Bihar govt employees get Diwali gift with 5% hike in DA

The government has already made preparations for implementing the enhanced dearness allowance and the proposal will be approved by the Cabinet in next few days.

The Bihar government employees will have a Diwali gift this time in terms of enhanced dearness allowance ( DA) in their salary this month.

Bihar government employees and pensioners will get the enhanced DA from July 1, 2019, the same date from which central government employees get hiked DA. (Getty Images/iStockphoto)

The government has already made preparations for implementing the enhanced dearness allowance and the proposal will be approved by the Cabinet in next few days.

The government has proposed raising the DA by 5% from existing 12%. This means, the revised DA will be 17 %.

Deputy chief minister Sushil Kumar Modi said the enhanced DA to all regular employees and pensioners would be given from July 1, 2019, the same date from which central government employees get hiked DA. The Union government had, earlier this month, announced a 5% in DA for all central government employees.

“The enhanced DA would be reflected in this month’s salary. Instructions have been given for preparing the salary under CFMS and disbursement will start from October 25. This time, salary payment will be made in advance in light of Diwali and Chhath festival,” he said.

Sources said the enhanced DA will cost the state exchequer estimated Rs 1,048 crore and benefit three lakh plus permanent employees of the state government and four-and-a-half lakh retired employees.

Apart from it, the state government spends around Rs 10,000 crore on salary of contractual teachers, while Rs 4,500 crore on salary and establishment cost of universities.

The enhanced DA payout for state employees is certainly a good news for the markets especially consumer goods sector with traders expecting sales of cars, fridge and other items to pick up in coming days ahead of the Dhanteras on October 25. But there are apprehensions that festive buying this time could be tepid owing to the slowdown effect in the economy.

100% monthly targets

Meanwhile, finance officials said the government has so far not suffered any revenue loss with revenue from registration recording almost 100% monthly targets, indicating how the property market in the state is vibrant.

Senior finance officers also maintained the state has received central disbursement on time in terms of grants and matching shares for state and centrally sponsored schemes in the first two quarters. “If there is a shortfall in central disbursement to Bihar for any kind of slowdown effect and revenue shortfall, it will be reflected in December this year or January next year,” said a senior official in the finance department.