State Finance Minister Manpreet Singh Badal said the decision of the Punjab Government will cost the exchequer an additional Rs 480 Crores per annum.
The Punjab Government on Saturday announced a Diwali bonanza for its employees and pensioners by deciding to give them a 3 per cent hike in their Dearness Allowance (DA) with effect from November 1, 2019.
DA is provided by the government to its employees to cushion the impact of the rising cost of living. Inflation (or rate of increase in prices) eats away the buying power of money; hence the justification for DA.
State Finance Minister Manpreet Singh Badal said Chief Minister Capt Amarinder Singh ordered the hike as a mark of appreciation for the hard work and dedication of the government employees. “The decision of the Punjab Government will cost the exchequer an additional Rs 480 Crores per annum,” Badal said.
The government would continue to ensure that the employees and pensioners get their due, irrespective of the state’s fiscal situation, he added.
On Wednesday, the Union Cabinet had decided to increase the DA that it pays its current employees and existing pensioners by 5 percentage points. Accordingly, 50 lakh central government employees and 65 lakh pensioners will henceforth receive 17% of their basic salary as DA instead of 12%.
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