Dearness Allowance – da for central govt employees to increase by 5 percent

Just before the festive season, dearness allowance or da of central government employees is going to be increased by 5%. The union cabinet took this decision; the da will be now 27.77 of the basic pay. The increase will be effective from 1^st July. The employees and pensioners of central government will surely have an extra reason to enjoy the upcoming festivals, however for the government though its going to cost a total of 2,903.55 crore in 09 – 10 and 4, 355.35 crore every year after that.

This is done to combat the growing price rise. The Union Cabinet also reserved 1000 crore for a housing loan scheme that will be available for loans of upto 10lakh and the house must be less than 20 lakh. In the loan, the subsidy of 1% will be available for the first 12 installments.