Hike in DA for Central Government Employees

Today, The Union Cabinet increased the DA, Dearness Allowance for the employees of Central Government Sectors. This hike amounts to 6% adding to the existing DA of 16%.Hence the effective DA will become 22% and this hike comes into effect from January, 1 2009. Bu this will increase the burden of the exchequers that would amount to cross Rs 6K crores.

Recently the India's stand in Finance Minister Pranab Mukerjee had announced the tremendous cuts like 2% cut in service Tax and excise duties. This would cost around Rs 29K crores that the government has to bear upon. But the cut of in central excise duties of 4% would continue to next year also while the excise rates of 10 % would be cut by 2%.

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