The Cabinet meeting was chaired by Prime Minister Narendra Modi.
Beginning January 2019, the government had raised the DA/DR to 12 per cent from 9 per cent earlier.
The government said the combined impact on the exchequer on account of both DA and DR would be Rs 15,909.35 crore per annum and Rs 10,606.20 crore in financial year 2019-20 (for a period of eight months from July 2019 to February 2020).
This will benefit about 4.9 million central government employees and 6.5million pensioners.
The additional financial implication on account of this increase in DA is estimated at Rs 8,590.20 crore per year; and Rs 5,726.80 crore in the current financial year (from July 2019 to February 2020).
The additional financial implication on account of the DR to pensioners is estimated to be Rs 7,319.15 crore per annum and Rs 4,870 crore in the current fiscal.
DA/DR 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.
These are revised twice a year from January 1 and July 1.
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