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Skip to mainAs informed by the finance minister Nirmala Sitharaman at the Rajya Sabha. the freezing dearness allowance (DA) of the central government employees and dearness relief (DR) of the central government pensioners, the government saved Rs 34,402 crore. The government had frozen the DA and DR for a period of 18 months at the July 2019 rate of 17%. The freeze was lifted last month and the government had made it clear that the arrears would not be given. Read: Cabinet okays Dearness Allowance de-freeze and hikes it to 28%
"On account of freezing of three instalments of DA and DR to central government employees and pensioners due from 01.01.2020, 01.07.2020 and 01.01.2021, an amount of ₹34,402.32 crores approximately has been saved," finance minister Nirmala Sitharaman informed the Rajya Sabha.
"The decision to freeze DA and DR was taken in the context of covid-19 caused economic disruption so as to ease pressure on government finances," Sitharaman said.
The finance minister said in view of the crisis in the wake of the pandemic, it had become necessary to raise resources from different possible avenues including reducing salaries of Members of Parliament and union ministers for a period of 12 months from 1 April 2020 to 31 March 2021 by 30%.
"There was no salary cut or DA cut in respect of subordinate employees. The received salary and DA in full. Only further increase in DA was frozen from 01.01.2020 to 30.06.2021," Sitharaman added.
Also read: Associations writes to Finance Minister and all MPs demanding DA/DR arrears
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