Reportedly the government on Wednesday hiked dearness allowance (DA) given to central government employees by five per cent in what seems to be a move aimed at reviving consumer demand amid an economic slowdown. Perhaps Dearness Allowance or DA is paid by the government to its employees as well as pensioners to offset the impact of inflation.
Meanwhile Union minister Prakash Javadekar made the announcement after a cabinet meeting on Wednesday and the move will be effective from July 2019 and is a major relief for government employees who will now be entitled to an additional five per cent dearness allowance. When addressing a press conference, Javadekar said the hike in DA will cost the government Rs 16,000 crore annually and that it is a diwali gift for over 50 lakh central government employees and 62 lakh pensioners.
He said "Under the leadership of Prime Minister Modi, several decisions have been taken and good news for govt employees is that Dearness Allowance has been hiked by 5%”. Moreover Javadekar said that the move will offer relief to the working class and that the government will continue to announce measures for addressing issues that many sectors are facing due to the slowdown in demand.
