Releasing of withheld DA and DR – Rajya Sabha QA
New Delhi, February 4, 2025: The Ministry of Finance, Department of Expenditure, addressed concerns regarding the withheld Dearness Allowance (DA) and Dearness Relief (DR) for Central Government employees and pensioners during the Rajya Sabha session today. The issue was raised through Un-Starred Question No. 236 by Shri Javed Ali Khan and Shri Ramji Lal Suman.
In response, Shri Pankaj Chaudhary, Minister of State in the Ministry of Finance, acknowledged the freeze of three DA/DR installments, due from January 1, 2020, July 1, 2020, and January 1, 2021. The Minister cited the unprecedented economic disruption caused by the COVID-19 pandemic as the primary reason for this decision, emphasizing the strain it placed on government finances.
In a clarification provided to the Rajya Sabha today, the government reiterated that releasing the 18 months of Dearness Allowance (DA) arrears for central government employees and pensioners remains unfeasible due to continued fiscal constraints.
Rajya Sabha QA
Government of India
Ministry of Finance
Department of Expenditure
Rajya Sabha
Un-Starred Question No 236
To be answered on Tuesday, 4th February 2025
Magha 15, 1946 (Saka)
Releasing of withheld DA and DR
236: Shri Javed Ali Khan:
Shri Ramji Lal Suman :
Will the Minister of Finance be pleased to state
(a) Whether Dearness Allowance (DA) and Dearness Relief (DR) for Central Government employees and pensioners were withheld for 18 months during the COVID-19 and not seized;
(b) If so, the details thereof and the reasons as to why Government has seized it;
(c) Whether Government would release the same to ensure spending by Government employees and thereby help in boosting the faltering economy of the Country;
(d) If so, the details thereof; and
(e) If not, the concrete reasons therefor?
Answer
Minister of State in the Ministry of Finance
(Shri Pankaj Chaudhary)
(a) to (e) The decision to freeze three installments of Dearness Allowance (DA) / Dearness Relief (DR) to Central Government employees/ pensioners due from 01.01.2020, 01.07.2020 & 01.01,2021 was taken in the context of COVID-19, which caused economic disruption, so as to ease pressure on Government finances. The adverse financial impact of pandemic in 2020 and the financing of welfare measures taken by the Government had a fiscal spill over beyond FY 2020-21. Therefore, arrears of DA/DR were not considered feasible.