Sets of measures announced to generate consumption demand
Part of: GS Prelims and GS-III – Economy
- Union Finance Minister recently announced two sets of measures to generate consumption demand and boost capital spending in the economy.
- Leave Travel Concession (LTC) Cash Voucher Scheme: The Government has decided to give cash payment to employees in lieu of one LTC during 2018-21. Full payment on Leave encashment and tax-free payment of LTC fare depending on class of entitlement will be given.
- Special Festival Advance Scheme: It was meant for non-gazetted government employees. It 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.
- Capital Expenditure Boost for States: A special interest-free 50-year loan to states is being issued. For ₹ 12,000 crore capital expenditure which is to be spent by March 31, 2021: (1) ₹ 200 crore each for 8 North East states; (2) ₹ 450 crore each for Uttarakhand, Himachal Pradesh; (3) ₹ 7,500 crore for remaining states, as per share of Finance Commission’s devolution