Sets of measures announced to generate consumption demand
Part of: GS Prelims and GS-III – Economy
In news
Union Finance Minister recently announced two sets of measures to generate consumption demand and boost capital spending in the economy.
Key takeaways
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
