The federal government brings excellent news to all its staff on the event of festivals. On Monday, Finance Minister Nirmala Sitharaman stated that the bonus shall be given prematurely for the expenditure to extend the demand within the economic system. She introduced the LTC Money Voucher Scheme and Particular Pageant Advance Scheme.
What’s the Particular Pageant Advance Plan?
The federal government has determined to present an interest-free advance of Rs 10,000 to all its officers and staff on festive events. The federal government has taken this step as a part of a plan to extend demand within the economic system by rising client spending.
How lengthy are you able to spend 10,000 rupees?
This advance of Rs 10,000 shall be within the type of a pre-paid RuPay card. The Particular Pageant Advance Scheme is offered for the subsequent six months. The cash must be spent by 31 March 2021.
She stated that the workers must spend this advance in 10 instalments. The federal government will spend Rs 4,000 crore on this scheme. On the similar time, if the state additionally comes, further client demand of Rs 8000 crore shall be created.
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What’s LTC Money Scheme?
Each 4 years, the federal government provides LTC to its staff to journey to the specified vacation spot. Moreover, an LTC is given to them to go to their residence state. LTC is exempted underneath the revenue tax act topic to sure circumstances. The exemption is allowed for less than two travels inside a block of 4 years.
To spice up the demand within the economic system, the federal government has introduced a money voucher in lieu of Depart Journey Concession (LTC) to its staff this yr. These vouchers can solely be used to buy non-food objects that appeal to Items and Providers Tax (GST). The Authorities staff can now buy items and companies in lieu of the tax-exempted portion of the Depart Journey Concession. The Finance Minister stated that staff can use these vouchers to purchase merchandise on which the GST charge is 12 per cent or extra.
Sitharaman stated it’s troublesome for workers to journey this yr as a result of Covid-19 pandemic. In such a scenario, the federal government has determined to present staff money vouchers. They must be spent this by 31 March 2021.
How a lot will the federal government spend?
The federal government will spend Rs 5,675 crore for LTC. On the similar time, the central public sector undertakings and banks must spend Rs 1,900 crore. The Finance Minister stated that the transfer would generate a complete demand of Rs 19,000 crore. If half the states present these advantages to their staff, an extra demand of Rs 9,000 crore can be created.