New Delhi, Apr 22:
The Government has put on hold increase in Dearness Allowance for its employees because of the strain on its finances due to Coronavirus.
The Union Cabinet had approved an increase of 4% to DA in March to 21%. A Government source said that the increase has been put on hold.
The Government’s tax revenues have plummeted because of the COVID-19 lockdown while expenses have shot up because of the support provided to the vulnerable groups.
This will impact about 49.26 lakh Central Government employees and 61.17 lakh pensioners.
The Government revises Dearness Allowance twice a year to compensate for the rise in prices. Next revision is now scheduled in July. (Agencies)
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