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Home / Lucknow / UP government clears Rs 1,960 crore festive bonanza for state employees

UP government clears Rs 1,960 crore festive bonanza for state employees

The scheme approved by the UP government is modelled on similar schemes approved for Central government employees.

lucknow Updated: Oct 17, 2020, 12:08 IST
HT Correspondent | Edited by Abhinav Sahay
HT Correspondent | Edited by Abhinav Sahay
Hindustan Times, Lucknow
The scheme okayed by the UP government is meant to encourage spending in the festive season.
The scheme okayed by the UP government is meant to encourage spending in the festive season. (AFP Photo/Representative)

The Uttar Pradesh cabinet on Friday approved a festival bonanza worth Rs 1,960 crore for state government employees in form of a special festival package and a special cash package in lieu of leave travel concession (LTC).

Chief minister Yogi Adityanath chaired the state cabinet meeting that approved both the schemes on the pattern of central government schemes, ahead of the festive season, in a bid to boost cash-flow in the market in the remaining months of financial year 2020-2021.

The state government will have to incur an expenditure of Rs 1,000 crore on the festival package while a sum of Rs 960 crore will be spent on the special cash package. Close to 10-15 lakh state government employees are likely to benefit from the two schemes.

Under the special festival package scheme, an interest-free cash advance of Rs 10,000 would be made available to all state government employees. This scheme will remain in force till March 31, 2021. A pre-loaded State Bank of India card will be given to the employees on request by the respective heads of department. This amount will be recovered from the employees in not more than 10 instalments. The festival advance will be given for all the festivals listed in the state government’s list of public/restricted holidays.

Also Read: UP BJP leader shot dead by bike-borne men, 3 detained: Police

The special package in lieu of LTC, also worked out on the pattern of a central scheme, would be available for eligible employees till March 31, 2020. Under this scheme, the deemed to and from fare for any destination at the rate of Rs 6,000 per head would be admissible for four members of the family of an employee eligible for the LTC scheme. The employee would be reimbursed the amount if he/she spends three times the admissible sum from vendors/service providers registered for GST and buys items on which 12% GST is levied. An amount equivalent to 50% of the deemed fare of LTC would be given as advance in the bank account of the employees and this amount will be adjusted on producing the purchase vouchers. Such claims for adjustment of advance will have to be submitted within the current financial year and the amount would be recovered along with penal interest if it remains unused or partially used. The income tax rules will be applicable on the special cash package amount as have been applicable on the LTC advance.

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