New Delhi, Sep 10 (ANI): The Union Government on Thursday announced a five percent increase in the dearness allowance for its employees and pensioners, with effect from July this year.
The announcement will entail an outgo of about Rs 2,904 crore this fiscal.
Announcing the decision after a cabinet meeting, Union Information and Broadcasting Minister Ambika Soni told reporters that the combined impact on the exchequer on account of hike in dearness allowance and relief would be of the order of Rs 4,355.35 crore for entire year.
The impact for the current fiscal would be Rs 2903.55 crore, as the increase would be effective for nine months only from July to March.
Soni said, a five percent increase in the DA for the employees and dearness relief for pensioners would be over the existing rate of 22 percent of the basic pay or pension.
The Union Cabinet also approved the interest rate subsidy of one percent for housing loans up to Rs 10 lakhs and earmarked Rs 1,000 crore for the scheme.
The subsidy of one percent will be available for first 12 EMIs (Equated Monthly Installments) on loans up to Rs 10 lakhs for houses costing less than Rs 20 lakhs.
Earlier, in July while replying to the debate on the General Budget Finance Minister Pranab Mukherjee had announced the scheme for providing interest rate subsidy on house loans. (ANI)