LUCKNOW: Handing out a festival bonanza for its employees on Friday, the state government announced two special schemes — interest-free advance and a special financial package in lieu of leave travel allowance. The twin incentives are likely to put a financial burden of Rs 2,000 crore on state coffers.
The state cabinet’s nod to the festival package is similar to Union finance minister Nirmala Sitharaman’s recent announcements for Central government employees to “shore up their finances in festival season and encourage spending to boost the economy”.
The scheme, which will be in place till March 31, 2021, allows employees to request Rs 10,000 advance before any major festival.
The amount will be disbursed through State Bank of India RuPay cards which will be repayable in not more than 10 instalments. An official said, the advance will be sanctioned against restricted and public holidays in the festive season declared by the UP government.
If practical problems crop up during implementation, a final decision will be taken by the cabinet after the chief minister’s approval.
The second scheme allows state government employees to avail of a special cash package instead of LTA, since majority staff have been unable to travel due to the Covid-19 pandemic. This will be applicable to employees who are eligible for LTA till March 31, 2021. And Rs 6,000 per person has been approved as deemed return fare and will be given for a maximum of four persons in a family. To avail this benefit, an employee has to spend four times the money claimed in digitally purchasing an item from a vendor, who is registered under GST and the item purchased has minimum 12% GST levy.
Employees would have to present purchase vouchers, which mention the GST number and tax charged for funds to be sanctioned.
The government said, 50% of the claimed amount will be issued as advance in the employee’s bank account and final payment will be made after submission of vouchers. The claim has to be made within the financial year. However, if vouchers are not presented after issue of the advance, the amount will be recovered with penal interest. The amount released under the special cash package will be taxable like LTC.