Bhubaneswar: The Odisha government on Saturday announced a six percent increase in dearness allowance (DA) for 700,000 government employees and pensioners with effect from January 1 this year.

The government hiked DA from 119 percent to 125 percent – an additional burden of Rs 667.90 crore annually on the state exchequer, said state Finance Minister Pradeep Amat.

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“The DA hike has been approved by Chief Minister Naveen Patnaik. The six increase in DA will be effective retrospective from January 2016,” Amat said.

The decision will benefit four lakh government employees and three lakh pensioners in the state.

With the government implementing the DA hike with retrospective effect from January 1, the government would bear a financial burden of Rs 789.72 crore this year, which includes four months arrears, he added.

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