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Centre announces bonus for 30 lakh govt employees

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The Union Cabinet on Wednesday approved bonus for 30.67 lakh Central government employees for the year 2019-20. The announcement in this regard by Union minister Prakash Javadekar has brought an end to the uncertainty over the issue amid the festive season.

The decision to offer bonuses will cost the exchequer around Rs 3,737 crore, the minister revealed during the Cabinet meeting headed by Prime Minister Narendra Modi.

In a tweet, Prakash Javadekar said that as per the decision of the Union Cabinet, 30 lakh non-gazetted central government employees will be given bonus before Vijayadashami or Durga Puja. He added that the bonus will be provided through direct benefit transfer.

Notably, the Cabinet has approved productivity linked and non-productivity linked bonus for the year 2019-20.

The announcement by Prakash Javadekar comes a few days after the Centre announced travel cash voucher and special festival advance scheme for government employees on October 12. The schemes are aimed at stimulating demand and boosting consumer spending during the festive season.

LTC cash voucher scheme

Under the LTC cash voucher scheme, the government employees can decide to receive cash amounting to leave encashment and 3 times of the ticket fare to purchase items that attract a minimum GST of 12 per cent.

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The government clarified that if central government employees decide to opt for the scheme, it will cost the government around Rs 5,675 crore.

Festive advance scheme

Also, in a bid to facilitate government employees to meet expenses during the festive season as well as boost demand, the Union government has announced a one-time restoration of the festival advance. Under the special festive advance scheme, government employees can take an interest-free advance of Rs 10,000 that will be recovered in 10 monthly installments.

Crucial time

While the festivities are around the corner, the market is not witnessing any major demand across the majority of the sectors. This is due to the coronavirus pandemic that has left many people unemployed and many businesses had to shut down after being unable to cope up with the impact of the pandemic. The Indian economy also took a serious beating with the gross domestic product, or GDP, declining by over 23 per cent in the April-June quarter.

In such a situation, the government is desperately trying to generate demand in the market so that the economy could recover from the effect of the coronavirus pandemic.

 

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