new Delhi.23 April 2020. In view of the current situation of Corona virus infection, the Modi government of the Center has taken a big decision. Government is currently prohibiting the increase in Dearness Allowance / Dearness Relief (DA / DR) for employees and pensioners. In the present case, enhanced DA will not be granted from January 1 to December 31, 2020. About 54 lakh central employees and about 65 lakh pensioners will be affected by this decision of the government.
Significantly, last month, the central government announced a 4 percent increase in dearness allowance of central employees. After this DA was increased from 17 per cent to 21 per cent. But in the current situation caused by the corona virus, the dearness allowance which has been increased from 1 January 2020, 1 July 2020 and 1 January 2021 has been banned. Not only this, this increased dearness allowance will also not be available as arrears.
In fact, the country’s economy has collapsed due to the corona virus epidemic. The central government’s revenue has been severely affected. Apart from this, due to this epidemic, the government has to take many major decisions related to economic matters. In such a situation, the government is currently not in a position to bear the economic burden of this increase of DA.
Proposal in cabinet meeting
Explain that the proposal related to this was put in the meeting of the Modi cabinet on Wednesday, but the Finance Ministry decided on it today. The Finance Ministry has announced to stop DA in view of the current economic situation in the country.
14595 crore will be saved
The Center had increased dearness allowance by 4 per cent for its employees and pensioners. Now that it has been stopped, it will save the government an average of over Rs 1000 crore every month. Explain that the government had made a provision of additional burden of Rs 14595 crore to increase dearness allowance.
What is dearness allowance
Let us know that dearness allowance is that extra amount which is given to improve the standard of living of government employees. In such a situation, the government is very keen on these dearness allowances for employees and pensioners. The amount of dearness allowance is decided by the government in proportion to the rising rate of inflation.