Finance Minister Urged To Reconsider Withholding Dearness Allowance In Upcoming Budget Session - Details

27/01/2024

finance minister urged to reconsider withholding dearness allowance in upcoming budget session – details

In the aftermath of the COVID-19 pandemic, the Central Government halted the payment of Dearness Allowance (DA) and Dearness Relief (DR) for a duration of 18 months, spanning from January 2020 to June 2021. The decision was justified by Pankaj Chaudhary, Minister of State in the Ministry of Finance, citing the adverse financial impact of the pandemic in 2020 and the substantial funds allocated for government welfare measures during the challenging fiscal year of 2020-21.

According to The Economic Times report, addressing the Finance Minister, Nirmala Sitharaman, Mukesh Singh, General Secretary of Bharatiya Pratiksha Mazdoor Sangh, appealed to the government to release the suspended DA arrears accumulated over the 18-month period. Singh acknowledged the economic disruptions caused by the pandemic but emphasized the nation’s gradual recovery and improvement in the financial position.

He drew attention to the commendable efforts of government employees and retirees during the pandemic, highlighting their dedication in ensuring essential services continued seamlessly and supporting the nation’s battle against COVID-19.

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In his letter, Singh urged a review of the decision on withholding three instalments of Dearness Allowance during the upcoming budget session. He pointed out the positive financial trajectory and the crucial role played by government employees, proposing that the temporarily withheld amount could now be disbursed to the deserving beneficiaries.

According to the report, Singh expressed understanding of the government’s allocation of funds to address the economic impact of the pandemic. He contended that releasing the suspended DA arrears would not only recognise the efforts of government employees and retirees but also provide much-needed relief to those who served the nation diligently. Singh highlighted the variable nature of Dearness Allowance, which depends on factors such as whether the employee works in the urban, semi-urban, or rural sector.

Dearness Allowance is a vital component of government employees’ and pensioners’ salaries which serves to mitigate the impact of inflation. The Union government revises DA biannually, in January and July, to adjust salaries effectively in response to changing inflation rates.

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