Govt to hike dearness allowance

The move could cost the govt Rs 10,879 crore

GN Bureau | September 19, 2013



In a move that could be detrimental in garnering votes of the central government employees in the upcoming general elections, the government has decided to  hike their deaness allowance from existing 80 percent to 90. The intended move could benefit 50 lakh central employees and 30 lakh pensioners.

According to a report from the news agency PTI, the decision, which could be taken as early as Friday, will cost the government a whooping Rs 10,879 crore. There would be additional burden of Rs 6,297 crore on exchequer during 2013-14 on account of this hike in DA. 

The hike would be effective from July this year. DA was hiked to 80 percent from 72 percent in April, 2013, effective from January 1, this year.

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