The Big gift given by the finance minister to these employees before Diwali will be happy to hear the announcement
Finance Minister Nirmala Sitharaman has made some big announcements to revive the country’s economy and increase demand in the Corona crisis. The Finance Minister has proposed three main steps to increase demand in the country. This includes everything from LTC to advance the scheme of central employees. Let’s understand them one by one.
LTC Cash Voucher Scheme
With this cash vouchers, the central employee can buy any goods or services. But it will have to spend three times the amount of LTC. The employee will have to buy only those goods which attract 12% or above GST. The goods have to be taken only from GST registered vendors. The invoice will also be shown where the employee has spent, only then he will get a discount. Apart from this, the 10 days leave encashment received by the central employees will also have to be spent. He will have to spend all these expenses by 31 March 2021. All these expenses and purchase payment should be in digital mode only.
Let us tell you that every four years the central employees get LTC to visit their choice once and go to their hometown once, but due to the Corona crisis, they could not go anywhere this time. So the government will now give the rent in the form of cash vouchers to the employees, which they have to spend till 31 March 2021. The government hopes that this will increase spending in the country.
This scheme will provide Rs 5,675 crore to the central employees. If government companies and government banks also implement it, then 1900 crore more rupees will be found. If the state governments and the private sector also accept this point of the Center, then the demand of Rs 19,000 crore will be generated.
Special Festival Advance Scheme
The government wants to capitalize on the festive season to increase demand. Finance Minister Nirmala Sitharaman said that when the Seventh Pay Commission came, there was no provision for advance, for which the advance scheme was run. The government has once again brought the Special Festival Advance Scheme. Through this scheme, a provision has been made to give advance of Rs 10,000 to every central employee. This will be an interest-free advance, which can be repaid in 10 installations. This advance rupee will be pre-loaded on the debit card. This will be a one-time advance scheme, which will start only for this festive season.
Interest-free loan to states
The central government will give a loan of Rs 12,000 crore to the states. This loan will be given for 50 years, which will be completely interest-free. States will be given this loan to complete their projects so that the economy can get some speed.
Out of this amount, Rs 1,600 crore will be given to the North-East states, 900 crores will be given to Uttarakhand and Himachal Pradesh. The remaining 7500 crore rupees will be given to other states. 2000 crores will be given to those states which fulfill the reforms given earlier.
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Finance Minister Nirmala Sitharaman said that this amount will have to be spent on new or ongoing projects. With this loan, states can settle the bills of contractors and suppliers, but the entire amount will have to be spent by 31 March 2021. This loan will still be above the state borrowing limit. That is, this loan will be given on top of the loan they get. This loan will have to be repaid after 50 years.
The finance minister's other big announcement was the relaxation of ECB standards for the housing sector. Pila believes this will stimulate the appetite of home buyers and the region.
"The second step announced by the NDA government is to further relax the ECB's norms to boost the affordable housing sector. The amendment will definitely stimulate the appetite of home buyers and the affordable housing sector," he added.
In addition, joining 10 years of government securities will reduce interest on building construction
advances.
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Other key steps announced by Sitharaman include expanding the scheme of tax and duty reimbursement for export promotion, fully automatic electronic refund for input tax credits in GST, improving priority sector lending standards for exports and increasing the scope of export credit insurance. Scheme (ECIS). It also announced a reduction in the turnaround time for exports by giving Sitaram the benefit of technology and giving it a benchmark at Boston and Shanghai ports.