Central Government announces Rs 3,737 crore bonus for over 30 lakh government employees. Union Minister said that the total financial implication of this bonus will be Rs 3,737 crore, and it will be given in a single installment through direct benefit transfer before Vijaydashami.
As an effort to encourage spending during the festive season, the Centre on Wednesday decided to give Rs 3,737 crore as bonus to 30.67 lakh non-gazetted central government employees. The Government decided to provide both productivity and non-productivity linked bonuses for 2019-2020 after the completion of the Union Cabinet meeting.
Information and Broadcasting minister Prakash Javadekar while addressing a press conference said employees will receive bonus in a single installment via direct transfer before Vijaydashami. “This bonus will encourage the middle-class to spend and therefore add to the demand in the economy,” added Javadekar.
This bonus will benefit 16.97 lakh non-gazetted employees of Government establishments like posts, defence, railways, EPFO, ESIC etc., who will get productivity linked bonus–The financial implication would be Rs 2,791 crore. Other than this, 13.70 lakh non-gazetted central government employees will get non-PLB of Rs 946 crore, the government said.
The payment to non-gazetted employees in the preceding year will usually be made before Durga Puja/Dussehra season.
Wednesday’s decision comes just after the finance minister Nirmala Sitharaman announced measures worth 45, 675 crore with interest-free festival loans for government employees to encourage consumer spending.
The government is trying to stimulate demand in the market through such announcements. India’s GDP contracted 23.9% in the June quarter, that is the worst performer among G20 economies. The Reserve Bank of India forecasts that the economy of India will contract 9.5% in the financial year 2021.