HIGHLIGHTS:

  • The government is willing to incentivize such people to induce the demands of the less fortunate
  • Nirmala Sitharaman introduced a proposal of which the first one is Leave Travel Concession (LTC)
  • The employees will also be getting 10 days of paid leave
  • The LTC is expected to increase consumer demand

NEW DELHI: On Monday, Finance Minister Nirmal Sitharaman in a press briefing addressed the media about proposals to stimulate demand in the economy hit by the pandemic. The Finance Minister informed that the savings of Government and organized sectors have increased and the government is willing to incentivize such people to induce the demands of the less fortunate.

Nirmala Sitharaman introduced proposals of which the first one is Leave Travel Concession (LTC) which will allow Central Government Employees to travel in a block of four years comprising one anywhere in India and one hometown or two hometowns. The employees will also be getting 10 days of paid leave. As per the new scheme, the employees will be allowed to encash their vouchers, said Sitharaman.

‘Since the pandemic has halted life and people are not able to travel, employees can choose to spend the money by buying things of their choice,’ said FM Sitharaman. The employees can however spend the amount via digital mode and the item has to attract a GST of 12% or more. The employees need to safely keep the invoice to reimburse it later. The Scheme introduced is valid until March 31, 2021. The LTC is expected to increase consumer demand.