(Rptg, inserting dropped word in para two, line one)

New Delhi, Mar 23 (UNI) The Union Cabinet today hiked the dearness allowance for Central government employees and pensioners by three per cent.

''The DA has been hiked by three per cent,'' Commerce Minister Kamal Nath told reporters after the Cabinet meeting.

The increase in DA from 21 per cent to 24 per cent will cost the government an additional Rs 1,130 crore per annum. The burden for January-February 2006-07 on account of the DA hike will be Rs 1,320 crore.

The additional cost in case of pensioners will be Rs 460 crore per annum.

UNI YJ MSJ PM1407