New Delhi: Finance Minister Nirmala Sitharaman today (October 13) addressed the media. She said the pandemic has affected economy.
In her address, she said that Govt will be providing Rs 25,000 cr in addition to Rs 4.13 lakh crore budgeted for roads, defence infra, water supply, urban development.
She also said that under LTC Cash Voucher Scheme, govt. employees can opt to receive cash amounting to leave encashment + 3 times ticket fare, to buy something – items which attract #GST of 12% or more. Only digital transactions allowed, GST Invoice to be produced.
Here is what FM Nirmala Sitharaman said
# We estimate that the measures announced today, for boosting consumer spending and capital expenditure, will boost demand by Rs 73,000 crores, to be spent by March 31, 2021: Finance Minister Nirmala Sitharaman
# An additional budget of Rs 25,000 cr will be provided for capital expenditure of Centre on roads, defence, infrastructure, water supply, urban development and domestically produced capital equipment: FM Nirmala Sitharaman
# Even if 50% of the States opt to give this facility, we think that this will bring in Rs 9000 crores: Finance Minister Nirmala Sitharaman
# If Central govt employees opt for it, this will cost around Rs 5,675cr. The employees of PSBs & PSUs allowed to avail this facility, and for PSBs & PSUs the cost will be Rs 1,900 crores. The demand infusion in the economy by central govt & PSUs will be approx Rs 19,000 cr: FM
#The one-time disbursement of Special Festival Advance Scheme is expected to amount to Rs. 4,000 crores; if given by all state governments, another Rs. 8,000 crores is expected to be disbursed. Employees can spend this on any festival: Finance Minister Nirmala Sitharaman
# Special Festival Advance Scheme for non-gazetted employees is being revived as a one-time measure, for gazetted employees too. All central govt. employees can now get interest-free advance of Rs. 10,000, in the form of a prepaid RuPay Card, to be spent by March 31, 2021 – FM
# Central govt payout on cash-in-lieu-for-LTC will be Rs 5,675 cr and Rs 1,900 cr for PSUs and banks: FM
# Under LTC Cash Voucher Scheme, government employees can opt to receive cash amounting to leave encashment plus 3 times ticket fare, to buy items which attract GST of 12% or more. Only digital transactions allowed, GST invoice to be produced: FM Nirmala Sitharaman
# Consumer spending related proposal has two components- LTC Cash Voucher scheme and Special Festival Advance Scheme: Finance Minister Nirmala Sitharaman
# Govt to give cash to employees in lieu of LTC ticket fare component for buying items attracting 12 pc or more GST: FM
# To stimulate demand, expenditure will be front-loaded; new schemes include LTC cash voucher scheme and special festival advance: FM
# Indications are that the savings of govt. and organized sector employees have increased, we want to incentivize such people to boost demand for the benefit of the less fortunate: FM Sitharaman on LTC Cash Voucher Scheme to stimulate consumer spending
# Consumer spending related proposal has two components- LTC Cash Voucher scheme and Special Festival Advance Scheme: Finance Minister Nirmala Sitharaman
# The proposals being presented are designed in a way that they can stimulate demand by front-loading/advancing some of the expenditure with some offsetting changes. Others are directly linked to an increase in the GDP: FM Sitharaman
# The pandemic has adversely affected the economy. The needs of the poor and weaker sections addressed in various announcements by the govt. Supply constraints have somewhat eased but consumer demand still needs to be given a boost: FM Nirmala Sitharaman
WATCH
#WATCH: Finance Minister Nirmala Sitharaman addresses media https://t.co/5hFOxm7BbZ
— ANI (@ANI) October 12, 2020
Also Read: Finance Minister Nirmala Sitharaman to chair GST Council meeting today
