Govt Rules Out Release of 18-Month DA Arrears for Employees & Pensioners

The Union Government has reiterated that the arrears of Dearness Allowance (DA) and Dearness Relief (DR) for the 18-month period frozen during the COVID-19 pandemic will not be released, citing the continuing fiscal impact of the pandemic and related welfare measures.

The clarification came in a written reply by Minister of State for Finance, Shri Pankaj Chaudhary, to an un-starred question raised in the Lok Sabha by Shri Anand Bhadauria regarding the freeze on DA/DR and the Government’s fiscal position.

Background of the DA/DR Freeze

The Minister stated that three instalments of DA/DR, due from January 1, 2020, July 1, 2020, and January 1, 2021, were frozen in the wake of the economic disruption caused by COVID-19.
The decision, he noted, was taken “to ease pressure on Government finances” during the crisis.

Fiscal Health of the Government

Addressing concerns about the Government’s financial condition, the Minister highlighted that the fiscal deficit had narrowed from 9.2% in FY 2020-21 to 4.4% in the FY 2025-26 Budget Estimates.
However, he emphasised that the adverse financial impact of the pandemic in 2020 and the cost of financing various welfare measures led to a fiscal spillover beyond FY 2020-21.

No Release of DA/DR Arrears

In response to the question on when the 18-month DA/DR arrears would be released, the Minister categorically stated that such payment was “not considered feasible” under the prevailing fiscal circumstances.

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