The release of the additional installment of dearness allowance to employees and dearness relief to pensioners will be effective from January 01, 2023.
This will amount to 4 per cent with effect from January 1, 2023.
Union minister Anurag Thakur on Friday announced the hike on dearness allowance or DA for central government employees by 4 per cent to 42 per cent with effect from January 1, 2023.
Not just this, but also the subsidy under the Pradhan Mantri Ujjwala Yojana for another year.
Impact on the exchequer
The combined impact on the exchequer on account of both Dearness Allowance and Dearness Relief will be ₹12,815.60 crore per annum, the information and broadcasting minister told reporters after the meeting of the Cabinet Committee on Economic Affairs (CCEA).
This increase is in accordance with the accepted formula, which is based on the recommendations of the 7th Central Pay Commission.
The government has also extended the subsidy under the Pradhan Mantri Ujjwala Yojana for another year.
Subsidy on LPG
In a major relief to Pradhan Mantri Ujjwala Yojana beneficiaries and to shield them from high LPG prices, the government approved a subsidy of ₹200 per 14.2 kg cylinder for up to 12 refills per year.
The Cabinet has also given its approval for Minimum Support Price or MSP for raw jute for the 2023-24 season.
Fixed MSP on jute
The MSP of raw jute has been fixed at ₹5,050 per quintal.
This would ensure a return of 63.20 per cent over the all-India weighted average cost of production, the Centre said.