LTC Cash Vouchers Scheme & Special Festival Advance Scheme for Government Employees – Finance Minister Announces Schemes

HomeNewsLTC

LTC Cash Vouchers Scheme & Special Festival Advance Scheme for Government Employees – Finance Minister Announces Schemes

LTC Cash Vouchers Scheme & Special Festival Advance Scheme for Government Employees – Finance Minister Announces Schemes Finance Minister Nirma

LTC Cash Voucher and Festival Advance Scheme: Govt employees can make purchases in family member’s name
Timely payment of dues of encashment of leave to Government servants retiring on attaining the age of superannuation — need to obviate delays in payment of such dues
Leave Encashment and Gratuity for pensioners who retired between January 2020 and June 2021: Fin Min OM dated 07.09.2021

LTC Cash Vouchers Scheme & Special Festival Advance Scheme for Government Employees – Finance Minister Announces Schemes

ltc-cash-vouchers-scheme-special-festival-advance-scheme-for-government-employees-finance-minister-announces-schemes

Finance Minister Nirmala Sitharaman today addressed the media on key economic issues. The following schemes are announced for Central Government Employees in this meeting :

LTC Cash Voucher Scheme
Special Festival Advance Scheme

1A) LTC Cash Voucher Scheme

Under LTC Cash Voucher Scheme, government employees can opt to receive cash amounting to leave encashment + 3 times ticket fare, to buy something of their choice. The items bought should be those attracting GST of 12% 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.

Estimated cost of LTC Cash Voucher Scheme: For Central govt. : ₹ 5,675 crore; for PSBs & PSUs: ₹ 1,900 crore.

Tax concessions for LTC tickets available for state govt. & private sector too, if they choose to give such facility, these employees too can benefit

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. On a conservative basis, we expect the LTC Cash Voucher Scheme to generate additional consumer demand in the range of ₹ 28,000 crore.

– Union Finance Minister Smt. Nirmala Sitharaman

View: LTC Cash Vouchers Scheme: Special cash package equivalent in lieu of Leave Travel Concession Fare for Central Government Employees – FinMin OM Dt. 12 Oct 2020

1B) Special Festival Advance Scheme

Special Festival Advance Scheme which was meant for non-gazetted government employees is being revived as a one-time measure, for gazetted employees too. All central govt. employees can now get interest-free advance of Rs. 10,000, in the form of a prepaid RuPay Card, to be spent by March 31, 2021.

The one-time disbursement of Special Festival Advance Scheme is expected to amount to Rs. 4,000 crore; if given by all state governments, another Rs. 8,000 crore is expected to be disbursed. Employees can spend this on any festival.

Grant of Advance – Special Festival Package to Government Servants: FinMin Order Dtd 12 Oct 2020

PIB

COMMENTS

WORDPRESS: 0