Press Information Bureau
Government of India
Ministry of Finance
20-September-2013
The Union Cabinet today approved the proposal to release an additional installment of Dearness Allowance (DA) to Central Government employees and Dearness Relief (DR) to pensioners with effect from 01.07.2013, in cash, at the rate of 10 per cent increase over the existing rate of 80 per cent.
No.7(2)1E.Coord/2013
Ministry of Finance
Department of Expenditure
New Delhi, the 18th September, 2013
OFFICE MEMORANDUM
Sub: Expenditure Management – Economy Measures and Rationalization of Expenditure.
Ministry of Finance, Department of Expenditure has been issuing austerity instructions from time to time with a view to containing non- developmental expenditure and releasing additional resources for priority schemes. The last set of instructions was issued on 31st May 2012, 1st November 2012 and 14th November 2012. Such measures are intended at promoting fiscal discipline, without restricting the operational efficiency of the Government. In the context of the current fiscal situation, there is a need to continue to rationalize expenditure and optimize available resources. With this objective, the following measures for fiscal prudence and economy will come into immediate effect:-
2.1 Cut in Non-Plan expenditure:
For the year 2013-2014, every Ministry/Department shall effect a mandatory 10% cut in non-Plan expenditure excluding interest payment, repayment of debt, Defence capital, salaries, pension and the Finance Commission grants to the States. No re-appropriation of funds to augment the Non-Plan heads of expenditure on which cuts have been imposed, shall be allowed during the current fiscal year.
Centre set to hike DA of govt. employees by 10%
Ahead of the festive season, the UPA government is set to hike the dearness allowance (DA) of its employees by 10%, a move that will benefit almost 8 million people by boosting their purchasing power.
The Union cabinet will consider a proposal on the raising the allowance, which is a proportion of basic pay, at its meeting on Friday.
In what can be seen as major sop for a large section of aam aadmi, this will be the second DA hike in a financial year. More importantly, also ahead of the 2014 general elections.
The Centre’s decision will not only directly benefit 5 million employees and 3 million pensioners, but also help infuse more money into the economy.
