The employees and pensioners will receive the additional installment of dearness allowance and dearness relief, respectively, which will be effective from January 01, 2023.
Official announcement
On Friday, Union Minister Anurag Thakur announced that the dearness allowance (DA) for central government employees will be increased by 4% to 42% with effect from January 1, 2023.
In addition, the subsidy under the Pradhan Mantri Ujjwala Yojana will also be extended for another year.
Impact on the exchequer
According to the Information and Broadcasting Minister, the increase in Dearness Allowance and Dearness Relief will result in an annual impact of ₹12,815.60 crore on the exchequer.
The hike is based on the recommendations of the 7th Central Pay Commission and is in line with the accepted formula.
The government has also decided to extend the subsidy provided under the Pradhan Mantri Ujjwala Yojana for another year.
Subsidy on LPG
The government has granted significant relief to the beneficiaries of the Pradhan Mantri Ujjwala Yojana and aims to protect them from the high prices of liquefied petroleum gas (LPG) by approving a subsidy of ₹200 per 14.2 kg cylinder for up to 12 refills annually.
In addition, the Cabinet has approved the Minimum Support Price (MSP) for raw jute for the 2023-24 season.
Fixed MSP on jute
According to the latest announcement by the Centre, the Minimum Support Price (MSP) for raw jute has been set at ₹5,050 per quintal.
This MSP is designed to provide a return of 63.20% over the all-India weighted average cost of production.
