In an attempt to provide relief to the ailing economy amidst the Coronavirus pandemic, Union Finance Minister Nirmala Sitharaman subsequently announced two policy measures
The two policies namely- LTC Cash Voucher Scheme and Special Festival Advance Scheme will primarily benefit central government employees and probably increase consumer spending
"Special Festival Advance Scheme for non-gazetted employees is being revived as a one-time measure, for gazetted employees too. All central govt. employees can now get an interest-free advance of Rs 10,000, in the form of a prepaid RuPay Card, to be spent by March 31, 2021," Sitharaman said.
Under the LTC Cash Voucher scheme, government employees can opt to receive cash amount to leave encashment plus three times the ticket fare, to buy items which attract a GST of 12 per cent or more. However this scheme will be valid only for digital transactions and a GST invoice will have to be presented as well
Photo Credits- The Hi