Government Addresses Queries on 18-Month DA Arrears

Swift Summary:

• During the COVID-19 pandemic, three instalments of Dearness Allowance (DA) and dearness Relief (DR) for central government employees and pensioners were frozen to ease pressure on public finances caused by economic disruption.
• The freeze applied to DA/DR due on January 1, 2020, July 1, 2020, and January 1, 2021.
• MP Anand Bhadauria questioned the government in Parliament regarding arrears for these frozen instalments.
• Government response: The fiscal deficit has narrowed from 9.2% in FY 2020-21 to an estimated 4.4% in FY 2025-26. Despite fiscal recovery steps taken post-pandemic welfare measures led to no feasible room for paying arrears of DA/DR.

Indian Opinion Analysis:

The decision to suspend DA/DR payments was grounded in tackling immediate financial challenges during the COVID crisis-a time when preserving broader public welfare over non-essential spends was essential.While India’s fiscal health shows notable improvement since then (from a high deficit of over nine percent), managing resources after unprecedented global shocks requires prioritization.

For affected employees and pensioners awaiting arrears payout, this highlights an enduring trade-off between national-level finances versus individual entitlements during crisis periods-a common phenomenon globally. While no direct resolution is imminent per government statements as fiscal resources are still constrained addressing concerns will need future deliberations balancing workforce morale & budget resilience effectively.Read More