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The Union Cabinet today gave its approval for release of additional instalment of dearness allowance and dearness relief to Central Government employees and pensioners respectively with effect from January 1, 2005. Thus, the rate of DA from January 1, 2005 will be 17 per cent for all Central Government employees, constituting an increase of 3 per cent over the existing rate of 14 per cent.
The additional financial implications on account of this increase of DA are estimated at Rs.1146.24 crore per annum; and Rs.1337.28 crore in the financial year 2005-2006 (i.e. for a period of 14 months from Jan.2005 to Feb 2006. The additional financial implications on account of this increase of Dearness Relief to pensioners are estimated at Rs.462 crore per annum and Rs.537 crore in the financial year 2005.2006. Thus, the combined impact on the exchequer on account of both dearness allowance and dearness relief would be of the order of Rs.1608.24 crore in a full year and Rs.1874.28 crore in the financial year 2005-06.
RK/HS/LV
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