Government Announces Festival Advance For Employees, Travel Cash Payout

 Government Announces Festival Advance For Employees, Travel Cash Payout

New Delhi: Finance Minister Nirmala Sitharaman today announced Travel(LTC) cash voucher ad special festival advance schemes for the government employees in an attempt to stimulate demand and boost consumer spending ahead of the upcoming festive season.

The Finance Minister made the announcement addressing media on the economic issues facing the country in wake of the coronavirus.

"Indications are those 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," the Finance Minister said.

The government employees under the LTC Cash Voucher Scheme employees can opt to receive cash amounting to leave encashment and 3 times the ticket fare to purchase items that attract GST of atleast 12 percent.

And if the central government employees opt for these benefits, this will cost around 5,675 crores. The employees of the PSB and PSU are also allowed to avail of this facility, and for them, the cost will be 1,900 crores. The demand infusion in the economy will be about 19,000 crores, pointed out the finance minister.

Also, the government has announced that a one-time restoration of the festival advance for the central government employees through the Special Festival Advance Scheme till March 31.

The finance minister's press conference comes at a time when the country's GDP or gross domestic product contracted a record 23.9 percent in April-June period as the quarter fully captured the damage caused by the coronavirus restrictions

Business News With Breaking News And Latest News From India and World follow dailyaddaa, like us on Facebook, Follow us on Twitter, and Subscribe us for Latest Videos