What Is Govt Doing On Payment Of 18-Month DA Arrears Withheld During Covid? Here’s Finance Ministry Latest Response On Rs 34,402 Cr Dues | Personal Finance News

The MPs requested an explanation from the government asking why the third-largest economy in the world was not able to release the withheld arrears. The MPs also asked for specifics of the representations made in this regard from 2024 to the present, as well as the measures implemented.

Union Minister of State for Finance Pankaj Chaudhary, in a written response to the Rajya Sabha on the matter, said, “The decision to freeze three installments of Dearness Allowance(DA)/Dearness Relief (DR) to Central Government employees/pensioners due from 01.01.2020, 01.07.2020 and 01.01.2021 was taken in the context of COVID-19, which caused economic disruption, to ease pressure on Government finances.” 

On the query of representations received in this regard during 2024 till date and the action taken, the minister said “Representations have been received during 2024 from Government employees’ associations including the National Council of Joint Consultative Machinery (NCJCM). As the adverse financial impact of pandemic in 2020 and the financing of welfare measures taken by Government had a fiscal spill over beyond FY 2020-21, arrears of DA/DR were not considered feasible.”

How much has been saved on account of the 18-month DA freezing?

On account of the freezing of three installments of DA, the government saved an amount of Rs 34,402.32 crore. The Centre utilized the fund to tide over the economic impact of the COVID-19 pandemic. 

Akhilesh Yadav slams Centre over unpaid DA arrears to govt employees

Meanwhile, Samajwadi Party chief Akhilesh Yadav also slammed the Centre for freezing the DA arrears of central government employees and pensioners and questioned its claim of being a “global economic superpower”.

“Does the government’s claim of becoming a ‘global economic superpower’ mean that employees do not get their dues? The central government’s refusal to pay 18 months DA arrears to central employees is, in a way, a denial of ‘government guarantee’,” Yadav tweeted via a post on X.