Cabinet Approves 2% DA Increase and Extends PMGSY-III Deadline
Cabinet approves DA increase, extends PMGSY-III timeline
The Economic Times
Image: The Economic Times
The Indian Cabinet, led by Prime Minister Narendra Modi, approved a 2% increase in dearness allowance for central government employees and pensioners, costing ₹6,791 crore. Additionally, the deadline for the Pradhan Mantri Gram Sadak Yojana-III (PMGSY-III) has been extended to March 2028, with a revised budget of ₹83,977 crore.
- 01A 2% increase in dearness allowance for central government employees and pensioners was approved.
- 02This increase will cost the government ₹6,791 crore.
- 03The Pradhan Mantri Gram Sadak Yojana-III (PMGSY-III) deadline is extended to March 2028.
- 04The revised outlay for PMGSY-III is ₹83,977 crore.
- 05Improved rural connectivity is expected to boost the rural economy and enhance access to essential services.
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On Saturday, the Cabinet Committee on Economic Affairs (CCEA) in New Delhi, chaired by Prime Minister Narendra Modi, approved a 2% increase in dearness allowance (DA) and dearness relief (DR) for central government employees and pensioners. This increase, effective from January 1, will incur an additional expenditure of ₹6,791 crore, benefiting over 5.05 million employees and 6.83 million pensioners. The DA was last revised in October 2025. In addition, the Cabinet extended the deadline for the Pradhan Mantri Gram Sadak Yojana-III (PMGSY-III) to March 2028. The scheme's budget has been revised to ₹83,977 crore, with the Centre contributing ₹54,848 crore and states ₹29,129 crore. This extension aims to enhance rural connectivity, thereby boosting the rural economy and improving access to essential services such as education and healthcare, particularly in remote areas.
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The increase in dearness allowance will provide financial relief to government employees and pensioners amidst rising inflation. The extension of PMGSY-III will enhance rural infrastructure, improving access to markets and essential services, which could lead to increased rural incomes.
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