The Union Cabinet on Thursday took a clutch of economic decisions, in what is seen as its last meeting before the general elections are announced. It approved a extension of targeted cooking gas subsidy of Rs 300 per 14.2-kg cylinder to the beneficiaries of the Pradhan Mantri Ujjwala Yojana (PMUY) by one more year till the end of 2024-25 and raised dearness allowance for the central government staff and retirees by four percentage points. Also, an 8-year scheme for over Rs 10,000-crore, was approved to fast-track industrial development in the northeast region. The LPG subsidy will be provided for up to 12 refills per year. For FY25, total expenditure under the scheme is estimated at Rs 12,000 crore, and the subsidy will be credited directly to the bank accounts of beneficiaries. Last year in October, the government had raised the subsidy provided to poor women, who got free cooking gas connections under the PMUY, to Rs 300 per cylinder as it looked to blunt opposition criticism of high fuel prices. The government also announced expansion of the scheme with 7.5 million additional LPG connections to be released in three years. The total subsidy outgo for LPG this fiscal as per revised estimate is Rs 12,240 crore. For next fiscal, the interim Budget had made provision of Rs 11,925 crore under LPG subsidy. The average LPG consumption of PMUY consumers has increased by 29% from 3.01 refills in 2019-20 to 3.87 refills (till January 2024) in 2023-24, according to the government’s latest data. DA, HRA, gratuity up The Cabinet on Thursday enhanced the dearness allowance for its staff and pensioners by 4 percentage points to 50% of pay/pension, along with consequential increases in gratuity and house rent allowance. These wage and allowance benefits would cost the Centre over `24,000 crore between January 2024 to February 2025. Support to NE industry The cabinet gave its nod to a `10,037-crore “Uttar Poorva Transformative Industrialisation Scheme to promote activity in the manufacturing and service sectors in the northeast. Under the scheme, incentives would be provided for setting up new units or undertaking significant expansion of the existing units. Jute MSP hiked 5.6% The CCEA on Thursday approved a 5.6% hike in MSP for raw jute for the 2024-25 season to `5,335/quintal compared to the previous season. Increase in the support price will benefit 4 million jute farmers in West Bengal, Odisha, Assam, Bihar and Andhra Pradesh. It would also benefit 0.5 million people engaged in the sector.
