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Monday, 12 October 2020

Central employees to get festival gift, 'cash' instead of LTC, Rs 10,000 advance

 In the wake of the Corona Crisis, Finance Minister Nirmala Sitharaman has made some big announcements to breathe new life into the country's economy and increase demand. The finance minister has proposed three major measures to boost demand in the country. These range from central employees' LTCs to advance schemes. Let's understand one by one.






 1. LTC Cash Voucher Scheme

 This cash voucher can be used by central employees for any purchase or service. But he will have to spend three times the amount of LTC. The employee will have to buy the same goods which will be subject to GST of 12 per cent or above. Goods should be collected only from GST registered vendors. The employee will also have to show the invoice of where the expenses have been incurred. Only then will all exemptions be granted. In addition, the 10 days leave encashment received by the central employees will also have to be spent. All these expenses will have to be borne by March 31, 2021. Payment of all these expenses and purchases should be in digital mode.


 It is worth mentioning here that the central employees get LTC every four years for one trip of their choice and once for their hometown. But because of the Koro crisis, they can't go this time. So the government will now convert the rent into a cash voucher and pay the employees. Which he plans to spend by March 31, 2021. The government hopes that this will increase spending in the country.


 The scheme will provide Rs 5,675 crore to central employees. If government companies and state-owned banks also implement it, they will get an additional Rs 1,900 crore. If the state governments and the private sector also agree with the Center, the demand will be Rs 19,000 crore.


 2 Special Festival Advance Scheme

 The government wants to use the festive season exactly to increase demand. Finance Minister Nirmala Sitharaman said there was no provision for advance till the seventh pay commission came. An advance scheme was run for this. The government has once again come up with a special festival advance scheme. The scheme provides for advance payment of Rs. 10,000 to each central employee. Which will be interest free. Which has to be paid in 10 installments. This will be preloaded in the debit card as an advance. It will be a one time advance scheme. Which will just start for this festive season.


 Interest free loans to 3 states

 The central government will provide loans of Rs 12,000 crore to the states. This loan will be given for 50 years. Which will be completely interest free. The loans will be given to the states to complete their projects so that the economy can get a boost.


 RBI tweaks before festive season, no relief on EMI


 Out of this amount, Rs 1600 crore will be given to the North East states. 900 crore will go to Uttarakhand and Himachal Pradesh. The remaining Rs 7,500 crore will go to other states. Rs 2,000 crore will be given to those states which meet the earlier reforms.


 Finance Minister Nirmala Sitharaman said the amount would have to be spent on new or ongoing projects. This debt allows the state to settle the bills of contractors and suppliers. But the entire amount will have to be spent by March 31, 2021. The loan will be given at the current borrowing limit of the states. This means that the loan will be given on top of the amount they get.

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