All Key facts information of Special Festival Interest-Free Advance will be given to you in this article. Union Finance Minister Nirmala Sitharaman recently announced a new scheme named LTC Cash Voucher Scheme. If you are looking for the details of a special festival advance plan then you should read this article from beginning to end. The Central Government has launched the LTC Cash Voucher Scheme under the Special Festival Advance Scheme for government employees. Under LTC Cash Voucher Scheme, government employees can take advance up to Rs 10,000 without any interest. The LTC Cash Voucher Scheme is the first part of the Modi government’s plan to increase consumer demand in the festival season. The LTC cash voucher scheme will generate a demand of around Rs 28,000 crore and in the recession caused by Corona, the Indian economy will benefit greatly.
Highlights of Special Festival Advance Scheme
|Scheme Name||Special Festival Advance Scheme|
|Launched By||Finance Minister Nirmala Sitharaman|
|Benefits||Advance profit on festivals|
|Category||Central Govt. Scheme|
Special Festival Advance Scheme
The Special Festival Advance Scheme has been launched to boost the Indian economy in the festive season. Under the LTC Cash Voucher Scheme, all central government employees can take interest-free cash up to Rs 10,000 as a pre-rupee card to be spent till 31 March 2021, which will have to be repaid in a maximum of 10 installments. The scheme of festival advance was abolished on the recommendations of the 7th Pay Commission, but now it has been scrapped as a lump sum measure in the demand of the economy and purchasing power of consumers.
- Union Finance Minister Nirmala Sitharaman said that the Special Festival Advance Yojana is being revived for gazetted employees and for non-gazetted employees.
- All central government employees can now take cash up to Rs 10,000 without any interest.
- This money will be spent as a prepaid RuPay card by 31 March 2021.
- He said that the one-time disbursement of the Special Festival Advance Scheme amounted to Rs. 4,000 crores, if all the State Governments are given, then another 8,000 crores is expected to be disbursed.
LTC Cash Voucher Scheme Objective
The main purpose of the government to provide the Special Festival Advance Scheme is to create demand in the economy. This Year the employees can get cash vouchers from the government. Cash vouchers can be used to start the travel concession fare drop-off. Only the GST-rated Items can be purchased through this card. All non-food items must be purchased using these vouchers. Employees can purchase items attracting 12% or more Goods and Services Tax (GST). you can purchase anything in digital mode from GST-registered outlets. In a period of every four years, employees are free to obtain LTC for any destination or even their hometown to provide travel incentives. Cash-in-lie-LTC central government payment will be Rs. 5,675 crore. Also, Rs.1,900 crore will be paid by other public sector undertakings and public sector banks.
Features of LTC Cash Voucher Scheme
- The system of giving advance for the festival to central government employees has been abolished with the 6th Pay Commission.
- This special festival advance scheme has been implemented only for the year 2021 to increase market demand.
- The advance on prepaid Rupees debit card will be given to the employees under this scheme.
- Employees have to pay 10 installments for advance
- The scheme has a budget of 4000 crores rupees.
- Under this scheme, the employees have to spend the monetary benefit before 31 March 2021.
- The employees do not need to pay any interest on this special advance.
- The central government has given interest-free 50-year loans of Rs. 12000 crore to the capital project to the states
Benefits Of Special Festival Advance Yojana
The following benefits will provide to the Central Government employees by the LTC Cash Voucher Scheme: –
- In Special Festival Advance Scheme, the following benefits will be provided to the employees by the Central Government:
- An interest-free advance of Rs 10,000 will be recovered in a maximum of 10 installments
- 10,000 rupees advances will be given as prepaid rupee card
- The benefits of the card and its expenses can be spent only till 31 March 2021.
- Under this advance scheme, the government has decided to distribute Rs 4000 crore.
- If the state government also participates in this yojana a distribution of Rs 8000 crore is likely.
- 50%, which is Rs 4000 crore, is estimated to be adopted by the states.
- The additional consumer demand generated will be Rs 8000 crore.
Eligibility criteria for LTC Cash Voucher Scheme:
The applicant must be a working officer of the Central Government to be eligible for the scheme.
Special Festival Advance Scheme Application Procedure
- First of all, you have to go to the official website of the LTC Cash Voucher Scheme. After this, the homepage of the website will open in front of you.
- On the homepage of the website, you have to click on the option “Apply Now” in the menu. After this, a new form will open in front of you.
- Fill the form with all the relevant details and upload the required documents.
- Cross-check the form and press on Submit tab to apply for the scheme.
We hope that you will definitely find information related to Special Festival Advance Scheme beneficial. In this article, we have tried to answer all the questions you ask.
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