“Finance minister Nirmala Sitharaman on Monday declare LTC cash voucher scheme and special festival advance scheme for government employees with an objective to grow consumer spending”.
Union finance minister Nirmala Sitharaman on Monday convey a press conference ahead of the Goods and Services Tax (GST) Council meeting she is arrange to chair at 4pm.
Sitharaman declared proposals regarding consumer pay out and capital dissipating. Under consumer pay out, she announced proposals within two elements –LTC cash voucher scheme and special festival advance scheme.
Leave Travel Concession (LTC) Cash Voucher Scheme:
- Central government workers get leave travel privilege in a block of four years–one each to a station of choice and home town or two for home town.
- Under this, the air or rail fare is recompense as per pay scale/claim. Also, a leave encashment of ten days (pay + dearness allowance) is paid.
- However, workers will not be able to utilize the LTC in the 2018-21 year block due to the ongoing Covid-19 pandemic. This is where the LTC will sake government employees.
- In lieu of one LTC during 2018-21, employees will get cash payment. There will be full remission on leave encashment and fare will be paid as per three slabs hang on upon the class of title. Additionally, there will be no tax on fare payment.
- An employee opting for this scheme will have to buy goods and services assistance three times the fare and one time leave encashment, and do so prior to March 31, 2021.
- The money is to be finished on goods send GST of 12% or more and only digital payments will be recognized. Also, employees will have to provide GST invoice.
- The finance minister said the scheme would cost Rs 5,675 crore if central government employees go for it. However, granted PSB and PSU workers, its cost would be Rs 1,900 crore.
- Sitharaman additional projected that with even 50% states choosing for this scheme, the government anticipate to charge Rs 9,000 crore into the economy.
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