Nirmala Sitharaman announces Special Festival Advance and LTC cash voucher to government employees
Published On: Monday, October 12, 2020 | By: Team KnowMyStock
The Finance Minister announced LTC cash voucher scheme ahead of the festive season to boost demand. Additionally, Sitharaman has also announced a one-time Rs 10,000 interest-free festival advance for central government employees through the Special Festival Advance Scheme to increase consumer spending to spur demand in the economy. As part of the announcement, central government employees who get Leave Travel Concession (LTC) for their travels will get an equivalent of the amount even without travelling. They could use the allowance to make purchases of their choice. This will apply to the purchase of goods that attract 12 per cent GST or more and can be spent on buying goods worth three times the fare and equal to the cash encashment. The spending will have to be done by digital mode only.
Every four years, central government employees get LTC to any destination to their choice plus one to their hometown. Since travel is difficult to undertake during the pandemic, the government will pay the entitled fare as cash vouchers which have to be spent by March 31, 2021, she said. The Centre also announced the reintroduction of the festival advance of Rs 10,000 for central government employees. This money will be given to central government employees in a prepaid Rupay Card to be used in any festival till March 31, 2021.
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