Justifying the same the govt replied in Lok Saba, that “arrears of DA/DR, which mostly relate to the challenging FY of 2020-21, are not regarded as feasible due to the negative financial impact of the pandemic in 2020 and the funding of the welfare measures implemented by the government having a fiscal spillover beyond FY 2020-21.”
Also read: 7th pay commission: Dearness allowance (DA) hiked by 4% for central govt employees, pensioners
In a response to a question in the Lok Sabha, Union Minister of State for Finance Pankaj Chaudhary stated: “No, Sir, The decision to freeze three instalments of Dearness Allowance(DA)/Dearness Relief (DR) to Central Government employees/pensioners due from 01.01.2020, 01.07.2020 & 01.01.2021 was taken in the context of COVID-19, which caused economic disruption, so as to ease pressure on Government finances. As the adverse financial impact of pandemic in 2020 and the financing of welfare measures taken by Government had a fiscal spill over beyond FY 2020-21, arrears of DA/DR which mostly pertain to the difficult FY of 2020-21 are not considered feasible. Even now the fiscal deficit of the Government is running at more than double the level envisaged in the FRBM Acct.”
Adding further, “ Does not arise. However, an amount of Rs.34402.32 crores had been saved and utilized to tide over the economic impact of COVID-19 pandemic on account of freezing of three installments of Dearness Allowance and Dearness Relief payable to Central Government employees and pensioners.”
He wrote the response on a raised query, a) whether the Government has any plan to release the 18 months DA Arrears stopped during Covid-19 Epidemic to Central Government Employees and Pensioners in the near future and if so, the details thereof and the time by when the Government is likely to release the arrears;
(b) the reasons for the delay in the release of said DA arrears; and
(c) the total amount of funds required for the disbursement of the DA Arrears to Central Government Employees and Pensioners?What is Dearness Allowance?
Dearness 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.
The government reviews and re-fixes/increases the percentage of dearness allowance twice a year, on January 1 and July 1.