Centre announces steps worth ₹9,675 crore to boost consumer demand1 min read . Updated: 12 Oct 2020, 01:13 PM IST
- Finance Ministry estimates that consumer demand worth ₹28,000 crore will be generated across central, state governments, and PSUs
NEW DELHI: Finance minister Nirmala Sitharaman on Monday announced a set of measures worth ₹9,675 crore to boost consumer demand by front-loading some expenditure.
The measures include LTC cash voucher scheme for central government employees and a special festival advance scheme.
Under the LTC cash voucher scheme, government employees can opt for receiving cash amounting to leave encashment plus three times the ticket fare to buy goods which attract 12% or more GST.
Only digital transactions will be allowed under the scheme and GST invoice will have to be submitted. Private employees can also avail the incentive if allowed by employers.
"We think the central government employees, if they opt for it, will cost ₹5,675 crore. And employees of PSBs and public sector undertakings will also be allowed to participate in this and the cost for them would be ₹1,900 crore," Sitharaman said. State government employees will also have the option to participate in the scheme, she added.
A special festival advance scheme worth ₹4,000 crore, provided to employees till the 6th Pay Commission, will be revived as a one-time affair, and will be available for all employees, the finance minister said. Interest free advance of ₹10,000 will be given to all central govt employees which will have to be repaid in 10 installments.
The advance will be given in the form of a prepaid Rupay card up to March 31, 2021, but it cannot be used to draw cash from an ATM.