Dearness allowance Current Affairs - 2020

GoI: No New Schemes for a year

On June 5, 2020, the Government of India announced that no new schemes will be approved till March 31, 2021. Till then, the schemes under Pradhan Mantri Garib Kalyan Yojana and Atma Nirbhar Bharat Abhiyan are to be implemented.

Highlights

The Government of India will implement the schemes that were announced under Atma Nirbhar Bharat Abhiyan and Pradhan Mantri Garib Kalyan Yojana alone. All the other ministries have been asked to stop sending requests for new scheme.

This is being done to manage available finances efficiently. According to GoI, the announcement is being made as there is un-precendented demand on public financial resources and there is a huge need to use the available resources in a prudent way. Government of India had earlier frozen Dearness Allowance of Employee salaries till 2021 as well.

Atma Nirbhar Bharat Abhiyan

The scheme was launched to improve the growth of the country. The scheme announced several measures and covered almost all sections of the society. It allocated Rs 20,000 lakh crores. The scheme covered agriculture, fisheries, MSME, street vendors, mining, migrant workers, Jal Jeevan Mission, MGNREGA, Public Distribution System, etc. The scheme also intends to provide houses and food for the migrant workers that have returned to their native places.

Pradhan Mantri Garib Kalyan Yojana

The scheme was launched to ease lives of the people of India during the COVID-19 crisis. It aimed to provide rice, wheat and pulses at affordable rates and also free for a short period.

COVID-19: Hike in Dearness Allowance for the year 2021 put on hold

The Government of India on April 23, 2020, put on hold to the hike in dearness allowance. This is being done by the union government to save Rs 1 lakh crore.

Highlights

The hold in the hike of dearness allowance applies only to central government employees and pensioners. Currently, the central government employees are receiving Dearness Allowance at 17% of their salary. The Government had planned to increase the allowance by 4%.

What is Dearness allowance?

Dearness Allowance is received by pensioners and government employees. The DA is revised twice every year in the month of July and January. The allowance is provided to the employees and pensioners to compensate inflation.

Around 8.5% of the Union Budget is used as salaries to the central government employees.

History

The concept of Dearness Allowance was introduced during World War II. In India the Dearness Allowance was introduced as Old Textile allowance in 1947. It was then reintroduced as Revised Textile Allowance in 1953. DA was first linked to wage revision of employees. It was later linked to the Consumer Price Index.