The Cabinet today approved merger of 50% dearness allowance of Central government employees and pensioners with their basic pay. However, it has deferred a decision on anti-corruption ordinances and Forward Contract Regulation (Amendment) Act. A special Cabinet meeting is likely tomorrow to take call on these ordinances.
Eyeing Lok Sabha polls, Cabinet hikes DA of 50 lakh Central employees
New Delhi: With an eye on Lok Sabha elections, the Union Cabinet approved a hike in dearness allowance (DA) to 100 per cent from existing 90 per cent benefiting 50 lakh Central government employees and 30 lakh pensioners. The DA hike though, will not be merged with the basic pay.
The Cabinet in its last meeting before the Lok Sabha elections, also approved Rs 1,000 per month as the minimum pension for the non-government staff under the EPFO scheme.
ALSO SEE Cabinet approves President's Rule in Andhra Pradesh
However, an ordinance on key anti-corruption legislations which have been strongly backed by Congress Vice President Rahul Gandhi has been deferred. Sources saying there could be a decision at another Cabinet meeting on Saturday. The Congress core group will take up the issue when it meets on Friday evening.
Meanwhile, the Cabinet has also decided that Andhra Pradesh, which is being split to create Telangana, will be put under President's Rule. The state has been without a chief minister after Nallari Kiran Kumar Reddy resigned from the post and Congress party to protest against the passage of Andhra Pradesh Reorganisation Bill, 2013 which paved the way for Telangana's creation.
The Bill is awaiting President Pranab Mukherjee's consent after which India will have 29 states.