Srinagar, Oct 12: Finance Minister Nirmala Sitharaman announced major schemes to boost demands in the country by nearly 73 thousand crore rupees.
Addressing a media briefing in New Delhi, the minister laid out the details of the fiscally prudent proposals to stimulate demand in the economy.
According to news agency KINS, Sitharaman informed that the new proposals aim at giving a thrust of around 36 thousand crore rupees to the consumer demands by the Leave Travel Concession LTC Voucher and Festival advance scheme.
Additionally she said, 37 thousand crore rupees will be infused in the capital expenditure by the Centre and the State Governments.
Briefing about the schemes, the Minister informed that in lieu of the LTC for the 2018-21 block term, payments will be made to the government employees for their 10 day Leave encashment and eligible travel fare.
She informed, the employees opting for the scheme will have to submit GST invoices for purchase of goods or services amounting to three times the value of travel fare in addition to the value of LTC encashment amount.
She said, the amount has to be spent for goods or services attracting GST of 12 per cent or more from a GST registered vendor.
The Finance Minister informed that the new proposal is likely to cost nearly 5 thousand 675 crore rupees to the Central Government. She said, if the proposals are uniformly implemented by the State governments, an overall additional consumer demand to the tune of 28 thousand crore rupees will be generated.
Under the special festival advance scheme, Nirmala Sitharaman said , an interest free advance of 10 thousand rupees will be made available to all government employees. She said, considering 50 per cent states as well adopt the scheme, it is likely to infuse nearly 8 thousand crore rupees in the demand sector.
In her announcement towards special assistance for states for utilisation under capital expenditure, the Finance Minister informed that special interest free loans with a 50 year repayment term and amounting to 12 thousand crore rupees will be disbursed. Under the assistance scheme, 2 thousand 500 crore rupees will be given to the North Eastern States and Northern States Himachal Pradesh and Uttarakhand.
Seven thousand 500 crore rupees will be given to other states in proportion to their share in Finance Commission devolution.
The Minister also announced that an additional amount of 25 thousand crore rupees will be provided by the Centre through capital expenditure on roads, defence infrastructure, water supply, urban development and domestically produced capital equipment.