Special Cash Package Scheme, Madhya Pradesh

To encourage the employees to buy goods and services thereby giving a boost to the demand and GST collection in the state economy

On November 28, 2020, Madhya Pradesh government has announced and issued orders regarding a new initiative ‘Special Cash Package Scheme’. This scheme is launched for the state government employees. This scheme aims at demand generation in the state economy as well as GST collections will increase.  This scheme is for consumer spending, under which the state government will give up o Rs. 4000/- to each state employee on the purchase of good/ services up to Rs. 12,000/- from the market. The employees will have to spend 3 times of their cash package on purchasing items which have 12% or more GST.

Scheme Overview:

Scheme name: Special Cash Package Scheme
Scheme Under: Madhya Pradesh Government
Announced By: CMO Madhya Pradesh, Shivraj Singh Chauhan
Beneficiaries: Employees from state government
Benefit: Up to Rs. 4000/- cash package
Objective: To encourage the employees to buy goods and services thereby giving a boost to the demand and GST collection in the state economy

Scheme Objectives and Benefits:

  • The main objective of the scheme, to boost the consumption demand in the economy by encouraging the employees through cash package
  • Due to the pandemic situations, the economy and businesses have hit hard and thus this scheme tends to boost the economy
  • It aims at boosting the purchasing will of the employees
  • This will boost the demand and consumption in the economy thereby increasing the GST collections
  • It will enable the for purchasing the goods with 12% or more GST
  • This scheme will increase flow of money in the economy

List of scheme lunched by the Madhya Pradesh government

Scheme Details:  

  • Special Cash Package Scheme is announced by the Madhya Pradesh government for the state employees
  • Under this scheme, the state government employees will be given special cash packages up to Rs. 4000 on purchase of goods and services up to Rs. 12,000 or more from the market
  • The first- and second-class employees will get Rs. 4000/-
  • Third class employees will get Rs. 3000/-
  • Fourth class employees will get Rs. 2,000/-
  • Goods to be purchased by the employees are required to be purchased from a GST registered vendor
  • The goods/ services purchased should have 12% or more GST
  • The payment is required to be made via digital mode only
  • Then on successful purchase the employee will get a reimbursement up to Rs. 4000/- as applicable
  • This purchase is to be made compulsorily before April 30, 2021
  • Due to the pandemic situations all over, the economy has been hit really hard especially in the first half
  • This scheme aims at boosting the overall consumption demand in the state economy
  • It will also increase the GST collections
  • This scheme will be in force till March 31, 2021

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