Finance Minister K. M. Mani on Friday announced an additional instalment of dearness allowance of seven per cent to government employees, teachers and pensioners with effect from July this year.

Replying to debate on a series of Appropriation Bills pertaining to the demands for excess grants relating to 14 years from 1993-94 in the Assembly, the Minister said that arrears pertaining the period from July to November would be merged with the Provident Fund of employees and teachers. Arrears to the pensioners would be paid in cash.

Mr. Mani said that with the sanctioning the additional instalment, the dearness allowance of employees would go up from 24 per cent to 31 per cent. The total outgo from the exchequer for payment of the additional allowance would be Rs. 80 crore.

After the Minister’s reply, the House voted the Bills for 70 votes against 63.