The cabinet approved a proposal on Wednesday to raise the dearness allowance (DA) for central government employees and pensioners to 38% of basic pay from 31% previously, an increase of 4%, effective July 1, 2022.
The proposal to release an additional installment of DA to compensate for the price increase was approved at the Cabinet Committee on Economic Affairs (CCEA) meeting led by Prime Minister Narendra Modi.
Union cabinet chaired by PM Shri @narendramodi ji approves release of additional instalment of Dearness Allowance and Dearness Relief @ 4% to Central Government employees and pensioners, due from July 2022. #CabinetDecisions
— Nitin Gadkari (@nitin_gadkari) September 28, 2022
On other hand, The additional financial implications of this Dearness Allowance increase for Central Government employees are estimated to be 6,591.36 crore per year, and 4,394.24 crore in the fiscal year 2022-23 – from July 20, 2022 to February 20, 2023.
The increase in Dearness Relief to pensioners is estimated to add Rs.6,261.20 crore per year, and Rs.4,174.12 crore in the fiscal year 2022-23.
The combined impart on the exchequer from Dearness Allowance and Dearness Relief would be 12,852.56 crore per year, and 8,568.36 crores in the fiscal year 2022-23, that is, from July 20, 2022, to February 20, 2023.
The government announced on Wednesday that the Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY), or free ration scheme, has been extended for the next three months. According to Union Minister Anurag Thakur, the Central Cabinet has decided to extend the PMGKAY scheme for another three months.
The Union Cabinet makes significant decisions pertaining to social welfare, economy and infrastructure development.
Have a glance at the briefings!#CabinetDecisions pic.twitter.com/c1mNnoSDDz
— BJP (@BJP4India) September 28, 2022
In March 2020, the Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY) was launched to provide free 5 kg foodgrains per person per month to approximately 80 crore beneficiaries covered by the National Food Security Act (NFSA).
The free rationing scheme was extended for the fifth time in Phase V, until March 2022. The Centre extended the scheme to provide 5 kg of foodgrains free of charge to the poor for six months until September 30 at a cost of 80,000 crores on March 26.
Meanwhile, Cabinet has approved the Memorandum of Understanding between India and Bangladesh on the withdrawal of up to 153 cusecs of water each by the two countries from the common border river Kushiyara. This will help Assam immensely during the dry season.
Our Cabinet has approved the Memorandum of Understanding between India and Bangladesh on withdrawal of upto 153 cusecs of water each by the two countries from common border river Kushiyara.
This will help Assam immensely during the dry season.#CabinetDecisions
— Gajendra Singh Shekhawat (@gssjodhpur) September 28, 2022
The PMGKAY’s sixth phase is set to end on September 30, 2022. However, the government extended the scheme for another three months just days before the deadline.
