In an attempt to stimulate demand and boost consumer spending ahead of the upcoming festive season, Finance Minister Nirmala Sitharaman on Monday announced a Travel (LTC) cash voucher and special festival advance schemes for government employees.
“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 said.
“The second portion of the Modi Govt’s plan to generate demand is to do with infrastructure creation. A part of that is a Rs 12,000 crore incentivise to States to increase their capital expenditure,” Finance Minister Nirmala Sitharaman.
“Within this Rs 12,000 crore incentive, Rs 1,600 will be divided equally between eight North Eastern States. Additionally, Rs 900 crore will be divided equally between the Hill States of Himachal Pradesh and Uttarakhand,” the minister said.
“The States not covered in the package for North Eastern and Hill States will receive Rs 7,500 crore, which will be allocated in the same proportion as laid out in the interim report of the 15th Finance Commission for 2020-21,” she said.
“The third portion of the Rs 12,000 crore incentive to States will be a package of Rs 2,000 crore, which will be available to those States that have met 3 of 4 of the conditions related to specific reforms announced in the Aatmanirbhar Bharat Package,” she added.
“The LTC Cash Voucher Scheme is the first part of the Modi Govt’s plan to spur consumer demand.”
“The LTC Cash Voucher Scheme has the potential to generate demand worth about Rs 28,000 crore.”
“The second part of the Modi Govt’s plan to boost consumer demand is a one-time restoration of the festival advance for central govt employees through the Special Festival Advance Scheme. This is expected to generate at least about Rs 8,000 crore of demand,” she said.