The interest free advance will give a big boost to employees, who can spend the amount for the upcoming festivals, reports added.
New Delhi: 7th Pay Commission — In a bid to stimulate consumer spending in the economy in an effort to fight the slowdown due to the ongoing COVID-19 pandemic, the government might announce Special Festival Advance Scheme before the festive season of Holi, media reports said. The central government under the scheme will give Rs 10,000 to the central employees.
The interest free advance will give a big boost to employees, who can spend the amount for the upcoming festivals, reports added.
It may be recalled that Finance Minister Nirmala Sitharaman had announced Special Festival Advance Scheme revived as a one-time measure for both Gazetted and non-Gazetted employees in 2020
The Special Festival Advance Scheme was announced as a one-time measure to stimulate demand. All Central Government employees were allowed to get an interest-free advance of Rs 10,000, to be spent by 31st March, 2021 on the choice of festival of the employee. The interest-free advance was recoverable from the employee in maximum 10 instalments.
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The employees were provided a pre-loaded RuPay Card of the advance value. The Government also bore the Bank charges of the card. Disbursal of advance through RuPay card ensures digital mode of payment, resulting in tax revenue and encouraging honest businesses. The one-time disbursement of Special Festival Advance Scheme (SFAS) was estimated to amount to Rs. 4,000 crore.
