The 7th Pay Commission has , in a casual manner, recommended that all interest free advances to be abolished. The impact of this recommendation is yet un noticed by the central government employees
Abolishing 12 Interest free advances recommended by 7th CPC
There are 12 Interest free advances are listed in that table provided in the 7th CPC Report. When hearing the news that 7th cpc has recommended to abolish interest free advances , every body thought that some advances like festival advances only will be abolished. But if you read the names of advances recommended for abolishment, it will give you little bit shock. [ Refer : 7th Pay Commission recommendations on Advances ]
In general opinion, the amount that is paid for government servants in some occasions and for specific purposes and the same will be recovered through monthly instalments are considered advances.
But the advance paid for Medical treatment and LTC are not supposed to be included this list, since it is reimbursable in nature and will not be recovered by Government.
The amount paid as advances to the Medical treatment and LTC are not recoverable by government if there is no any default in the claim. since the expenses incurred should be reimbursed to the Govt servants according to their entitlements, the amount paid in advance can be adjusted against the claim of reimbursement is sanctioned. So there is no need of repaying the advance to government in respect of Medical and LTC advances.These should not be included in the list of interest free advances.
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Eventually abolishing these advances will make the central government employees not to avail LTC facility and medical treatment in Private hospital, since the amount of 90 % of the expenses paid in advance will not be available for them any more due to this recommendation. By availing this advances they were able to manage the Medical Expenses and by availing this advance only they were able to bye Air or Train Tickets to go on LTC.
Without these advances, the Group C and B employees cannot imagine availing of LTC to visit some places in India with their family.
The Central Government should not accept the proposal of Abolishing these advances