News Analysis India

Tag: LTC

  • Government employees get one more gift, 4 big announcements worth 15 thousand crores

    The central government made 4 major announcements within 10 days. Under this, not only government but private employees will also get benefit. Where bonuses have been announced for 30 lakh government employees. At the same time, earlier it was announced to give the benefit of LTC (LTC) cash voucher scheme to government as well as private sector employees. At the same time, now the government has made a big announcement to give the benefit of child care leave to male employees. Union Minister Jitendra Singh said that such government male employees are now entitled to take leave related to child care who are single parents. By implementing these announcements, where people will get rid of the problem of cash in festivals. At the same time, the central government will have an additional burden of Rs 15,312 crore.

    Central Government announced to give Deepavali Bonus for government employees last week. These bonuses will be sent directly to the bank accounts of the employees through direct benefit transfer. This will benefit 30 lakh central government employees. Center said that the payment of this bonus of Rs 3737 crore will start immediately. Under this, 17 lakh non-gazetted employees of the Government’s Commercial Establishments like Railways, Post Office, Defense Productions, EPFO, Employees State Insurance Corporation will be given a Productivity Linked Incentive (PLI) bonus of Rs 2,791 crore. At the same time, 13 lakh employees working in the central government will be given Non-Productivity Linked (Non-PLI) bonus of Rs 906 crore.

  • Bonus gift to 31 lakh central employees on Vijayadashami

    The government is constantly trying to accelerate demand. In this connection, on Wednesday, 21 October, the Cabinet has announced the Productivity and Non-Productivity Linked Bonus for the financial year 2019-20. This announcement of the government will benefit 30 lakh 67 thousand non-gazetted government officials and employees.

    After this announcement, the burden of 3737 crores will increase on the government exchequer. Union Minister Prakash Javadekar said that the bonus will be released in single installment. This amount will be released to all employees and officers before Vijayadashami through direct benefit transfer.

    Earlier, the government had brought LTC Cash Voucher Scheme. As we know, the benefit of live travel compensation is available in the block of 4 years. That block is ending in this year i.e. 2020. People are not getting out of the house due to corona. In such a situation, the government had announced that it can be exploited by spending three times the LTC. Apart from this, festival advance of 10 thousand rupees was also announced, which can be raised by government employees.

  • PM Modi after Nirmala Sitharaman’s Rs 73,000 crore stimulus

    Prime Minister Narendra Modi on Monday praised Union finance minister Nirmala Sitharaman after she annouced measures worth Rs 73,000 crore to stimulate consumer spending in the economy in an effort to fight the slowdown due to the coronavirus pandemic.

    Today’s announcements by FM @nsitharaman Ji are timely moves which will boost consumer spending and sentiment as well as push capital expenditure. These steps will also boost demand in our economy,” PM Modi tweeted.

    Sitharaman’s Rs 73,000 crore package included advance payment of a part of wages to central government employees and cash in lieu of Leave Travel Concession (LTC). She said as much as Rs 11,575 crore would be paid as LTC allowance and advance to these employees on the condition that they spend the amount on non-essential goods before March 31 next year.

    She said the government will give its employees income tax-exempt cash vouchers in lieu of their entitled travel allowances this year. This cash will have to be spent on buying goods that attract 12% or more GST, in a condition which eliminates the possibility of the cash being spent on essential items. The government will also give as a one-time measure give Rs 10,000 salary loan to all its officers and employees as festival advance.

    All these measures are likely to create an additional demand of Rs 73,000 crore,” Sitharaman said, adding the proposals would stimulate demand in a “fiscally prudent way.”

    States would separately be eligible to get Rs 12,000 crore in 50-year interest-free loans for capital expenditure, while the Union government will spend an additional Rs 2,500 crore toward capital expenditure on roads, defence infrastructure, water supply and urban development.

    The government, which had in May announced a Rs 20 lakh crore ‘Aatmanirbhar Bharat’ stimulus package, is pushing ahead with a full opening to try to boost the economy ahead of the usually high-spending festival season.

    A tough lockdown imposed to stem the spread of coronavirus had resulted in the GDP contracting by a record 23.9 per cent during April-June. Analysts have predicted that the economy may be headed for its worst contraction this fiscal.