Dearness Allowance: Dearness Allowance (DA) is paid to central government employees or pensioners to avoid inflation and unstable financial condition. Its motive is to adjust the cost of living and protect their basic pay/pension. The Central government increases the dearness allowance percentage twice yearly, on January 1 and July 1.
Dearness Allowance (DA) was made an effect of the economic disruption caused by the pandemic. The Government’s fiscal deficit is due to Covid-19’s financial impact in 2020, the funding of the Government and to freeze of three installments. The Government saved and utilized an impressive amount of 34,402.32 crores by freezing three installments of Dearness Allowance to the deficit the pandemic’s impact on Central Government employees and pensioners.
Release of DA Arrears to Central Government Employees and Pensioners
In Parliament today, Shri Pankaj Chaudhary, the Minister of State for Finance, addressed the matter of 18 months of DA arrears owed from January 1st, 2020 to June 30th, 2021.
Government of India
Ministry of Finance
Department of Expenditure
Lok Sabha
Unstarred Question No. 1971.
To be answered on Tuesday, 13th March 2023
Phalguna 22, 1944 (Saka)
Release of DA Arrears to Central Government Employees and Pensioners
1971:: SHRI C. LALROSANGA:
Will the Minister of Finance be pleased to state:
(a) whether the Government has any plan to release the 18 months of DA Arrears stopped during Covid-19 Epidemic to Central Government Employees and Pensioners in the near future and if so, the details thereof and the time by when the Government is likely to release the arrears;
(b) the reasons for the delay in the release of said DA arrears; and
(c) the total amount of funds required for the disbursement of the DA Arrears to Central Government Employees and Pensioners?
Answer
Minister of State in the Ministry of Finance
(Shri Pankaj Chaudhary)
(a)&(b): No, Sir, The decision to freeze three installments of Dearness Allowance(DA)/Dearness Relief (DR) to Central Government employees/pensioners due from 01.01.2020, 01.07.2020 & 01.01.2021 was taken in the context of COVID-19, which caused economic disruption, so as to ease pressure on Government finances. As the adverse financial impact of the pandemic in 2020 and the financing of welfare measures taken by the 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. Even now the fiscal deficit of the Government is running at more than double the level envisaged in the FRBM Acct.
(c): Does not arise. However, an amount of Rs.34402.32 crores had been saved and utilized to tide over the economic impact of the COVID-19 pandemic on account of the freezing of three installments of Dearness Allowance and Dearness Relief payable to Central Government employees and pensioners.
Salary and Pension Hike Expected from Jan 2023
Dearness Allowance for Central Government employees 7th Pay Commission increased the percentage up to 4%. The total percentage of dearness allowance for the current 38% increased to 42% from January 2023. The hike in DA allowance for central government employees makes a happy and positive note for the central government.