Festive Stimulus: A Bid To Augment Consumer Spending And Revive The Economy

Joining the festive bandwagon, the Govt of India has recently announced a special scheme for all Central Government employees, as well as certain private-sector employees

Due to the large multiplier on the spend (3x the LTC), some consumers may hesitate to initially spend quite a large amount just to avail of a tax exemption on it

The festive demand is likely to surge, the LTC vouchers and salary advance schemes by the Govt playing a key role in it

The Government of India recently announced the Leave Travel Concession (LTC) cash voucher scheme to increase the purchasing power of Indian consumers during the festive season. A positive step towards boosting demand and reviving the economy, central Government employees can now submit multiple bills of goods and services purchased in their own name to avail the benefit of the LTC scheme.

Will the scheme result in a much-needed spur in demand? Which goods would benefit from it? This article explores the nuances of the scheme and its implications on consumer demand.

The full article was originally published on Inc 42.