To Boost Demand FM Announce LTA Voucher and Special Festive Advance Scheme
FM Announced following
The proposals to stimulate demand are designed to stimulate demand in a fiscally prudent way
- some of them involve advancing of expenditure, with offsetting changes later
- others are directly linked to increasing GDP
Proposals to stimulate consumer spending has two components
LTC Cash Voucher Scheme
Special Festival Advance Scheme
The other set of proposals involves capital expenditure
Indications are that savings of govt. and organized sector employees have increased, we want to incentivize such people to boost demand for the benefit of the less fortunate
Finance Minister presenting LTC Cash Voucher Scheme to stimulate consumer spending
Under LTC Cash Voucher Scheme, govt. employees can opt to receive cash amounting to leave encashment + 3 times ticket fare, to buy something – items which attract GST of 12% or more
Only digital transactions allowed, GST Invoice to be produced
Estimated cost of LTC Cash Voucher Scheme
For Central govt. : ₹ 5,675 crore
For PSBs & PSUs: ₹ 1,900 crore
Tax concessions for LTC tickets available for state govt. & private sector too, if they choose to give such facility, these employees too can benefit
Special Festival Advance Scheme for non-gazetted employees is being revived as a one-time measure, for gazetted employees too
All central govt. employees can now get interest-free advance of Rs. 10,000, in the form of a prepaid RuPay Card, to be spent by March 31, 2021
The one-time disbursement of Special Festival Advance Scheme is expected to amount to Rs. 4,000 crore; if given by all state governments, another Rs. 8,000 crore is expected to be disbursed
Employees can spend this on any festival
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