Thursday, July 3, 2025
spot_img

FM announces LTC Cash Voucher Scheme for govt, PSU employees

Date:

Share post:

spot_imgspot_img

NEW DELHI: Coming up with the much anticipated demand boosting measures, Finance Minister Nirmala Sitharaman on Monday announced a ‘Cash Voucher Scheme for leave travel concession (LTC) for government employees and staff of state-run organisations.

The scheme will generate additional consumer demand of around Rs 28,000 crore, Sitharaman said.

Central government employees get LTC in a block of four years — one travel to anywhere in India and one hometown or two for home town visits. Air or rail fare, as per pay scale or entitlement, is reimbursed and in additional leave encashment of 10 days (pay and dearness allowance) is paid.

Due to Covid-19, employees are not in a position to avail of the LTC in the current block of 2018-21.

The government has therefore made full cash payment on leave encashment and payment of fare in three flat-rate slabs depending on class of entitlement, including making the fare payment tax free.

An employee opting for this scheme, would be required to buy goods or services worth 3X the fare and one time the leave encashment before March 31, 2021.

The money must be spent on goods attracting GST on 12 per cent or more from a GST registered vendor through digital mode and GST invoice will be required to be produced.

Sitharaman said that if central government employees opt for its, 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.

The tax concession will be allowed for state governments and private sector too, for employees who currently are entitled to LTC, subject to guidelines in the Central Government scheme.

Demand infusion in the economy by central government and Central PSUs and PSBs employees is estimate to be around Rs 19,000 crore. Demand infusion by state government employees will be Rs 9,000 crore.

spot_imgspot_img

Related articles

Satellite township project: Assam Cong leader moves Commission over ‘threat’ to indigenous communities

Guwahati, July 3: Assam Congress leader Debabrata Saikia has sought the intervention of the National Commission of Scheduled...

2nd Test: Gill unbeaten on 168, Jadeja makes 89 as India reach 419/6 at lunch

Birmingham, July 3: Skipper Shubman Gill continued to be serene in his knock to be unbeaten on 168,...

India will soon be world’s third-largest economy: PM Modi

Accra, July 3: Prime Minister Narendra Modi on Thursday said that over the past decade, India has seen...

In Ghana, PM Modi pays tribute to revered African leader Kwame Nkrumah

Accra, July 3: Prime Minister Narendra Modi on Thursday visited the Nkrumah Memorial Park in Ghana's capital Accra...