The committee felt the additional tranche of DA relief, amounting to Rs 1,600 crore annually, to Central government staff put states under an immense pressure to provide matching relief to their employees and pensioners.
The committee has suggested that the Centre should, therefore, explicitly take states into confidence before releasing each tranche.
The committee, which includes the finance secretaries of several states and officials from both the Reserve Bank of India and the finance ministry, is expected to submit its report in the next year.
