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HomeNewsCabinet approves 4% hike in DA for central govt staff

Cabinet approves 4% hike in DA for central govt staff


NEW DELHI : The Union cabinet on Wednesday increased dearness allowance (DA) and dearness relief by 4%, benefitting over 4 million employees and about 7 million pensioners of the central government. The decision comes at a time steep inflation erodes savings and crimps spending power.

Dearness allowance is a cost of living adjustment paid to central government employees, while dearness relief is paid to central government pensioners. Policymakers and economists hope the disbursal of the amount, which comes at the beginning of the festive season, will raise consumption and boost economic growth.

“The cabinet, chaired by Prime Minister, Shri Narendra Modi, has approved the release of additional instalment of Dearness Allowance and Dearness Relief @ 4% to central government employees and pensioners due from 1 July 2022 based on the percentage increase in 12 monthly average of All India Consumer Price Index for the period ending June 2022,” a cabinet statement said.

The additional financial implication of this increase in dearness allowance to central government employees is estimated at 6,591.36 crore per annum, and 4,394.24 crore in the financial year 2022-23, it said. “The combined impact on the exchequer on account of both dearness allowance and dearness relief would be of the order of 12,852.56 crore per annum; and 8,568.36 crore in the financial year 2022-23,” the statement added.

The Cabinet also approved 10,000 crore for the redevelopment of railway stations in New Delhi and Ahmedabad as well as Mumbai’s Chhatrapati Shivaji Maharaj Terminus, information and broadcasting minister Anurag Thakur said at a press briefing.

Railway minister Ashwini Vaishnaw said all station redevelopment would be undertaken in the engineering-procurement-construction (EPC) model and not in public-private partnership (PPP) mode, to ensure that there is no additional burden on passengers.

Vaishnaw said work on redeveloping 199 stations is under way, and out of these, tenders have been issued for 47 stations.

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