Govt Clarifies Decision to Freeze DA for Central Government Employees During Pandemic

The Indian Ministry of Finance has stated that there are no plans to release 18 months of Dearness Allowance (DA) arrears to Central Government employees and pensioners, which were frozen during the COVID-19 epidemic. The decision to freeze the three installments of DA/DR was taken in the context of the pandemic, to ease pressure on government finances, as the adverse financial impact of the pandemic and financing of welfare measures taken by the government had a fiscal spill-over beyond FY 2020-21. The arrears of DA/DR, which mostly pertain to the difficult financial year of 2020-21, are not considered feasible. The fiscal deficit of the government is running at more than double the level envisaged in the FRBM Act. The freezing of DA/DR helped the government save and utilize an amount of Rs.34402.32 crores to tide over the economic impact of the pandemic on Central Government employees and pensioners.

Release of DA Arrears to Central Government Employees and Pensioners

Government of India
Ministry of Finance
Department of Expenditure
Lok Sabha

Unstarred Question No. 1971.
To be answered on Tuesday, 13th March, 2023
Phalguna 22, 1944 (Saka)

Release of DA Arrears to Central Government Employees and Pensioners

1971:: SHRI C. LALROSANGA:

Will the Minister of Finance be pleased to state:

(a) whether the Government has any plan to release the 18 months DA Arrears stopped during Covid-19 Epidemic to Central Government Employees and Pensioners in the near future and if so, the details thereof and the time by when the Government is likely to release the arrears;

(b) the reasons for the delay in the release of said DA arrears; and

(c) the total amount of funds required for the disbursement of the DA Arrears to Central Government Employees and Pensioners?

Answer
Minister of State in the Ministry of Finance
(Shri Pankaj Chaudhary)

(a)&(b): No, Sir, The decision to freeze three instalments of Dearness Allowance(DA)/Dearness Relief (DR) to Central Government employees/pensioners due from 01.01.2020, 01.07.2020 & 01.01.2021 was taken in the context of COVID-19, which caused economic disruption, so as to ease pressure on Government finances. As the adverse financial impact of pandemic in 2020 and the financing of welfare measures taken by Government had a fiscal spill over beyond FY 2020-21, arrears of DA/DR which mostly pertain to the difficult FY of 2020-21 are not considered feasible. Even now the fiscal deficit of the Government is running at more than double the level envisaged in the FRBM Acct.

(c): Does not arise. However, an amount of Rs.34402.32 crores had been saved and utilized to tide over the economic impact of COVID-19 pandemic on account of freezing of three installments of Dearness Allowance and Dearness Relief payable to Central Government employees and pensioners.

Source: Loksabha