Centre hikes dearness allowance for employees, pensioners by 3%
20 February 2019
The union cabinet on Tuesday approved a 3 per cent increase in dearness allowance (DA) to central government employees, and dearness relief (DR) to pensioners, with effect from 1 January 2019. This increase is over the existing DA rate of 9 per cent of the basic pay/pension, to compensate for price rise.
This increase is in accordance with the accepted formula, which is based on the recommendations of the 7th Central Pay Commission (CPC). The increase in the DA and DR would have a combined impact of Rs10,696.14 crore in the FY 2019-20 (for a period of 14 months from January 2019 to February, 2020) and annual impact of Rs9168.12 crore thereafter.
This will benefit about 4.84 million central government employees and 6.20 million pensioners.
The cabinet chaired by Prime Minister Narendra Modi also approved the promulgation of four ordinances — on Triple Talaq, Medical Council Act, banning of illegal deposits and Companies Amendment Bill.
In a bid to boost public infrastructure, the Cabinet also approved the proposal for construction of Regional Rapid Transit System (RRTS) covering the distance of 82.15 Kms at a total completion cost of Rs30,274 crore. This is the Delhi-Ghaziabad-Meerut Corridor of the RRTS.
Since the Postgraduate Institute of Medical Education and Research, Chandigarh had exhausted its capacity; the cabinet has approved transfer 50 acres of land to the institution at a cost of Rs180 crore. This will enable building of new OPD, shifting of trauma centre and enabling better Cancer Care.
It also approved continuation of the Swadesh Darshan Scheme which focuses on development of integrated theme-based tourist circuits in the country. About Rs2,055.96 crore has been allocated for 60 on-going projects in December 2019 and additional Rs 324.09 crore for six projects has been allocated for six projects to be completed in September 2020. These projects have already got substantial funds.
Meanwhile, the Cabinet Committee on Econonomic Affairs approved revision of norms under Mid-Day Meal Scheme with the outlay of Rs12,054 crore for 2019-2020, in addition to the subsidy of about Rs8,000 crore borne by Department of Food and Public Distribution.