Cabinet approves 5% additional DA/DR due July, 2019

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By Our Correspondent

NEW DELHI: The Union Cabinet Chaired by Prime Minister Narendra Modi on Wednesday approved to release an additional instalment of Dearness Allowance (DA) to Central Government employees and Dearness Relief (DR) to pensioners w.e.f. 01.07.2019 representing an increase of 5% over the existing rate of 12% of the Basic pay/Pension, to compensate for price rise.  This increase is in accordance with the accepted formula, which is based on the recommendations of the 7th Central Pay Commission.

 This will benefit about 49.93 lakh Central Government employees and 65.26 lakh pensioners.The additional financial implication on account of this increase in Dearness Allowance is estimated at Rs 8590.20 Crore per year; and Rs 5726.80 Crore in the current Financial Year of 2019-20 (for 8 months from July 2019 to February 2020).

The additional financial implication on account of the Dearness Relief to pensioners is estimated to be Rs 7319.15 Crore per annum and Rs 4870 Crore in the current FY.Dear Allowance/Dearness Relief is paid to Central Government employees/pensioners to adjust the cost of living and to protect their basic pay/pension from erosion in the real value. Dear Allowance/Dearness Relief is revised twice a year from 1st January and 1st July.

The  Cabinet also approves Inclusion of 5,300 DP families of Jammu & Kashmir-1947 who initially opted to move outside the State of Jammu & Kashmir but later on returned and settled in the State of Jammu & Kashmir, in the Rehabilitation Package approved by the Cabinet on 30.11.2016 for Displaced Families PoJK and Chhamb under the PM’s Development Package 2015 for Jammu & Kashmir

The Union Cabinet chaired by the Prime Minister  Modi has approved Inclusion of 5,300 DP families of Jammu & Kashmir-1947 who initially opted to move outside the State of Jammu & Kashmir but later on returned and settled in the State of Jammu & Kashmir, in the Rehabilitation Package approved by the Cabinet on 30.11.2016 for Displaced Families PoJK and Chhamb under the PM’s Development Package 2015 for Jammu & Kashmir.

The approval will enable such DP Families to become eligible to get one-time financial assistance of Rs 5.5 Lakhs under the existing scheme, and in turn, be able to get some sustained income which the existing scheme is aimed at.

It is mentioned here that in the wake of the1947 Pakistani aggression in J&K, 31,619 families migrated from Pakistan Occupied Areas of J&K (PoJK) to the state of J&K. Of these, 26,319 families settled in the state of J&K and 5300 families initially opted to move out of the state of J&K to other parts of the country. Further during the Indo-Pak wars of 1965 and 1971 10,065 more families were displaced from ChhambNiabat area. Of these 3,500 families were displaced during the 1965 war and 6565 families were displaced during the 1971 war.

The 36,384 displaced families covered under the package approved by the Cabinet on 30.11.2016 included 26,319 displaced families from PoJK settled in J&K and 10,065 Displaced Families displaced from ChhambNiabat area. The 5300 DP families of PoJK who initially opted to move out of the state of J&K to other parts of the country were not included in the approved package. Now those DP families out of the 5300 who initially opted to move out of the State but later returned and settled in J&K are being included in the package.

Inclusion of those DP Families out of 5,300 DP families of PoJK 1947 who have returned and settled in the State of Jammu & Kashmir in the existing scheme, who have suffered on account of wars and hostilities, will enable them to earn a reasonable monthly income and be part of mainstream economic activities. This will also upgrade the Government’s capacity to respond effectively to such DP families need of financial assistance. Requirement of funds will be met out of the already sanctioned funds for the existing scheme.

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