Government hikes DA by 4% from 38% to 42%; extends Ujjwala subsidy by 1 year

Effective from January 1, 2023, the combined impact on the exchequer on account of hike in both DA and DR would be Rs 12,815.60 crore per annum.

Published: 25th March 2023 07:44 AM  |   Last Updated: 25th March 2023 07:44 AM   |  A+A-

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Express News Service

NEW DELHI: The Union Cabinet, chaired by the Prime Minister, on Friday increased the dearness allowance (DA) and dearness relief (DR) of central government employees and pensioners by 4% to 42%, from the existing 38%.

Effective from January 1, 2023, the combined impact on the exchequer on account of a hike in both DA and DR would be Rs 12,815.60 crore per annum. This will benefit about 47.58 lakh central governments employees and 69.76 lakh pensioners, Union minister Anurag Thakur said announcing the Cabinet decision. 

This increase is in accordance with the accepted formula that is based on the recommendations of the 7th Central Pay Commission, he added. Also, the Cabinet Committee on Economic Affairs approved a subsidy of Rs 200 per 14.2 kg cylinder for up to 12 refills a year for the beneficiaries of Pradhan Mantri Ujjwala Yojana (PMUY).  As of March 1, 2023, there are 9.59 crore PMUY beneficiaries.

Total expenditure will be Rs 6,100 crore for FY23 and Rs 7,680 crore for FY24.  The subsidy is credited directly to the bank accounts of the eligible beneficiaries.  Public sector oil marketing companies  Indian Oil Corporation (IOCL), Bharat Petroleum Corporation Ltd. (BPCL) and Hindustan Petroleum Corporation (HPCL) have already been providing this subsidy since May 22, 2022. 

To make LPG a clean cooking fuel, available to rural and deprived poor households, the government launched Pradhan Mantri Ujjwala Yojana in May 2016, to provide deposit-free gas connections to adult women of poor households. Also, the Cabinet has given its approval for the Minimum Support Price (MSP) for raw jute for 2023-24 season. The approval is based on recommendations of the Commission for Agricultural Costs and Prices (CACP).


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