7th Pay Commission: For a long time, there has been an increase of four percent in DA/DR i.e. ‘Dearness Allowance and Dearness Relief’ of government employees and pensioners. At present, central employees are getting dearness allowance at the rate of 42 percent.
There is news of relief for more than one crore employees and pensioners in the central government. From July 1, a four per cent increase in Dearness Allowance (DA) and Dearness Relief (DR) is almost certain. This increase can be approved in the Union Cabinet meeting to be held after the G20 summit. With this increase, the ‘DA’ of central employees will reach from 42 to 46 percent. In view of the current situation of inflation, after about 120 days the DA of central employees will be 50 percent.
According to the report of the Seventh Finance Commission, if this happens then the remaining allowances will also automatically increase by 25 percent. Now the reason for increasing DA by four percent is the All India Consumer Price Index (Industrial Workers) of July 2023. This index has increased by 3.3 points to 139.7 points during July, while the All India CPI-IW for June, 2023 has increased by 1.7 points to 136.4.
Now getting dearness allowance at the rate of 42 percent
Let us tell you that for a long time, there has been an increase of four percent in DA/DR i.e. ‘Dearness Allowance and Dearness Relief’ of government employees and pensioners. At present, central employees are getting dearness allowance at the rate of 42 percent. Data released under All India Consumer Price Index (CPI) and Consumer Food Price Index (CFPI) show that the dearness allowance of employees may increase at the rate of four percent. That means the DA/DR rate of employees can reach 46 percent. However, the final decision in this regard will be taken by the Union Cabinet. DA-DR increases every year in January and July.
CPI rate in July has been 7.44 percent
According to the data released by the National Statistical Office (NSO) of the Ministry of Statistics and Program Implementation, the All India Consumer Price Index (CPI) rate of inflation, including urban and rural areas, in July 2023 (provisional) has been 7.44 percent. The combined CPI rate in June 2023 (final) was 4.87 per cent. The same combined rate in July 2022 was 6.71 percent. The combined rate of Consumer Food Price Index (CFPI) in July 2023 (provisional) was 11.51 per cent, while the combined CFPI rate in June 2023 (final) was 4.55 per cent. The combined CFPI rate in July 2022 was 6.69 per cent.
CFPI monthly change has been 6.66 percent
According to the National Statistics Office of the Ministry of Statistics and Program Implementation, the combined CPI rate for July 2023 (provisional) for urban and rural areas under the index has been 186.3 percent. The combined CPI rate in June 2023 (final) was 181.0 percent. In July 2022, the same combined rate was 173.4 percent. The combined rate of Consumer Food Price Index (CFPI) in July 2023 (provisional) was 193.8. The combined CFPI rate in June 2023 (final) was 181.7 percent. The combined CFPI rate in July 2022 was 173.8 percent. Monthly changes have been observed in All India Consumer CPI (General) and CFPI for July 2023 as compared to June 2023. Under the index, a combined change of 2.93 percent has been observed in CPI (General) including urban and rural areas in July 2023 (provisional) and June 2023 (final). Similarly, the combined monthly change of CFPI has been 6.66 percent.
Compiled at the level of 139.7 points in July
Let us tell you that the Consumer Price Index for industrial workers is compiled every month by the Labor Bureau Office on the basis of retail prices collected from 317 markets of 88 important industrial centers spread across the country. This data is released on the last working day of every month. The All India Consumer Price Index (Industrial Workers) for July 2023 has increased by 3.3 points to 139.7 points. The index has increased by 2.42 percent compared to the previous month. An increase of 0.90 percent was recorded between these two months a year ago. The All India CPI-IW for June 2023 was up by 1.7 points at 136.4.
Contribution of Food and Beverages Group
The food and beverages group has contributed the maximum to the increase recorded in the index. This affected the total change by 2.86 percentage points. Various items include rice, arhar, dal/toor dal, apple, mango, brinjal, garlic, ginger, gourd, green chilli, potato, onion, tomato, cumin, betel nut, saree cotton, ready made shirts/t-shirts, school uniform, leather Sandals, slippers, canvas shoes, house rent, auto rickshaw fare, repair/service charges, utensils, and allopathic medicines etc. have been helpful in increasing the index. On the contrary, mainly electricity (domestic charges) and kerosene etc. have controlled the growth recorded in the index.
Maximum increase of 8.3 points in the index
At the central level, Gurugram’s index has increased by a maximum of 8.3 points. Others were 7.9 points out of seven in three centres, 6 to 6.9 points in four centres, 5 to 5.9 points in ten centres, 4 to 4.9 points in fifteen centres, 3 to 3.9 points in 14 centres, 2 to 2.9 points in 25 centres, There has been an increase of 1 to 1.9 points in 9 centers and between 0.1 to 0.9 points in 4 centres. On the contrary, a decrease of 1.0 points has been recorded in Keonjhar. The index of the remaining two centers has remained stable. The inflation rate for July 2023 is 7.54 percent compared to 5.57 percent last month and 5.78 percent in the same month last year. The food inflation rate has been 11.87 percent as compared to 6 percent last month and 5.96 percent in the same month a year ago.