Cabinet may approve 6%
DA on Thursday
The Union Cabinet
approval for the 6% rise in the Dearness Allowance for the Central Government
employees is expected to be announced on coming Thursday.
It is a well-known
fact that every six months, the Central Government increases the Dearness
allowance for its employees during the months of January and July. The increased
amount is calculated on the price index (CPI IW BY 2001=100) of essential
commodities. Rise in the Dearness allowance is being calculated on the basis of
the changes in the prices of the essential commodities during the periods
between January and June and the period between July and December.
But, it takes around
three months since the release of the price index for the months of June and
December to arrive at the calculation for the increase in the Dearness
allowance. With the result that the increase due from the month of July is
being given only from the month of October and the amount due from January is
being given only from the month of April.
And, because of this
situation, the amount due for the left-behind period of two months is to be
settled as arrears. Practical problems arise in the calculation of the arrears
amount and also problem arises in clarifying the doubts of the beneficiaries.
Pensioners especially, are more tensed up over this procedure.
To avoid this
situation, the price index during the periods from November to April and from
May to October can be taken into account and the increase in the Dearness
allowance calculated based on the information relevant to these periods. The
amount can be disbursed from the months of January and July as per this
calculation so that there’s no due as arrears.
We imaginatively
tested this method to find out the result. It was found out that there was no
tangible change in the increase amount if calculated on the basis of the price
index obtained during the months of April and October.
