Cabinet meeting Oct 29 headed by PM Modi - Information Minister Ashwini Vaishnaw announced - DA 3% hike ahead of Diwali - effective July 1 2026 arrears July-Oct to be paid November salary.
DA formula - based on All India Consumer Price Index for Industrial Workers - average 12 months - CPI-IW June 2026 - 143.5 - inflation 5.5% 2024-25 — DA calculation — 3% increase.
Benefit - 49 lakh central employees, 68 lakh pensioners - total 1.17 crore - plus defence - armed forces 15 lakh — also.
Fiscal impact - Rs 10,800 crore per year - Rs 6,400 crore employees, Rs 4,400 crore pensioners - for 8 months FY27 - Rs 7,200 crore - manageable within budget - fiscal deficit target 4.5%.
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Also - 8th Pay Commission - terms announced Jan 2025 - to be implemented Jan 1 2026 - actually Jan 1 2027? Panel headed by former Supreme Court judge - will merge DA - DA will become zero after pay commission
Demand - employees union - wanted 4% - citing inflation — but 3% only — says real inflation food 8% CPI-IW understates.
Other cabinet decisions - Rs 7,395 crore for PM Viksit Gram Swaraj Yojana - paradigm shift from prescription-based to local capacity building - Gram Panchayats to prepare GPDP — 2.5 lakh panchayats - training.
News in numbers - Air Algerie resumes direct flights to Tripoli after 12 years - twice weekly - Libya civil war 2014 halted - many airlines suspended - now resumption sign of stability - Government of National Unity.
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UK energy support — Labour govt - £100 to 20 million households - $133 - soaring bills - cost £2 bn - to take pressure off cold months till spring - finance minister John Healey.
India's Diwali sales - expected Rs 1.8 lakh crore - DA hike will boost consumption - consumer durables - TVs, mobiles.
Tags: #DAhike #DearnessAllowance #Cabinet #CentralEmployees #Diwali #Inflation #8thPayCommission #ViksitGram #AirAlgerie #UKEnergySupport