Not necessary at this stage to halt DA/DR hikes, says Manmohan Singh

"I sincerely believe it is not necessary at this stage to impose hardships on government servants and also on the armed forces people," the former PM said.

Two days after the central government put on hold the increment in dearness allowance (DA) and dearness relief (DR) for central government employees and pensioners till July 2021, former prime minister Manmohan Singh Saturday said it was unnecessary to impose hardships on them at a time when India was fighting the coronavirus pandemic.

“I sincerely believe it is not necessary at this stage to impose hardships on government servants and also on the armed forces people,” Singh said.

Congress leader Rahul Gandhi had also termed the move as “insensitive” and “inhumane” and said the government should shelved the bullet train and Central Vista redevelopment projects to save money instead of hurting middle-class employees and pensioners.

On Thursday, the central government decided to freeze the increment in DA for 48 lakh central government employees and DR for 65 lakh pensioners till July 2021. While the increase is being held back, DA and DR at current rates will continue to be paid. Government sources told The Indian Express the savings on account of freezing of these installments would be Rs 37,530 crore in the current financial year and 2021-22.

“The unprecedented situation arising from the COVID-19 pandemic has placed huge additional demands on government finances. There is need for major increase in the expenditure on health as well as on welfare measures for various affected sections of society including the poor and vulnerable,” sources said, justifying the decision.

As states generally follow the Centre on DA and DR decisions, it is expected that states may also announce similar decisions. It is estimated that the savings on suspension of these instalments by state governments will be Rs 82,566 crore, sources added.

The 4 per cent DA hike for central government employees was announced last month effective from January 1, 2020.

Two days ago, at a meeting of the Congress Working Committee (CWC), Singh had said that co-operation between the Centre and states was essential in the fight against the pandemic.