Cabinet approves DA hike, PM Garib Kalyan Yojana extension, and railway stations' redevelopment.
On Wednesday, the cabinet chaired by Prime Minister, Modi approved the release of an additional instalment of Dearness Allowance and Dearness Relief at 4% to Central Government employees and pensioners.
The DA now stands at 38% of the basic pay/pension as against 34% raised earlier back in March, 2022. The raise will be applicable with effect from July 1, 2022.
The additional financial implications on account of the increase of DA to employees are estimated at Rs 6,591.36 crore per annum, and Rs 4,394.24 crore in the financial year 2022-23 (8 months from July, 2022 to February, 2023).
Whereas, in case of the pensioners, the additional financial implications are estimated at Rs 6,261.20 crore per annum, and Rs 4,174.12 crore in the financial year 2022-23.
The combined impact on the exchequer on account of both dearness allowance and dearness relief would be of the order of Rs 12,852.56 crore per annum and Rs 8,568.36 crore in the current financial year i.e., 2022-23, said I&B minister Anurag Thakur while briefing about Union Cabinet decisions to the media.
The central government every year revises dearness allowance and dearness relief on January 1 and July 1 but the decision taken is usually announced in the month of March and September.
As many as 50 lakh central government employees and 62 lakh pensioners are likely to benefit from this decision.
Apart from the DA hike, the Union Cabinet also extended the PM Garib Kalyan Anna Yojana scheme under which free ration is provided to the poor in India.
The scheme has been extended to another three months till December 31, 2022, and will provide rations to the poor at the cost of around Rs 40,000 cr.
The Union Cabinet has further approved Rs 10,000 crore for the redevelopment of the New Delhi, Ahmedabad, and Mumbai's Chhatrapati Shivaji Maharaj Terminus railway stations, informed, Information and Broadcasting Minister Anurag Thakur.