Govt trains guns on boosting consumer & capital demand with Rs 73K cr push

The govt estimates that today's announcements will give a Rs 73,000 cr boost to demand in the economy in this financial year

Finance Minister Nirmala Sitharaman on Monday announced the government's two-pronged move to boost capital expenditure and stimulate consumer demand. In order to bolster the economy, which has been hit hard by the coronavirus pandemic, the finance minister announced steps like advance part-payment of allowances to central government employees for spending during the festival season and a 50-year interest-free loan to states. The initiatives are estimated to cost Rs 73,000 crore.

Sitharaman announced the LTC Cash Voucher and Festival Advance Schemes to encourage government employees to spend more and boost demand in the economy.

As part of the announcement, central government employees