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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 INDIAMINISTRY OF FINANCELOK SABHA
UNSTARRED QUESTION NO 6002ANSWERED ON 03.05.2013
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;(c) if so, the details thereof and the reaction of the Government thereto; and(d) the steps proposed to be taken by the Government to correct the situation in future?
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 ofCPI-IW (2001=100) Build-up ofCPI-IW inflation (%) Annual DearnessAllowance (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.