Central government announced bonus for its 30-lakh non-gazetted employees. According to sources, the Central government has decided to give Rs 3,737 crore as bonus to 30.67 lakh non-gazetted employees with a view to encourage spending during the festival season.
The government took the decision to give productivity-linked and non-productivity-linked bonus for 2019-2020 at the meeting of the Union Cabinet, Minister of Information and Broadcasting Prakash Javadekar told reporters on Wednesday.
“The Union Cabinet has approved productivity-linked bonus and non-productivity linked bonus for 2019-2020. More than 30 lakh non-gazetted employees would benefit from the bonus announcement. And the total financial implication in this regard would be Rs 3,737 crore,” he said.
The government to distribute the bonus to the employees in a week’s time. It will encourage the middle-class to spend and thus add to the demand in the economy, the minister said. “The government will give the bonus amount in a single instalment, through Direct Benefit Transfer, before Vijayadashami,” he added.
Central government proposal to stimulate demand
Earlier, the Finance Minister had unveiled new proposals to stimulate demand in the economy in view of the pandemic.
Addressing a press conference, Finance Minister Nirmala Sitharaman said that she has broadly classified the proposals into two different compartments — consumer spending and capital expenditure.
She said, “There is no gain saying that the pandemic has affected the economy adversely. The needs of the weaker and poor sections have been addressed somewhat in the various packages announced, so far. Supply constraints have somewhat eased but consumer demand still needs to be given a bit of a boost. The proposals frontload some expenditure or advance some expenditure with some offsetting charges later. However, the others directly linked to an increase in the GDP.”
The Minister said that the consumer spending proposals include a LTC cash vouchers scheme and a special festival advance scheme. The LTC Cash Vouchers scheme was mainly targeted to employees in the government and other organised sectors.