Here Is What The Government Is Saying
After several questioning sessions, the Government of India has finally responded to the queries on whether the central government employees and pensioners will get their three instalments of Dearness Allowance (DA) and arrears. Let me tell you guys, this fund has been frozen since the Covid-19. The government says that it is “Not Feasible” for them to relase these funds.
In the monsoon session of Lok Sabha Member of Parliament Anand Bhaduria anwsered regarding the three instalments of arrears that were frozen in past during Covid 19 pandemic. he said that the arrears were frozen due to that reason during that time.
Will Central Govt Employees Get Their Arrears?
Here is the breakdown which will clear the answers, coming from Givernmnet Of India during Lok Sabha
- The decision to freeze three instalments of Dearness Allowance (DA) / Dearness Relief (DR)—due from 01.01.2020, 01.07.2020, and 01.01.2021—was taken due to the economic disruption caused by COVID-19.
- This freeze was intended to ease pressure on Government finances during the pandemic.
- A question was raised on whether the fiscal condition of the Government is still under pressure or on the verge of bankruptcy.
- The government responded that the fiscal deficit has narrowed:
- From 9.2% in FY 2020-21
- To 4.4% in FY 2025-26 (as per Budget Estimates)
- However, the adverse financial impact of the pandemic and the cost of welfare measures taken during that time had a fiscal spillover beyond FY 2020-21.
- Therefore, arrears of DA/DR were not considered feasible, according to the government.
What Is DA And Arrears?
The government of India pays DA and arrears as an adjustment for the cost of living to its employees and pensioners. This is to offset the impact of inflation.
- DA: Given twice a year
- DR: Is paid to pensioners
These funds are credited on a pro-rated basis.
Also Read: What Is The Increased Minimum Balance For New Savings Account By HDFC Bank?
