Question : BAN ON LTC



(a) whether his Ministry has banned LTC facilities to the Central Government employees for two years;

(b) the total amount likely to by saved by this measure;

(c) whether his Ministry has any proposal to restore the Home Town Concession for the benefit of the employees who are hailing from distant States; and

(d) if not, the reasons thereof?

Answer given by the minister


THE MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI BALASAHEB VIKHE PATIL) :

(a) to (d) As announced in the Budget Speech for the year 2001-2002, LTC facilities to Central Government employees have been suspended for a period of two years w.e.f. 02.03.2001 except to those who have less than two years service before retirement as a measure to effect economy in the non-plan expenditure. Likely savings on this account is estimated to be about Rs. 200 crore per annum. No proposal is under consideration at this stage to resipre the Home Town Concession.