Ahead of the festive season, the central government in a bid to augment consumer spending and stimulate demand in the economy has announced a festival advance of Rs 10,000 to all its employees and officers while rolling out the LTC Cash Voucher scheme.
Under the Special Festival Advance Scheme, all central government employees, both gazetted and non-gazetted, are entitled to get an interest-free festival advance of up to Rs 10,000 in the form of a pre-paid RuPay Card to be spent by March 31, 2021, and recoverable in maximum 10 instalments.
The scheme of festival advance was abolished on recommendations of the 7th Pay Commission, but is now been revoked as a one-time measure to spur the demand in the economy and purchasing power of consumers.
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Addressing a press conference, Finance Minister Nirmala Sitharaman said, “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.”
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 – FM pic.twitter.com/uvbcgm66iI
— Prasar Bharati News Services (@PBNS_India) October 12, 2020
“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,” she added.
In addition to the festival advance scheme, the Centre has rolled out the LTC Cash Voucher Scheme to spur the consumer demand under which central government 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.
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Tweeting about the LTC Voucher Scheme, the Union Finance Minister said, “The LTC Cash Voucher Scheme is the first part of the Modi Govt’s plan to spur consumer demand. The LTC Cash Voucher Scheme has the potential to generate demand worth about Rs 28,000 crore.”
The LTC Cash Voucher Scheme has the potential to generate demand worth about Rs 28,000 crore. (2/2) pic.twitter.com/I7142bzjig
— NSitharamanOffice (@nsitharamanoffc) October 12, 2020