Cabinet likely approves DA hike, LPG subsidy scheme extension: Report

The Union Cabinet on Thursday likely approved the decision to hike dearness allowance for central government employees by 4 per cent, said ET Now citing sources. Post this hike, dearness allowance and dearness relief (DR) will touch 50 per cent.

Also Read: Govt approves 4% hike in Dearness Allowance for govt employees at cost of Rs 12,869 crore per annum to exchequer

The government also likely extended the LPG subsidy scheme by a year, said an ET Now report. Centre in October last year hiked LPG subsidy for Pradhan Mantri Ujjwala Yojana beneficiaries to Rs 300 per cylinder.


Union minister Anurag Thakur had said that the additional LPG connections will be provided in the course of the next three years and will come with a financial implication of Rs 1,650 crore.

The central government determines the quantum of hike based on the CPI data for industrial workers. The 12-month average is at 392.83. Based on this, DA will come to 50.26 per cent of basic pay. The Labour Bureau, a wing of the Ministry of Labour, publishes the CPI-IW data every month. It may be noted that DA is for employees and DR is for pensioners. Every year, DA and DR are usually raised twice -- January and July.

The last hike came in October 2023, when DA was increased by 4 per cent to 46 per cent. On the basis of current inflation figures, the next DA hike is likely to be 4 per cent.


Here are more decisions that have likely been cleared by the Union Cabinet:

Rs 75,000 cr worth Container port in Maharashtra:
The central government has likely approved Rs 75,000 crore financial support for setting up of container port in Maharashtra, said ET Now.

MSP Hike for Jute:
The Cabinet has likely hiked the Minimum Support Price for raw jute to Rs 5,335 per quintal, said ET Now citing sources.

(More to come)