Chaudhary said the amount saved helped the government deal with the economic impact of the COVID-19 pandemic.
The minister also said that the decision to suspend the three installments of DA/DR was taken due to the economic crisis caused by the pandemic.
The central government has clarified that it is “impossible” to waive 18 months of dearness allowance (DA) arrears for employees suspended during the Covid-19 pandemic. The government has withheld three parts of Dearness Allowance (DA) and Dearness Allowance (DR) in 2020 due to the COVID-19 pandemic. Since this move, central government employees and pensioners have been waiting for an update on the overdue arrears. .
Minister of State for Finance Pankaj Chaudhary said in the Lok Sabha on Monday that the 18-month arrears waiver of DA and DR is not possible due to the negative financial impact of the pandemic.
“Due to the adverse financial impact of the pandemic in 2020 and the funding of welfare measures taken by the government having a fiscal impact beyond the financial year 2020-21, DA/DR arrears for the challenging financial year 2020-21 are considered infeasible,” Chaudhary said.
The minister also said that the decision to suspend the three installments of DA/DR was taken due to the economic crisis caused by the pandemic. It is aimed at easing the financial burden on the government, he said.
In 2021, Finance Minister Nirmala Sitharaman while replying to a question in the Rajya Sabha said that discontinuation of DA/DR has helped the government save around Rs 34,402 crore.
Chaudhary said the amount saved helped the government deal with the economic impact of the COVID-19 pandemic.
Both honorarium and honorarium are reviewed twice a year. The new tariffs will be effective from January 1 to July 1. The last revision was done in September 2022, when DA was raised from 4% to 38%. DA is issued for government employees while DR is issued to central government pensioners to reduce the impact of inflation.
While this comment may end speculations of a DA arrears waiver, the Center is expected to announce a 4% DA hike anytime soon. A similar increase is expected for pensioners in DR.
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