LTC cash voucher scheme launched to stimulate economic demand

FM Sitharaman press conference : Finance Ministry launches LTC Cash Voucher Scheme, Special Festival Advance Scheme to boost spending
Nirmala Sitharaman
  • Tax concessions for LTC tickets available for employees of state government and private sector too, if they choose to give such facility, these employees too can benefit, says Finance Minister.
  • If central government employees opt for it, the cost will be around Rs 5,675 crore. Employees of PSBs and PSUs will also be allowed this facility and the estimated cost for them will be Rs 1,900 crore.
  • If the central government and PSUs employees opt for this, it would generate additional spending of Rs 28,000 crore, says Finance Minister.

What is LTC Cash Voucher Scheme?

Under the LTC Cash Voucher Scheme, government employees can opt to receive cash amounting to leave encashment and threetimes ticket fare, to buy something – items which attract GST of 12 per cent or more. Only digital transactions will be allowed under this scheme and GST invoices will have tobe produced.

The government will give cash to central government employees in lieu of LTC ticket fare component for buying items attracting 12% or more GST, says FM.

The proposals to stimulate demand are designed to stimulate demand in a fiscally prudent way. Some of them involve advancing of expenditure, with offsetting changes later, others are directly linked to increasing GDP, saysFinance Minister Nirmala Sitharaman.

FM Sitharaman launches LTC Cash Voucher Scheme and Special Festival Advance Scheme to boost consumer spending.

Today we have some proposals to stimulate demand in the economy, saysFinance Minister Nirmala Sitharaman.

Supply constrains have eased, but consumer demandneeds some boost, says FM Sitharaman.

The Finance Minister starts briefing the media on economic issues.

While some opposition ruled states are demanding that a Group of Ministers be set up to arrive at a decision on the mechanism for funding compensation shortfall, BJP ruled states, which have already opted for the borrowing option given by the Centre, are of the view that they should be given a go ahead so that they can get money quickly.

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