7th Pay Commission Latest News Today 2020: Good news for government employees from Modi government; festival advance scheme revived

In a big announcement for government employees, Modi government on Monday announced the revival of Special Festival Advance Scheme for festivals up to 31 March 2021. The government has revived it as a one-time scheme for all gazetted and the non-gazetted employees and up to the sum of Rs 10,000, Finance Minister Nirmala Sitharaman said. This will be an interest-free advance in that will be repaid in 10 instalments, the FM added.

This advance will be given as a prepaid Rupay Card. The employees will be able to use it for any festival falling up to 31 March 2021, the FM said. The finance minister further said that the government was not limiting it to one festival of the “GST only shops”.

The scheme which was abolished in the recommendations given by the 7th pay Central Pay Commission (CPC) was originally present during the time of the sixth pay commission, Sitharaman today said while addressing a media briefing. However, this scheme was available only for the non-gazetted and lower level employees and up to the amount of Rs 4,500, she said.

This scheme was abolished after the sixth pay commission.    

The government will bear the bank charges on this.  

Sitharaman was addressing a press conference on economic issues and the state of economy along with Anurag Thakur who is the Minister of State (MoS) for Finance and Corporate Affairs.

The pandemic has adversely affected the economy, she said adding that the needs of the poor and weaker sections have been addressed in various announcements made by the government.  

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She said that though the supply constraints have somewhat eased, consumer demand still needed to be given a boost.