Big Announcement! Govt clarifies not to release 18-month frozen DA arrears for central government employees

During the covid-19 pandemic, DA arrears to the central government workers and pensioners were suspended for 18 months. After a long wait, the government has finally clarified that it will not be paying the central government employees the 18-month frozen DA arrears.

Justifying the same the govt replied in Lok Saba that the arrears of DA/DR, which mostly relate to the challenging FY of 2020-21, are not regarded as feasible due to the negative financial impact of the pandemic in 2020 and the funding of the welfare measures implemented by the government having a fiscal spillover beyond FY 2020-21.

On being asked to brief the reason, Union Minister of State for Finance Pankaj Chaudhary stated that the decision to freeze three installments of DA/DR to Central Government employees/pensioners that have been due so far was taken in the context of COVID-19. As the pandemic caused an economic disruption, the decision was taken to ease the pressure on Government finances.

“As the adverse financial impact of the pandemic in 2020 and the financing of welfare measures taken by the Government had a fiscal spillover beyond FY 2020-21, arrears of DA/DR which mostly pertain to the difficult FY of 2020-21 are not considered feasible. Even now the fiscal deficit of the Government is running at more than double the level envisaged in the FRBM Acct,” Pankaj Chaudhary added.

He further added, “Does not arise. However, an amount of Rs.34402.32 crores had been saved and utilized to tide over the economic impact of the COVID-19 pandemic on account of freezing of three installments of Dearness Allowance and Dearness Relief payable to Central Government employees and pensioners.”

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