Confederation demands restoration of Dearness Allowance at current rate

The Confederation of Central Government Employees & Workers has written to the Finance Minister demanding the restoration of the Dearness Allowance to Central Government employees and Dearness Relief to Central Government pensioners at current rates. The letter mentions that the Covid-19 situation in India has improved considerably and under control with a vast population of the country are unaffected by the Covid-19. It continues to state that the economic situation in the country has also improved compared to April- May 2020 situation, where the industrial production had gone down to minus 57% and in October to plus 3.6 % Industrial production has vastly improved with a recovery, the financial position of the country has also improved considerably the GST collections has shown positivity in last four months. 

The copy of the letter is reproduced below

Ref: Confdn/Dearness Allowance                                                                             Dated – 11.01.2021

To

Hon’ble Smt. Nirmala Seetharaman

Finance Minister

Government of India

New Delhi – 110001

Sub: -  Payment of Dearness Allowance to Central Government employees and Dearness Relief to Central Government pensioners at current rates due to improved Covid and financial situation in the country.

Respected Madam, 

Vide Office Memorandum dated 23rd April, 2020 of Government of India Ministry of Finance, Department of Expenditure letter No. 1/1/2020-E-II-B, the additional DA for CG employees and DR for pensioners was freezed from 1st January 2020 till 1st July 2021 due to the reason “view of the crisis arising out of COVID-19”. These orders are applicable to all Central Government employees and Central Government pensioners. Which has affected both the serving employees and pensioners and especially to those who have retired during the period 1st Jan 2020 to 1st Jan 2021. 

The Covid-19 situation in India has improved considerably and under control with a vast population of the country are unaffected by the Covid-19, The Covid cases in September 2020 was around 95,000 cases daily, on 4th January 2021 is around17,000 cases which is lowest in six months, with less mortality rate. 

The economic situation in the country has also improved compared to April- May 2020 situation, where the industrial production had gone down to minus 57% and in October to plus 3.6 % Industrial production has vastly improved with a recovery, the financial position of the country has also improved considerably the GST collections has shown a positivity in last four months. 

The Goods and Service Tax collection for December 2020 touched a record high of Rs 1.15 lakh crore. This is the highest ever collections since the implementation of the countrywide tax in July 2017. 

The Central Government employees have attended their assigned duties even during the pandemic situation, many have lost their sacrificed their life for the nation building, hence there contribution should be taken into the account. 

The additional financial implication on account of this increase in Dearness Allowance for additional 11% DA is due which works out to 13,000 crores annually, which is manageable under the existing financial conditions , more over this will benefit about 49.93 lakh Central Government employees and 65.26 lakh pensioners who pump this money into the market which also improves the economy considerably and about 30% of the amount spent is collected back by the Government by way of taxes. 

As the Covid situation is under control and economic situation in the country has also improved considerably. Therefore, it is requested to kindly grant Payment of Dearness Allowance to Central Government employees and Dearness Relief to Central Government pensioners at current rates which is 28% as on 1st January 2021. 

With regards, 

Yours sincerely, 

(R. N. Parashar)

Secretary General