New Delhi: The Union Cabinet today approved the release of an additional instalment of Dearness Allowance (DA) to Central Government employees and Dearness Relief (DR) to pensioners with effect from January 1, 2024, representing an increase of 4% over the existing rate of 46% of the Basic Pay/Pension, to compensate against price rise.
The combined impact on the exchequer on account of both DA and DR would be Rs.12,868.72 crore per annum. This will benefit about 49.18 lakh Central Government employees and 67.95 lakh pensioners. The increase is “in accordance” with the accepted formula, which is based on the recommendations of the 7th Central Pay Commission.
The Union Cabinet today also approved the continuation of a targeted subsidy of Rs.300 per 14.2 kg cylinder (and proportionately pro-rated for 5 kg cylinder) for up to 12 refills per year to be provided to the beneficiaries of Pradhan Mantri Ujjwala Yojana (PMUY) during FY 2024-25. As of March 1, 2024, there are more than 10.27 crore PMUY beneficiaries.
The total expenditure will be Rs.12,000 crore for the financial year 2024-25. The subsidy is credited directly to the bank accounts of the eligible beneficiaries.
To make Liquified Petroleum Gas (LPG), a clean cooking fuel, available to rural and deprived poor households, the Government launched the Pradhan Mantri Ujjwala Yojana in May 2016, to provide deposit-free LPG connections to adult women of poor households.
India imports about 60% of its LPG requirement. To shield PMUY beneficiaries from the impact of sharp fluctuations in international prices of LPG and to make LPG more affordable to PMUY consumers thereby ensuring sustained usage of LPG by them, the Government started a targeted subsidy of Rs.200/- per 14.2 kg cylinder for up to 12 refills per annum (and proportionately pro-rated for 5 kg connections) to the PMUY consumers in May 2022. In October 2023, the Government increased the targeted subsidy to Rs.300 per 14.2 kg cylinder for up to 12 refills per annum (and proportionately pro-rated for 5 kg connections). As on 01.02.2024, the effective price of domestic LPG for PMUY consumers is Rs.603 per 14.2 Kg LPG cylinder (Delhi).
The average LPG consumption of PMUY consumers has increased by 29 per cent from 3.01 refills in 2019-20 to 3.87 refills (till January 2024) prorated for 2023-24. All PMUY beneficiaries are eligible for this targeted subsidy.
– global bihari bureau
