The central government is likely to add colors of happiness ahead of Holi for employees. The government might announce a Special Festival Advance Scheme before Holi to increase consumer spending in the economy and fight the slowdown due to the ongoing COVID-19 pandemic. The government, under this scheme, might give Rs 10,000 to the central employees before Holi. This means that before the festival of Holi, central employees can avail an amount of Rs 10,000 as advance.
Central government employees will not have to pay any interest on this amount. The interest-free advance amount will allow employees to spend the amount during the upcoming festival season. This will also result in boosting the businesses and beating the slowdown in the economy.
The government had announced this scheme for the central employees, last year too. Hence, it is expected that the government may announce the same scheme again.
This advance being given for festivals will be pre-loaded. This money will already be recorded in the account of central employees. Central employees will have the facility that they can return the amount of Rs 10,000 in 10 installations from their salary. It can be paid in monthly installments of just Rs 1,000.
According to the sources aware of the development, an allocation of about Rs 4,000-5,000 crore can be announced under the Special Festival Advance Scheme. If announced, the employees will be provided with a pre-loaded RuPay Card of the advance amount of Rs 10,000. The employees will be able to spend the advance amount in digital mode only.
The government will bear the Bank charges of the card. With the Special Festival Advance Scheme, the government is aiming to ensure a large number of digital modes of payment during festivals. This will also result in tax revenue and encourage honest businesses.
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