New Delhi: Emphasising on giving impetus to the economy badly affected due to Corona pandemic and to increase consumer demand in the festive season, the Centre on Monday announced Leave Travel Concession (LTC) Cash Voucher Scheme, Special festival Advance Scheme for Central employees and additional Rs 37,000 crore capital expenditure and said that these measures will help in increasing the demand of about Rs one lakh crore.
Addressing a press conference here, Union Finance Minister Nirmala Sitharaman along with her deputy Anurag Thakur, announced stimulus to boost demand in the Economy and highlighted that the total demand boost due to today’s measures is expected to be more than Rs 1 lakh crore.
She said, ”Today’s solution should not cause tomorrow’s problem and maintained that the government has kept in mind that measures to stimulate demand must not burden the citizen with future inflation or put government debt on an unsustainable path.
Announcing measures to Stimulate Consumer Spending, Ms Sitharaman said proposals to stimulate consumer spending has two components — LTC Cash Voucher Scheme and Special Festival Advance Scheme.
Under LTC Cash Voucher Scheme, government employees can opt to receive cash amounting to leave encashment plus 3 times ticket fare, to buy something of their choice.
The items bought should be those attracting GST of 12 per cent or more. Only digital transactions are allowed, GST Invoice to be produced.
The biggest incentive for employees to avail the LTC Cash Voucher Scheme is that in a four-year block ending in 2021, the LTC not availed will lapse, instead, this will encourage employees to avail of this facility to buy goods which can help their families.