Thread by @PIBMumbai

Finance Minister @nsitharaman will address a press conference on economic issues, at 12.30 PM today, at National Media Centre, @PIB_India HQ, New Delhi

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LIVE shortly: Press conference by Finance Minister @nsitharaman

LIVE now: Press conference on economic issues, by Finance Minister @nsitharaman

Some proposals to stimulate demand in the economy are being presented

Needs of the poor and weaker sections have been addressed in the #AatmaNirbharBharat package, supply situation has improved, but consumer demand needs ot be given a boost - Finance Minister @nsitharaman

The proposals to stimulate demand are designed to stimulate demand in a fiscally prudent way

- some of them involve advancing of expenditure, with offsetting changes later

- others are directly linked to increasing GDP

- announces Finance Minister @nsitharaman

Proposals to stimulate consumer spending has two components

🔯LTC Cash Voucher Scheme
🔯Special Festival Advance Scheme

The other set of proposals involves capital expenditure

- @nsitharaman

Indications are that 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

- Finance Minister @nsitharaman, presenting LTC Cash Voucher Scheme to stimulate consumer spending

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

- FM @nsitharaman

Estimated cost of LTC Cash Voucher Scheme

For Central govt. : ₹ 5,675 crore

For PSBs & PSUs: ₹ 1,900 crore

Tax concessions for LTC tickets available for state govt. & private sector too, if they choose to give such facility, these employees too can benefit - @nsitharaman

On a conservative basis, we expect the LTC Cash Voucher Scheme to generate additional consumer demand in the range of ₹ 28,000 crore

- informs Union Finance Minister @nsitharaman

https://twitter.com/PIBMumbai/status/1315555242487025665

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

The one-time disbursement of Special Festival Advance Scheme is expected to amount to Rs. 4,000 crore; if given by all state governments, another Rs. 8,000 crore is expected to be disbursed

Employees can spend this on any festival

- FM @nsitharaman

https://twitter.com/PIBMumbai/status/1315557280155394048

Capital expenditure - money spent on infrastructure and asset creation - has a multiplier effect on the economy, it not only improves current GDP but also future GDP, we want to give a new thrust to capital expenditure of both states and Centre

- Finance Minister @nsitharaman

We are issuing a special interest-free 50-year loan to states for ₹ 12,000 crore capital expenditure

✅₹ 200 crore each for 8 North East states
✅₹ 450 crore each Uttarakhand, Himachal
✅₹ 7,500 crore for remaining states, as per @15thFinCom devolution

- Finance Minister

Both Part 1 and Part 2 of interest-free loans given to states are to be spent by March 31, 2021

50% will be given initially, remaining upon utilization of first 50%

- FM @nsitharaman

https://twitter.com/PIBMumbai/status/1315559701652873216

Under Part 3 of ₹ 12,000 crore interest-free loans to states, ₹ 2,000 crore will be given to those states which fulfill at least 3 out of 4 reforms spelled out in #AatmaNirbharBharat package

This is over and above other borrowing ceilings

- Finance Minister @nsitharaman

Additional budget of ₹ 25,000 crore (in addition to ₹ 4.13 lakh crore given in #Budget2020) is being provided for capital expenditure on roads, defence, water supply, urban development and domestically produced capital equipment

- Finance Minister @nsitharaman

We estimate that the measures announced today, for boosting consumer spending and capital expenditure, will boost demand by ₹ 73,000 crore, to be spent by March 31, 2021

- Finance Minister @nsitharaman

Given that private sector spending through LTC tax benefit would be at least ₹ 28,000 crore, we estimate total demand boost due to today's measures to be more than ₹ 1 lakh crore - Finance Minister @nsitharaman

"Today's solution should not cause tomorrow's problem"

- Finance Minister @nsitharaman, stating that the govt. has kept in mind that measures to stimulate demand must not burden the citizen with future inflation or put govt. debt on an unsustainable path

We have assumed that only 1/4th of central govt. employees would be claiming the LTC, if higher, we would be very happy, as it will help the economy

- @FinMinIndia

https://twitter.com/PIBMumbai/status/1315555837008633859

If demand goes up based on the stimulus measures announced today, it will have an impact on those people who have been affected by #COVID19 and are desperately looking for demand to keep their business going - Finance Minister @nsitharaman

The biggest incentive for employees to avail the LTC Cash Voucher Scheme is that in a four-year block ending in 2021, the LTC not availed will lapse, instead, this will encourage employees to avail of this facility to buy goods which can help their families - FM @nsitharaman

Here are the highlights of the stimulus measures announced by Union Finance Minister @nsitharaman today, to boost demand in the economy

“Total demand boost due to today's measures expected to be more than ₹ 1 lakh crore”

📗pib.gov.in/PressReleseDet…

https://twitter.com/PIBMumbai/status/1315563269650812928

Please note that govt. employees opting for LTC Cash Voucher Scheme will get leave encashment & LTC fare as reimbursement, if he/she buys goods/services worth leave encashment + 3 times the fare, before 31st March 2021

Sincere regrets for the error here➡️

https://twitter.com/PIBMumbai/status/1315553596214308870?s=19

In other words, the employee opting for LTC Cash Voucher Scheme will be required to buy goods / services worth 3 times the fare and 1 time the leave encashment before 31st March 2021

Details 📖pib.gov.in/PressReleaseIf…