Sitharaman Presser Highlights: Govt announces measures worth Rs 1 lakh cr to boost consumption, capex

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 pic.twitter.com/43X77psI3A

PIB in Maharashtra (@PIBMumbai) October 12, 2020

1.23 PM: "Under Part 3 of Rs 12,000 crore interest-free loans to states, Rs 2,000 crore will be given to those states which fulfill at least 3 out of 4 reforms spelled out in Aatma Nirbhar Bharat package. This is over and above other borrowing ceilings," says FM.

1.19 PM: 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%: Sitharaman.

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://t.co/OUIBamTtsH

PIB in Maharashtra (@PIBMumbai) October 12, 2020

1.17 PM: The Centre offers interest-free 50-year loans to States for capital expenditure for Rs 12,000 crores, consisting of three components, says Finance Minister Nirmala Sitharaman

1.15 PM: Sitharaman says the 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. 

1.10 PM: Sitharaman says 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.

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://t.co/xt0cr3MWEE pic.twitter.com/2ZMvKYOoF1

PIB in Maharashtra (@PIBMumbai) October 12, 2020

1.08 PM: "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," says FM Sitharaman.

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 pic.twitter.com/2fc2gSHSR5

PIB in Maharashtra (@PIBMumbai) October 12, 2020

1.07 PM: The government announces Rs 10,000 one-time festival advance scheme for all govt employees.

12.59 PM: Estimated cost of LTC Cash Voucher Scheme

• For Central govt: Rs 5,675 crore
• For PSBs & PSUs: Rs 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.

12.56 PM: The FM says "indications are that savings of govt and organised sector employees have increased, we want to incentivise such people to boost demand for the benefit of the less fortunate."

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 pic.twitter.com/XDLzUisi3r

PIB in Maharashtra (@PIBMumbai) October 12, 2020

12.54 PM: What is LTC Cash Voucher Scheme?

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.

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 pic.twitter.com/qj4VHOLz4z

PIB in Maharashtra (@PIBMumbai) October 12, 2020

12.52 PM: Latest pics from press conference by Union Finance Minister on economic issues.

Pics from press conference by Union Finance Minister @nsitharaman on economic issues.

Watch on PIB's
YouTube: https://t.co/widACqKUrU
Facebook: https://t.co/w8CsgFDBZe pic.twitter.com/DZerG2YvjB

K.S. Dhatwalia (@DG_PIB) October 12, 2020

12.50 PM: Finance Minister Nirmala Sitharaman says the government employees can choose to buy goods or services worth three times the fare and one time the leave encashment. 

12.49 PM: The proposals being presented are designed in a way that they can stimulate demand by front-loading/advancing some of the expenditure with some offsetting changes. Others are directly linked to an increase in the GDP: FM Sitharaman

12.48 PM: Watch Nirmala Sitharaman's presser here:

#WATCH: Finance Minister Nirmala Sitharaman addresses media https://t.co/5hFOxm7BbZ

ANI (@ANI) October 12, 2020