Finance Ministry Estimates Rs 73,000 Crore Demand Boost Before 31 March 2021, Here Are The Key Announcement
Finance Minister Nirmala Sitharaman in her press-conference today (12 October) said that the government estimates a demand boost of Rs 73,000 crore before 31 March 2021 via its newly announced schemes.
The total additional demand is expected to exceed Rs 1 lakh crore.
The Finance Minister announced demand boosting measures like a LTC voucher scheme, a one-time revival of the special festival advance scheme, a 50 year interest free loans for states to the tune of Rs 12,000 crore as special assistance for capital expenditure.
Also a Rs 25,000 crore additional budget was announced for the Centre to utilise on capital expenditure on roads, defence infrastructure, water supply, urban development and defence infrastructure.
Out of these Rs 73,000 crore, Rs 36,000 crore additional consumer demand is expected to be generated through the LTC voucher scheme and the special festival advance scheme. The remaining Rs 37,000 crore will be in the form of additional centre and state capital expenditure.
The funds from the interest free loan to states can be utilised for new or ongoing capital projects or for the settling of contractor or supplier bills. The loan repayment period will begin after 50 years and no loan servicing is required until that time.
Under this LTC voucher scheme the beneficiaries opting for the same will be required to buy goods and services worth three times the fare encashment and equivalent to the leave encashment.
The transactions will also have to be made digitally and goods entailing a GST of 12 per cent or more can be brought from GST registered vendors. These purchases need to be made by 31 March 2021.
The special festival advance scheme will be interest free and both gazetted and non-gazetted officials will be able to draw an advance of Rs 10,000 which needs to be paid back in ten instalments.
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