Special Festival Advance Scheme 2020 for Govt employees

Special Festival Advance Scheme 2020 for Govt employees (benefits, claim amount, 10000 rs, form)

 Central government of India has decided to provide festival bonus for the employees who work under central government of India. The Finance Minister Nirmala Sitharaman announced on 12th October, 2020 announced the scheme called Festival Advance Scheme as a revive as one-time measure citing that in 7th pay commission government has abolished such facility. Considering the present situation when the entire economy is suffering from a great loss due to pandemic, government has decided to launch such scheme.

As per the rule of the scheme, the advances will be cleared by 31st January, 2021 till the time of festivity. Here we are going to point out few features of the scheme to impart information.

Special Festival Advance Scheme

Launch details

Name of the scheme

Special festival advance scheme

Launched in

India

Launched by

Union Finance Minister Nirmala Sitharaman

Date of launch

12th October, 2020

Target people

Central government employees

Salient features of the scheme

  • Amount of advance- The central government employees will get 10,000 rupees as advance that too in 10 installments.
  • Mode of payment- The money will be given to the rupay card holder that is valid till 31st March, 2021.
  • Disbursement- the finance department has earmarked 4000 crore rupees provision for the scheme.
  • Merging states’ funds- It is said that if the state governments show interst in the scheme then there will be 8000 crore rupees disbursement as the state will be carrying 50% of the responsibility to provide advance to the central government employees.
  • Demand generation- Through the scheme the demand will be generated and that will be of 8000 crore rupees.

Benefits of the scheme

  • As per the Finance Minister of India Nirmala Sitharaman the saving of the government employees and employees of organized sector has increased lately. And that is the reason government is trying to increase the demand among them so that unorganized sector gets some privileged.
  • Under the LTC cash voucher scheme the government employees will get to draw money that is three times higher than the actual money if they want to spend in goods that carry 12% of GST. However, the facility will be applicable only on non-food items. Apart from that the payment mode has to be digital and from the GST registered shops.
  • As the money was wasted which was seemingly allotted for leaves due to corona virus outbreak, will be invested in improving economy. The encashment of travel money will be available till 31st March, 2021.
  • In order to implement the facility government has to spend 5,675 crore rupees and to improve the market govt. has asked the public sector companies that are mostly the state run banks to implement similar thing.
  • The government employees will get an interest-free facility that will help them to purchase goods from the GST registered shops.

It is a one-time measure scheme that will encourage people to shop. When the country’s economy has faced the worst decline, Finance Minister of India came up with such scheme to revive the unorganized sector. In April-June the GDP or gross domestic product was plummeted by 23.9%. A lot of damage has happened due to the sudden outbreak of Corona virus and a large number of people were left jobless. The businesses have seen a stall due to the prolonged lockdown. So, coming up with such scheme will be beneficial for the economy collectively as it will effectively increase the demand among the people.

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