A four per cent increase in the inflation allowance of central employees and pensioners

New Delhi, Mar 13, 2020, Friday

The Modi government has given a big gift to central employees and pensioners. At a cabinet meeting, the government has announced a four per cent increase in the inflation rate of central employees (DA).

After the Cabinet meeting, Information and Broadcasting Minister Prakash Javadekar said that six important decisions have been taken at the meeting. These include the approval of Yes Bank's restructuring plan, a four per cent increase in the DA of central employees and pensioners, and important decisions regarding export.

The government's decision to increase DA will benefit 48 lakh employees and 65 lakh pensioners. The government has decided to increase the DA by four percent from one January, 2020. One crore 13 lakh families will benefit from this decision.

Prakash Javadekar has stated that the Modi government had decided to implement the Seventh Pay Commission on January 1, 2016. At that time, the salary of central employees was increased.

Now the DA of central employees has increased from 17% to 21%. The decision to increase the DA by four per cent will put a burden of Rs 14,595 crore on government treasury.

The Union Minister further said that the support price of dried coconut produced in South India has also been increased. Dried coconut support was Rs 9521, which was increased by 439 rupees to 9960 rupees. The government's decision will benefit 30 lakh farmers.

Javadekar said that it has been decided to increase the production of urea in the country so that the export of urea from the country increases and does not depend on imports.

The central government has also approved the restructuring plan of Yes Bank at a cabinet meeting. Informing the Minister, Nirmala Sitharaman said that State Bank of India will buy 49% stake in Yes Bank. He said 26 per cent of the shares would have a lock-in period of 3 years. While for private investors, there will be a lock-in period of 3 years.

Nirmala Sitharaman said the notification for the Re-Structuring Plan will be issued shortly. It is worth mentioning that the inflation rate of central employees is determined on the basis of inflation.