The Union Cabinet, chaired by Prime Minister Narendra Modi, on Wednesday approved a two per cent hike in Dearness Allowance for government employees and pensioners from January 1, 2017. The approval was for the release of an additional installment of Dearness Allowance (DA) to Central Government employees and Dearness Relief (DR) to pensioners with effect from January 1, 2017. This increase is in accordance with the accepted formula, which is based on the recommendations of the 7th Central Pay Commission.
The combined impact on the exchequer on account of both Dearness Allowance and Dearness Relief would be Rs. 5,857.28 crore per annum and Rs.6,833.50 crore in the Financial Year 2017-18 (for a period of 14 months from January, 2017 to February, 2018).
This will benefit about 48.85 lakh Central Government employees and 55.51 lakh pensioners.
The cabinet also approved special assistance for Andhra Pradesh in funding of Externally Aided Projects & Irrigation component of Polavaram project. It also cleared the Indian Institutes of Information Technology (Public- Private Partnership) Bill, 2017.
The Cabinet Committee of Economic Affairs approved six laning of Handia-Varanasi section of NH-2 in Uttar Pradesh.