- Associations representing all tourism, travel and hospitality industries are not happy with the government’s announcement on LTC.
- Under LTC Cash Voucher Scheme, Government employees can opt for cash amount for holidays
- These vouchers can only be used to purchase non-food items that attract GST.
A big announcement has been made by the Union Finance Minister Nirmala Sitharaman regarding Leave Travel Concession. These funds have been redirected by the central government to buy consumer goodies, so that the demand in the market can increase and the economy gets a boost. Although this decision may be pleasing to the central employees, the associations representing all the tourism, travel and hospitality industries are not happy. The ‘Federation of Associations in Indian Tourism and Hospitality’, which has brought out all these associations, has expressed disappointment over the decision of Nirmala Sitharaman.
India’s travel and tourism industry has suffered a major setback from the lockdown. In such a situation, this industry was believing that the demand for traveling in the festive season holiday would increase, which would give some support to the industry. But the government has broken this hope by making a policy to use LTC for consumer goods.
Central employees will get government gift, cash in lieu of holidays
What has the government decided?
Union Finance Minister Nirmala Sitharaman has made a big announcement for government employees today. The Finance Minister said that in LTC voucher scheme, government employees can take vouchers in lieu of holidays. These vouchers can only be used to purchase non-food items that attract GST.
Nirmala said that under the LTC Cash Voucher Scheme, government employees can opt for cash for the holidays. He said that the amount would be given in advance for expenditure to encourage demand and special festival advance scheme would be started. Explain that every four years, the government gives LTC to its employees to travel to any destination of their choice. In addition, an LTC is given to them to visit their home state.
It is believed that the market will get the benefit of this scheme for the employees of the government. This may bring consumer demand of up to Rs 36,000 crore by 31 March 2021. The scheme will benefit the Central Government employees as well as employees of state governments and public sector companies.
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