To spur consumer demand, Finance Minister Nirmala Sitharaman on Monday announced Special Festival Advance Scheme and LTC cash voucher scheme for all central govt. employees.
Addressing a press conference, Sitharaman said, “Special Festival Advance Scheme is being revived as a one-time measure. All central govt. employees can now get interest-free advance of Rs. 10,000, recoverable in maximum 10 installments.”
“Under the LTC Cash Voucher scheme, government employees can opt to receive full payment for leave encashment of 10 days (pay+DA) plus tax-free payment of fare in three flat-rate slabs as per the class of entitlement. Employees opting for this scheme will be required to buy goods/services worth three times the fare and one time leave encashment. Goods or services purchased should be attracting GST of 12% or more. The purchase should be made from a GST registered vendor through digital mode. Money should be spent before 31st March 2021,” Sitharaman said.
Sitharaman further said, “The LTC Cash Voucher Scheme has the potential to generate demand worth about Rs 28,000 crore.”
“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,” Sitharaman added.