Finance Minister Nirmala Sitharaman introduced Travel (LTC) money voucher and particular competition advance schemes for presidency workers in an try to stimulate demand and increase shopper spending forward of the upcoming festive season. “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,” the Finance Minister mentioned.
Under LTC Cash Voucher Scheme, authorities workers can decide to obtain money amounting to go away encashment and three occasions ticket fare to buy objects that appeal to GST of no less than 12 per cent.
If the central authorities workers go for these advantages, this can price round Rs 5,675 crore. The workers of PSBs & PSUs are additionally allowed to avail this facility, and for them, the price will probably be Rs 1,900 crores. The demand infusion within the financial system will probably be about Rs 19,000 crore, the finance minister identified.
The authorities has additionally introduced a one-time restoration of the competition advance for central authorities workers by the Special Festival Advance Scheme, until March 31. The interest-free advance of Rs 10,000 will probably be given by a pre-loaded Rupay card and be recoverable in 10 month-to-month instalments. This is predicted to generate demand amounting to no less than about Rs eight,000 crore.
The finance minister’s press convention comes at a time when the nation’s GDP or gross home product contracted a document 23.9 per cent within the April-June interval because the quarter absolutely captured the injury brought on by the coronavirus pandemic-related restrictions, and is predicted to shrink an general 9.5 per cent within the present monetary yr by the Reserve Bank of India.