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State hikes DA by 7%

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10 Jan, 2015 10:09a.m.

West Bengal Chief Minister Mamata Banerjee today announced the much-awaited hike in Dearness Allowance for state government employees by seven per cent with effect from January 1, this year.

The Chief Minister said that the government decided to increase the DA by 7 per cent despite resource constraints.

She said that after she came to power there was a raise of 30 per cent in DA, for which the government had to spend Rs 9,000 crore from the state exchequer.

"This 7 per cent hike alone will cost Rs 2,100 crore," she said.

"We are passing through a tough time because of the legacy of debt burden left by the erstwhile LF government. We have to pay an amount of Rs 28,000 crore annually towards debt servicing. Somehow we manage to pay salaries to the employees," Banerjee said.

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