Chaudhary mentioned that the saved quantity helped the federal government to tide over the financial impression of COVID-19 pandemic.
The minister additionally talked about that the choice to freeze three installments of DA/DR was taken as a result of financial disruption attributable to the pandemic.
The Central authorities has clarified that it’ll not be “feasible” to launch the 18-month dearness allowance (DA) arrears for the staff, which was stopped throughout the Covid-19 pandemic. The authorities had held again three installments of dearness allowance (DA) and dearness reduction (DR) in view of the COVID-19 pandemic in 2020. Since this transfer, Central authorities workers and the pensioners have been ready for an replace on the pending arrears.
Minister of State for Finance, Pankaj Chaudhary, on Monday mentioned in Lok Sabha that the discharge of the 18-month arrears of DA and DR wasn’t possible as a result of adverse monetary impression of the pandemic.
“As the adverse financial impact of pandemic in 2020 and the financing of welfare measures taken by Government had a fiscal spillover beyond FY 2020-21, arrears of DA/DR which mostly pertain to the difficult FY of 2020-21 are not considered feasible,” mentioned Chaudhary.
The minister additionally talked about that the choice to freeze three installments of DA/DR was taken as a result of financial disruption attributable to the pandemic. It was aimed toward easing the monetary burden on the federal government, he mentioned.
In 2021, Finance Minister Nirmala Sitharaman, whereas replying to a question in Rajya Sabha, shared that freezing the DA/DRs helped the federal government save round Rs 34,402 crore.
Chaudhary mentioned that the saved quantity helped the federal government to tide over the financial impression of COVID-19 pandemic.
Both dearness allowance and dearness reduction are revised twice a 12 months. The new charges come into impact from January 1 and July 1. The final revision was made in September 2022 when the DA was hiked by 4% to 38%. The DA is launched for presidency workers whereas DR is supplied to Central authorities pensioners to mitigate the impression of inflation.
While this clarification might finish the speculations over the discharge of DA arrears, the Centre is predicted to announce a 4% DA hike anytime quickly. Similar hike in DR can also be anticipated for the pensioners.
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