The total amount of DR (for pensioners) and dearness allowance (DA) for central government employees is around Rs 34,000 crore. A representative clarified that the amount of previous DA and DR would not be released.
The Finance Ministry on Monday turned down a request from pensioners to release three installments of Dearness Relief (DR) held back during the peak days of the COVID-19 pandemic as part of the government’s expenditure control measures for immediate relief work .
Two people with knowledge of the same said on condition of anonymity that it is estimated that the total amount of DR (for pensioners) and dearness allowance (DA) for central government employees is around Rs 34,000 crore.
In the 32nd meeting of the Standing Committee of Voluntary Agencies to Review Pension Rules, a representative of the Department of Expenditure (DOE) clarified that the amount of the previous DA and DR would not be released. DoE is a branch of the Union Ministry of Finance. Union Pensioners Welfare Minister Jitendra Singh presided over the meeting held on Monday.
Three hikes in DA and DR allowances
The Finance Ministry and DoE did not respond to email queries sent in this regard. The DA and DR allowances have seen three hikes after the freeze on July 21, effectively doubling them.
An official of the Ministry of Personnel, Public Grievances and Pensions said, “The Department of Pensions looks after the welfare of pensioners and resolves their grievances expeditiously at multiple levels. But the distribution of DA and DR does not come under the purview of the ministry.
DA and DR freeze from April 2020
The government had frozen DA and DR with effect from April 2020, a month after the Covid-19 pandemic hit India. According to the second person, ‘In view of the unprecedented situation arising due to the Kovid-19 epidemic, three installments of DA to Central Government employees and DR to pensioners due on 1 January 2020, 1 July 2020 and 1 January 2021 have been frozen.’
In August 2021, in the Rajya Sabha, Finance Minister Nirmala Sitharaman said that this resulted in a saving of about ₹ 34,402 crore. Maheshwari claimed that the deposits could exceed Rs 36,000 crore including interest. At least they (government) should pay dues for pensioners as they have no other means to survive. They said that
There are many other issues related to pensioners as well, which were also raised. For example inadequate health facilities and poor CGHS system. We served the country, now we are retired. They should treat all people equally. Another government official, speaking on condition of anonymity, said the allowance for all government employees has been withheld.
The Union Cabinet on March 30 this year increased the Dearness Allowance (DA) by three per cent to 34% for 47.7 lakh central government employees, which is equally applicable in Dearness Relief (DR) for 68.6 lakh pensioners.
“The combined impact on the exchequer on account of both Dearness Allowance and Dearness Relief will be ₹ 9,544.50 crore per annum,” an official statement issued after the cabinet meeting said. Earlier, the latest hike comes within five months after the government raised DA and DR by three percentage points to 31% in October 2021.
