The government today announced a 5 per cent increase in the dearness allowance for the central government employees and pensioners, with effect from July this year, entailing an outgo of about Rs 2,904 crore this fiscal.
Announcing the decision taken by the union cabinet, information and broadcasting minister Ambika Soni told reporters that the combined impact on the exchequer on account of hike in dearness allowance and relief would be of the order of Rs 4,355.35 crore for a full year.
The impact for the current fiscal would be Rs 2,903.55 crore, as the increase would be effective for nine months only from July to March.
The 5 per cent increase in the DA for the employees and dearness relief for pensioners would be over the existing rate of 22 per cent of the basic pay or pension, the minister said.
