Dearness Allowance: The heartbeats of central employees are increasing the retail inflation rate, why is there doubt on the intentions of the government?

Government employees fear that their DA rates may be cut. The government may announce the DA increase during Navratri next week. Last year, the Union Cabinet announced a four per cent increase in DA rates on September 28, before Diwali.

Why is there doubt about central government employees and pensioners getting a 4 per cent dearness allowance/dear relief from July 1st? There are two types of discussions among the employees. One is that this time, the employees will get three per cent DA, and second, the DA rates will increase by four per cent. Since the Corona period till now, DA rates have been rising by four per cent. Leaders of employee organisations believe that by saying that retail inflation will be low, the government can cut back on the DA of the employees. However, I would like to let you know that this DA is to be met from July 1st. That means the inflation graph before July affects its decrease or increase.

Food inflation was 6.56 per cent in September.
A decline in retail inflation has been recorded during September. This rate decreased from 6.83 per cent to 5.02 per cent during August. Food inflation stood at 6.56 per cent in September, which was 9.94 per cent in August. If we look at the retail inflation rate for September in rural and urban areas, it was 5.33 per cent and 4.65 per cent, respectively. Reserve Bank of India Governor Shaktikanta Das had expressed hope that inflation will come down from September. Consumer Price Index-based inflation may decline to 5.5 per cent in the December quarter from 6.6 per cent in the September quarter. It is expected to decrease to 5.1 in the March 2024 quarter. In the first half of the year 2024-25, the retail inflation rate may remain between 5.2 and 4.0. Due to all this, government employees fear that their DA rates may be cut. The government may announce the DA increase during Navratri next week. Last year, the Union Cabinet announced a four per cent increase in DA rates on September 28, before Diwali. Last year, Diwali was on 24 October; hence, the government announced DA/DR in the last week of September. This time, Diwali is on 12th November.

Will get the gift of a 4 per cent DA increase
According to C. Sreekumar, General Secretary of All India Defense Employees Federation (AIDEF), this time, the DA of the personnel will increase from 42 to 46 per cent. The central government will increase DA by four per cent. There was an increase of four per cent in the said allowance from January 2023. At present, dearness allowance is being given at the rate of 42 per cent. Now, there is a possible increase of four per cent in the allowance from July 2023. According to the data released by the National Statistical Office (NSO) of the Ministry of Statistics and Program Implementation, the All India Consumer Price Index (CPI) rate of inflation, including urban and rural areas, in July 2023 (provisional) has been 7.44 per cent. The combined CPI rate in June 2023 (final) was 4.87 per cent. The same combined rate in July 2022 was 6.71 per cent. The combined rate of the Consumer Food Price Index (CFPI) in July 2023 (provisional) was 11.51 per cent, while the combined CFPI rate in June 2023 (final) was 4.55 per cent. The combined CFPI rate in July 2022 was 6.69 per cent. In CPI (General) under April 2023 (absolute), the figure for rural areas is 178.8 per cent, urban areas are 177.4 and combined is 178.1 per cent. If compared to May 2023 (provisional), the figure was 179.7 per cent in rural areas and 178.1 per cent in urban areas. Combined, this number has been 179.0. Under the CFPI, the figure for rural areas in April 2023 is 173.7 per cent, for urban areas 180.0 and a combined 175.9 per cent. Data for May 2023 (provisional) show that the CFPI in rural areas was 174.9. In urban areas, this number was 181.1 per cent, and overall, this number was 177.1.