There is very little to cheer about for Central Govt. employees ahead of the festive season. FM announced two package for Govt. employees to boost expenditure and in turn to recover from the economic recession.
The packages sound good but after issuance of the O.Ms it is clear that Govt. aimed to boost economy more and at the same time lured the employees to make expenditure more that they get out of these packages and eventually may be leaded to a debt trap.
Let us take the example of Festival Advance. The amount of Rs 10,000 to be disbursed in the form of a debit card and have to buy goods within 31st march. It means the entire amount has to be spent regardless of requirement. Click to view
The second one is more dangerous - Cash in lieu of LTC. A lump-sum amount .Rs 36,000/20,000/6000 per person of family will be paid in lieu of journey fare and the employee has to make expense of 3 times in goods/service entailing at least 12% GST.
He is also entitled to leave encashment of 10 day which is normally available with LTC. This amount is also required to be spent totally in the above items or service.
It simply means if an employee claim Rs Rs 24,000 as fare component (assuming a four member family with lowest entitlement) and Rs 20,000 as leave encashment he has to spend at least Rs 72,000 for the cash in lieu of LTC and Rs 20,000 which he got as leave encashment.
Total Incoming Rs 44,000 (24,000 + 20,000) while mandatory expense Rs 92,000 ! A good joke indeed !!
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