DA to Central Government Employees - Minister replies in Loksabha

Increase in the rate of DA to Central Government employees is in proportion to the increase in the rate of inflation in the country – Minister of State for Finance replies in Lok Sabha

GOVERNMENT OF INDIA

MINISTRY OF FINANCE

LOK SABHA

UNSTARRED QUESTION NO 6002

ANSWERED ON 03.05.2013

DA INCREASE

6002 . Shri RAJAIAH SIRICILLA

Will the Minister of FINANCE be pleased to state:-

(a) the proportionate increase in the rates of inflation vis-a-vis the Dearness Allowance (DA) of Central Government employees during each of the last three years and the current year;

(b) whether the increase in the rate of DA to the Central Government employees is not in proportion to the increase in the rate of inflation in the country during the aforesaid period;

(d) the steps proposed to be taken by the Government to correct the situation in future?

ANSWER

MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI NAMO NARAIN MEENA)

(a) & (b)

As per the recommendations of the Sixth Central Pay Commission, the Dearness Allowance (DA) is given to Central Government employees in January and June every year based on last 12 month average of all India Consumer Price Index for Industrial Workers (2001=100). The build-up of CPI-IW inflation and Dearness Allowance (DA) since the commencement of Sixth pay commission is given below:

Year	12 month average of CPI-IW (2001=100)	Build-up of CPI-IW inflation (%)	Annual Dearness Allowance (DA)(%)
2005	115.77	0.00	0
2006	122.92	6.18	6
2007	130.75	12.94	12
2008	141.67	22.37	22
2009	157.08	35.69	35
2010	175.92	51.96	51
2011	191.50	65.42	65
2012	209.33	80.82	80

The increase in the rate of DA to the Central Government employees is in proportion to the increase in the rate of inflation in the country. The fraction of inflation is carried forward.

This was stated by Shri Namo Narain Meena, Minister of State in the Ministry of Finance in written reply to undermentioned question by Shri Rajaiah Siricilla in Lok Sabha
(c) & (d) Does not arise.

Source: loksabha.nic.in