The central government has increased the dearness allowance of central employees by 3% ahead of Diwali and Dussehra. This increase will come into effect from July 1st. Employees will receive three months' arrears.
This decision was taken in a cabinet meeting chaired by PM Modi on Wednesday. The dearness allowance will now increase from 55% to 58%.
This will benefit 4.92 million central employees and 6.87 million pensioners. This will result in a burden of ₹10,084 crore on the central government's treasury.
Dearness allowance increased by 2% six months ago
In March, dearness allowance was increased by 2%. At that time, it was the lowest increase in seven years. Usually, dearness allowance increases range between 3% and 4%, but at that time, the increase was only 2%.
DA is given to combat inflation.
Dearness Allowance (DA) is given to maintain the standard of living of government employees and pensioners despite rising inflation. DA rates are determined based on the All India Consumer Price Index (AICPI) and are updated every six months.
What is the All India Consumer Price Index?
There are two types of inflation in India: retail and wholesale inflation. Retail inflation is based on prices paid by consumers. It is also known as the Consumer Price Index (CPI).
Approval for 57 New Kendriya Vidyalayas
The Cabinet meeting approved 57 new Kendriya Vidyalayas. Seven of these will fall under the Ministry of Home Affairs.
The remaining 50 will be managed by state governments. Twenty of these schools will be opened in districts where no Kendriya Vidyalayas already exist.
Plan to Become Self-Sufficient in Pulses
An announcement of a ₹11,440 crore plan to achieve self-sufficiency in pulses. It will be fully implemented in 6 years.
The MSP limit for government procurement of pulses under the PM ASHA Guarantee Scheme has been increased from ₹45,000 crore to ₹60,000 crore.
Wheat MSP increased by ₹160 per quintal
The minimum support price (MSP) for wheat for 2026-27 has been increased by 6.59 percent to ₹2,585 per quintal.
Last year, the MSP for wheat for 2025-26 was fixed at ₹2,425 per quintal.
The government has set a record wheat production target of 119 million tonnes for the 2025-26 crop year (July-June).
National Highway-715 Widening Plan Approved
The Cabinet approved the four-laning of the 86-kilometer stretch between Kaliabor and Numaligarh on NH-715.
This highway connects Tezpur and Jhanji. Currently, some of the stretch is two-lane. This will cost ₹6,967 crore.
Boosting the Biomedical Research Program
The third phase of the Biomedical Research Career Program has also been approved, with an expenditure of ₹1,500 crore.
The first two phases have been completed, with the government spending a total of ₹2,388 crore and issuing 721 grants.
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Under the third phase, 401 researchers will be supported for six years. This includes 192 research fellowships, 106 grants, and 103 research management grants.
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