Himachal announces 7% DA for state staff

The Himachal Pradesh government on Tuesday announced seven per cent dearness allowance (DA) to the state employees. This DA is due from July last year. The arrears up to March 2015 will be deposited in the provident fund of the staff. "The enhanced DA will put a burden of Rs 300 crore on the state exchequer," Himachal Pradesh Chief Minister Virbhadra Singh said. 

Himachal is believed to have the highest ratio of government employees in the country. There are close to 2.5 lakh government staff, while the population of the state is 68 lakh. While many blame the 13th Finance Commission for underestimating the committed liabilities of the state, despite being a special category hill state. Others say successive governments in the state have mismanaged funds. This also include providing maximum number of government jobs to people.