October 29, 2020

Finance Minister Nirmala Sitaraman announces LTC Cash Voucher and Festival Advance Scheme

The central government today made a big announcement to boost the economy and alleviate economic hardships during the festive season. In this regard, Finance Minister Nirmala Sitaram announced the LTC Cash Voucher and Festival Advance Scheme. Under the scheme announced today, more than 1 crore employees of the Center will be given cash vouchers for Leave Travel Concession (LTC). Apart from this, under the festival advance scheme, employees get up to Rs 10,000 will also be available.

Under this, government employees will get a cash voucher from which they can spend, and this will also boost the economy. Employees of public sector banks will also benefit. The cash payment in lieu of LTC which will be digital and will be for 2018-21. Under this train or plane fare will be paid and it will be tax free. For this the employee’s rent and other expenses should be three times. Similarly, goods or services have to be taken from the seller registered in GST and payment has to be made digitally. The finance minister said this would generate about Rs 28,000 crore in demand economy through the expenditure of central and state employees.

The Finance Minister informed that the Festival Advance scheme is being launched only once again this year. Under this, all types of employees will be given an advance of Rs 10,000, which they can deposit in 10 installments. This scheme will be available until March 31, 2021. It will be given as a prepaid card.

To boost economic activity, the central government has given Rs. 12000 crore interest free loan. The loan must be repaid in 50 years. It will have three parts- the first Rs. 2500 crore will be given to Northeast, Uttarakhand and Himachal. After this, as per the recommendation of the Finance Commission, Rs. 7500 crores will be given to other states. Third, Rs 2,000 crore will be given to states that will implement at least three of the four announced self-reliance schemes. The full loan will be disbursed before March 31, 2021. This will be in addition to the loans already available for the states.

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