Finance Minister, Nirmala Sitharaman, announced some key steps to stimulate consumer demand. The slew of measures come just before the festive season in order to boost the economy.
The FM announced a special LTC Concession Scheme to stimulate spending. The Leave Travel Concession (LTC) Cash Voucher Scheme is a special festival advance scheme to ensure that more people come to the market and buy things in order to spark up the economy. The scheme ensures tax free fare for a roundtrip provided the employees spend three times the amount in goods that amount to GST of 12%. The government believes that the scheme will push consumption upto 28,000 Rupees.
The government has also announced that interest free loans for capital expenditure will be given to states.