The Union Cabinet on Wednesday authorized the mountaineering of dearness allowance (DA) and dearness reduction (DR) for central authorities employees by 3 per cent to 34 per cent, an official assertion mentioned.
The transfer will profit about 4.8 million central authorities employees and 6.9 million pensioners and will likely be efficient from January 1, 2022.
The assertion mentioned this was to compensate for worth rise and was “in accordance with the accepted formula, which is based on the recommendations of the Seventh Central Pay Commission.”
The mixed impression on the exchequer on account of enhance in DA and DR will likely be Rs 9,544.5 crore each year. In October final 12 months, the Cabinet had hiked the 2 allowances by 3 per cent to 31 per cent. It was efficient from July 1, 2021. Before that in July, the federal government had restored DA and DR and elevated the speed of allowance from 17 per cent to twenty-eight per cent. Because of the pandemic, the central authorities had frozen the three extra instalments of DA and DR, which had been due on January 1, 2020, July 1, 2020, and January 1, 2021.
MSME programme
The Cabinet additionally authorized a World Bank-assisted Rs 6,062 crore funding programme for small and medium companies to assist enhance their entry to market and credit score. The programme, named ‘Raising and Accelerating MSM Performance’ (RAMP) for MSMEs will begin in FY23. Of the whole outlay beneath the programme, Rs 3,750 crore ($500 million) will come from World Bank mortgage, and the remaining Rs 2,312.45 crore will likely be funded by the Centre. A complete of 555,000 MSMEs have been particularly focused for enhanced efficiency.
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