Finance Minister Nirmala Sitharaman on Monday announced a cash voucher for Central Private Employees in lieu of holiday travel discount (LTC) fare which can only be spent on food-GST-rated items. FM Sitharman said workers will be able to buy items that attract 12 percent or more Goods and Services Tax (GST). These purchases have to be made in digital mode from GST-registered outlets.
Encourage public sector employees
Every four years, central government employees receive LTCs at any destination of their choice in their own city.
As it is difficult to travel during the epidemic, the government will pay the rent in cash vouchers, which must be paid by March 31, 2021, he said. The LTC voucher scheme aims to mobilize the contribution of public sector employees to recover the demand of the country.
The government has said that the LTC voucher scheme will encourage demand source ₹28,000 crore.
Central government employees get LTC in 4 year block (anywhere in India and for one or two people). Air or rail fares are paid according to the pay scale / entitlement and in addition, 10 days leave (pay + DA) is provided.
Financial improvement in the economy
“If the central government employees choose it, the cost will be around Rs 5,67575 crore. PSB and PSU employees will also be given this facility and the estimated cost for them will be Rs 1,900 crore,” FM said.
FM added that tax exemptions would also be allowed for the state government / private sector, which currently owns the LTC, following the guidelines of the central government project.
It is estimated that the central government and central PSE / PSB employees will provide Rs. About Rs 19,000 crore. The amount demanded by state government employees will be Rs. 9,000 crore.
Excessive consumer demand is generated per kg. 28,000 crore.