rates for education loans.

“A lot of changes have been done in the education policy, like the credit-based system - those policy changes have already happened that are propelling students in the right direction. On the budgetary level, if interest rates for loans on education can be brought down, it will really help people in levelling up and upskilling, with inflation happening at this rapid pace and the market not being so great in the macro(economic terms),” he said.

Jobs

Gen Z is interested in measures that promote job creation, skill development, and entrepreneurship.

The interim budget may see the scope of Production Linked Incentive scheme (PLI) to sectors like garments, jewellery and handicrafts, which will create more jobs and incentivise manufacturing.

"Today we have 14 sectors under the PLI scheme, but a lot of these sectors do not generate massive employment. Leather, garment, handicraft, jewellery -- many of these sectors need PLI scheme to come in because they are the ones which are the highest employment generators. That will help lower income households as well as urban," Deloitte India Partner Rajat Wahi told PTI.

There is also a shift towards the gig economy with a push on policies that support freelance work and more flexible work arrangements.

Taxation

With a rising cost of housing posing concern for young people, the Gen Z will look forward to measures for affordable housing and finance measures.

Notably, over 30 approvals are required from state and union government authorities for a real estate project. 
A single-window clearance system for simplifying the bureaucratic process will result in earlier project approvals, lesser delays and enhancing the overall efficiency of projects to enable more housing for all.

Experts also expect relaxation on tax slabs, with the limit in rebate likely to be increased to at least Rs 7 lakhs.