DA/DR arrears payment not feasible, government clarifies at Rajya Sabha

In what is to be a piece of bad news for the central government staff, the government stated today that the disbursement of Dearness Allowance and Dearness Relief arrears for Central government employees and pensions at the time of the COVID pandemic is not thought to be viable. This was informed by the Minister of State for Finance Pankaj Chaudhary in a written reply to a question at the Rajya Sabha today. He was replying to a question by Shri Naranbhai Rathwa, a Member of Rajya Sabha representing the Chhota Udaipur constituency of Gujarat and a member of the Congress party.

The negative effects of the pandemic in 2020 and the financing of the Center's welfare initiatives are what caused a fiscal spillover into the Financial Years 2020–21. The various Central government personnel and pensioners unions submitted numerous requests to the government seeking the release of 18 months of DA and DR. In light of the disruptions to the economy brought on by the pandemic, the government had suspended three instalments of DA and DR due from the first of January 2020 to the first of January 2021.

The central government employees were having hope that arrears would be sanctioned at least at a later stage. 

Government of India
Ministry of Finance
Department of Expenditure 

Rajya Sabha
Unstarred Question No. 689
To be answered on Tuesday, 13th December 2022 Agrahayana 22, 1944 (Saka) 

Release of arrears of Dearness Relief of 18 months to pensioners

689:: Shri Naranbhai Rathwa:

Will the Minister of Finance be pleased to state: 

1. whether the Government has received several representations regarding the release of arrears of Dearness Relief to Central Government pensioners for 18 months i.e. from January 2020 to June 2021; 
    
2. if so, the details thereof; and 
    
3. whether Government is sincerely considering the release of 18 months' arrears to pensioners, if not, the reasons therefor? 

Answer 
Minister of State in the Ministry of Finance (Shri Pankaj Chaudhary) 

1. & b. Yes, Sir. Several Representations regarding the release of arrears of 18 months of DNDR payable to Central Government employees/pensioners have been received from. various Central Government employees/pensioners' associations such as National Council (JCM), National Federation of Indian Railway Men (NFIR), All India Railway Men's Federation (AIRF), All India Retired Railway Men's Federation (AIRRF), JCOs/OR Veterans Association (JAVA), Bhartiya Railway Karamchari Union (BRKU), Bhartiya Pension Manch, National Ex-Servicemen Coordination Committee and Veteran Association etc. 

3. The decision to freeze three instalments of DA/DR to Central Government employees/pensioners due from 01.01.2020, 01.07.2020 & 01.01.2021 was taken in the context of COVID-19 which caused economic disruption so as to ease pressure on the Government finances. 
   
   As the adverse financial impact of the pandemic in 2020 and the financing of welfare measures taken by the Government had a fiscal spillover beyond the Financial Year 2020-21, the release of arrears of DA/DR was not considered feasible. 

Source: Rajya Sabha