TNI Bureau: Finance Minister Nirmala Sitharman on Monday announced 50 year interest free loans for States to the tune of Rs 12,000 crore as special assistance for capital expenditure in a bid to boost economy.
👉 Out of this amount Rs 200 crore each for 8 North-East states, Rs 450 crore each Uttarakhand, Himachal Pradesh & Rs 7,500 crore for remaining State will be distributed in proportion of their share in the Finance Commission devolution.
👉 These funds can be utilised for new or ongoing capital projects or for the settling of contractor or supplier bills. The loan repayment period will begin after 50 years and no loan servicing is required until that time.
👉 All central govt. employees can now get interest-free advance of Rs. 10,000, recoverable in maximum 10 installments.
👉 The measures announced today, for boosting consumer spending and capital expenditure, will boost demand by ₹ 73,000 crore, to be spent by March 31, 2021.
👉 Employees will get pre-loaded Rupay Card of the advance value.
👉 The new part of this scheme is that the employees can now encash their LTCs in the form of vouchers.
• For Central Govt. : Rs 5,675 crore
• For PSBs & PSUs: Rs 1,900 crore