Cabinet hikes DA for govt employees

26 Feb 2009 | 12:10 Cabinet hikes DA for govt employees

The Union Cabinet today, 26 February 2009, raised the dearness allowance (DA) paid to government employees to 22% of basic salary, from an earlier 16%. The hike will cost Rs 3514 crore to the government, Home Minister P Chidambaram said.

The decision to hike the DA is clearly aimed at wooing voters. The Election Commission is likely to shortly announce the dates for Lok Sabha elections which are likely to he held in April-May 2009.

In another decision, the Cabinet allowed state government to run up higher fiscal deficits.


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