English Hindi October 20, 2020

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Travel Payout, Festival Advance For Government Employees Till March

October 12, 2020 06:58 PM

New Delhi, October 12, 2020
Finance Minister Nirmala Sitharaman on Monday announced two special schemes for government staff in a bid to boost consumer demand: a Leave Travel Concession-related cash voucher and a festival advance.

Employees of central and state governments as well as public sector companies will be able to use these schemes to spend money on festivals of their choice till March 31.

Under the LTC cash voucher scheme, government employees can opt to receive cash amounting to leave encashment and three times the ticket fare to purchase items that attract GST of at least 12 per cent.
This amount can be spend only on buying non-food GST-rated items and the purchases will have to be made in digital mode from GST-registered outlets, the Finance Minister said.

Since travel is difficult to undertake during the pandemic, the government will pay the entitled fare as cash vouchers which have to be spent by March 31, 2021, Ms Sitharaman said.

The Finance Minister also announced the reintroduction of a festival advance for central government employees through the Special Festival Advance Scheme, till March 31. This advance was abolished as per 7th Pay Commission recommendations.

As a one-time measure, an interest-free advance will be given to all officers and employees of the central government, the Finance Minister said.

Under this scheme, an interest-free advance of Rs 10, 000 will be given to government employees through a pre-loaded RuPay debit card. This money will be recoverable in 10 instalments, till March 31.
- Agencies

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