LTC vouchers, festival advance to boost demand : The Tribune India

Tribune press service

New Delhi, October 12

The Union Government on Monday announced a one-time interest-free festival advance of Rs 10,000 and cash vouchers in lieu of LTC for its employees as part of a Rs 73,000 crore stimulus package to boost businesses. consumer spending.

Addressing a press conference, Union Finance Minister Nirmala Sitharaman said 50-year interest-free loans of Rs 12,000 crore would be provided to states for expenditure on capital projects. The LTC program and the advance of the festival are accompanied by riders. As travel is limited, the program mandates purchases worth three times the fare and one time vacation cashing by March 31, 2021. Vouchers will need to be spent on goods that attract 12% or more of GST – a condition that eliminates the possibility of money spent on groceries.

To help poor people

We want to inspire people to drive demand for the benefit of the less fortunate. —Nirmala Sitharaman, FM

Rs 450 cr for HIMACHAL

Of the 50-year loans of Rs 12,000 crore to the states, Himachal Pradesh and Uttarakhand will get an insured loan of Rs 450 crore each. The eight northeastern states will also receive Rs 200 crore each.

The cost of the center will be Rs 5,675 crore and its extension to PSU and bank staff will cost another Rs 1,900 crore. The interest-free advance will be preloaded on RuPay cards and will be repayable in 10 installments. The government will bear the bank charges. The expenditure is estimated at Rs 4,000 crore and Rs 8,000 crore more, if the states follow suit. The two measures would generate consumer demand of Rs 28,000 crore, Sitharaman said.

The actual result of today’s announcements is around Rs 11,500 crore for individuals and Rs 12,000 crore for states. An additional capital expenditure of Rs 25,000 crore was passed by Parliament last month. The rest is based on the assumption of a three-fold multiplier effect and the expectation that states and UAPs will grant similar concessions.

The 50-year loan to the states will consist of three parts. The former provides Rs 200 crore each for eight North Eastern states and Rs 450 crore each for Himachal and Uttarakhand. The second allocates Rs 7,500 crore to other states under the vesting formula. Under the third part, Rs 2,000 crore will go to states carrying out at least three of the four reforms under the Aatmanirbhar Bharat package. Sitharaman also included Rs 25,000 crore announced in the supplementary budget last month to this mini stimulus package.

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