7th Pay Commission DA Hike: Modi Government Announces Rs. 100 Extra Subsidy on LPG Cylinders After Rakshabandhan

In a significant move following the festive season of Rakshabandhan, the Central government, under the leadership of Prime Minister Narendra Modi, has announced an additional subsidy of Rs. 100 on LPG cylinders. This extra subsidy will be extended to beneficiaries of the Ujjwala Yojana, providing much-needed relief to millions of households. Now, the anticipation is building among Central government employees and pensioners for an increase in Dearness Allowance (DA) and Dearness Relief (DR) from July 1, the start of the second half of the year.

Cabinet Announcement Expected During Navratri

According to media reports, the Central Cabinet may announce the hike in DA and DR for government employees during the Navratri festival. In recent years, the Central Cabinet has often made such announcements during the festive season of Navratri, bringing cheer to government employees. Therefore, there is hope that the government may share the good news for government employees after October 15.

DA Hike Before Election Notifications!

However, if the announcement coincides with the election notifications for five states, it could pose a significant challenge for the government. The government is likely aiming to announce the DA hike before the election notifications are issued to avoid complicating matters. It’s worth noting that the government announces DA revisions twice a year. The first announcement typically happens around March, with the revised rates coming into effect from January 1. The second announcement, expected in October, takes effect from July 1, benefiting more than one crore government employees.

Expected DA Hike of 45%

At present, government employees and pensioners are receiving DA at a rate of 42%. However, this time, there is speculation that the DA could be increased to 45%. Employee unions have been demanding a 4% hike in DA. If the DA is indeed increased by three percentage points, over 47 lakh government employees will benefit from it starting July 1. Similarly, more than 68 lakh pensioners will receive arrears on their increased DR from July 1.

Reduced LPG Cylinder Price of Rs. 603

In recent days, the price of domestic LPG cylinders in Delhi stood at Rs. 1,103. The government had previously announced a subsidy of Rs. 200 for beneficiaries of the Ujjwala Yojana, bringing the effective price down to Rs. 903. However, on the occasion of Rakshabandhan, the government has declared a Rs. 200 reduction in the cylinder price. As a result, the regular LPG cylinder now costs Rs. 903, while Ujjwala beneficiaries will pay Rs. 703 after factoring in the subsidy. With an additional subsidy of Rs. 100, the effective cost of a cylinder has now been reduced to Rs. 603.

Conclusion

The government’s decision to provide an extra subsidy on LPG cylinders comes as a relief to households, especially in these challenging times. The anticipation for the DA hike among government employees and pensioners is growing, and the timing of the announcement will be crucial. As the government prepares for the upcoming state elections, it remains to be seen when the DA hike will be officially announced.