Salary and Pension Hike for Central Government Employees
The Indian government has approved a significant increase in Dearness Allowance (DA) and Dearness Relief (DR) for central government employees and pensioners, impacting over 115 million beneficiaries. The revised rates will take effect from April 2025, with arrears for the previous three months included in the salary and pension calculations. This adjustment, announced by Union Information and Broadcasting Minister Ashwini Vaishnaw, follows the previous DA hike in July 2024, which raised the rate from 50% to 53%. The financial implications of the increase are projected to cost the exchequer ₹6,614.04 crore annually. The decision aligns with the 7th Pay Commission recommendations, ensuring compensation for inflationary pressures and improving living standards for public sector workers.
Infrastructure Development in Bihar
A major infrastructure initiative has been approved to enhance connectivity in Bihar through a 120.10 km four-lane highway project spanning Patna-Arrah-Sasaram. Funded under the hybrid annuity model (HAM), the ₹3,712.40 crore project includes ₹718.97 crore for land acquisition and ₹2,989.08 crore for civil works. This development aims to alleviate traffic congestion in urban centers like Arrah, Grahini, and Sasaram, where current travel times between key cities exceed three hours. The corridor will integrate with national highways such as NH-19 and NH-319, improving access to regions like Kaimur and Aurangabad. The project is expected to boost regional economic activity and reduce travel times significantly.
Government’s Focus on Public Sector Welfare
The dual announcement underscores the government’s commitment to balancing fiscal responsibility with social welfare. By aligning DA/DR adjustments to the 7th Pay Commission framework, officials aim to address inflationary concerns while managing public expenditure. The Bihar highway project exemplifies infrastructure investment to support economic growth in underdeveloped regions. The combined measures reflect a strategy to enhance employee satisfaction and improve transportation networks, which are critical for both public service delivery and regional development. Analysts suggest these decisions will have long-term benefits for both workers and local economies.
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