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National
3 per cent DA increase for Central staff
By Our Special Correspondent
NEW DELHI,
SEPT. 17.
The Centre today announced a three per cent increase in Dearness Allowance for Government servants and a similar raise in the Dearness Relief for pensioners.
Announcing the decision after a Cabinet meeting, the Union Finance Minister, P. Chidambaram, said the increase would have retrospective effect from July 1 last. With this, the rate of DA and DR would go up to 14 per cent.
The combined impact on the exchequer on the account of the decision would be in the order of Rs. 1,608.39 crores in a full year. For the current financial year, it would, however, be only Rs. 1,072 crores as the payment has to be made only for nine months.
The Cabinet also decided to set up a separate department for ex-servicemen welfare in the Defence Ministry in fulfilment of a commitment made in the National Common Minimum Programme of the Government.
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