Delay in Announcing DA for July 2016

The Central Government is tactically delaying the announcement of DA for July 2016 installment. The Department of Expenditure has requested the PRU (Pay Research Unit functioning under Finance ministry ) to submit the report of Financial Implications of granting 1% DA with effect from 1.7.2016.

It is not understood that why the govt unnecessarily trying to lower the rate of DA to be paid to CG Staff?

DA Calculation For 7th CPC

After revising the Pay by neutralising DA , the methodology to calculate the dearness allowance in 7th CPC should be arrived. But so far the govt didn’t take any decision in that.

Since the Pay has been revised by including of 125% DA with effect from 1.1.2016, the AICPIN Average for the year 2015 has to be taken as Base Index for calculating DA.

As per this calculation, 2% DA to be granted from 1.7.2016. But the Government hasn’t taken any decision for announcing DA from July 2016. But a Letter of Department of Expenditure, circulated in Social media was asking the PRU, the details of financial Implications for 1% DA for 8 months w.e.f 1.7.2016.

Whether it is usual practice to assess the Financial Implications for every percentage of DA ? Otherwise it might be unfair, if govt decide to pay 1% DA from 1.7.216. The CG Staff already in frustration due to the 7th CPC impact. So it may not be wise decision if Govt try to declare 1% DA from July 2016.

Source: Gservants.com