The Union cabinet approved on Wednesday ₹Rs 3,737 million bonus for central government employees. The bonus will benefit 30 lakh of unpublished employees, including those from the autonomous central organization, Union Minister Prakash Javadekar said.
“The Union Cabinet approves the productivity-linked bonus and the non-productivity-linked bonus for 2019-2020. More than 30 lakh unpublished employees will benefit from the bonus announcement and the total financial implication will be ₹3,737 million rupees, “said Union Minister Prakash Javadekar.
The bonus will be delivered in a single installment, via direct profit transfer, before Vijayadashami, Javadekar said. “This will drive demand in the market,” he added.
Finance Minister Nirmala Sitharaman announced on October 12 ₹Demand of Rs 73 billion pushes the economy ahead of the holiday season. Two schemes have been introduced: the LTC cash voucher scheme and the special festival advance scheme for central government and public sector employees.
An employee is eligible for LTC and leaves a 10-day charge to travel to their hometown or any other destination twice in a four-year block. As travel has been restricted in the wake of the coronavirus pandemic, central government employees now have the option to take advantage of the cash equivalent of the entitled LTC fare and license fee. Employees are now eligible to purchase goods and services in lieu of the tax-exempt portion of the LTA or LTC.
But to take advantage of this scheme, an employee must spend an amount equal to the value of the license fee and an amount three times greater than the cash equivalent of the estimated fee, on the purchase of available items or services. Spending must be made via digital mode by March 31 on goods and services that attract GST of 12% or more. The employee will need to obtain a voucher showing the GST number and the amount of GST paid.
Under a special festival anticipation scheme, employees can obtain ₹10,000 interest-free loans that would have to be repaid in 10 installments. The money will be delivered through the RuPay prepaid card that will be deactivated after March 31, 2021. The unused amount will expire and employees will have to return the amount consumed in installments.
“Government measures to stimulate demand must not burden the common citizen with future inflation and must not put government debt on an unsustainable path,” Finance Minister Nirmala Sitharaman previously stated.
The Union Cabinet also approved the adaptation of the Jammu & Kashmir Panchayati Raj Act of 1989. “This measure will help establish the three levels of grassroots democracy as in other parts of the country,” Javadekar said.
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