Arrears of DA/DR frozen during COVID-19 : Parliament Question

QUESTION

a) Whether dearness allowance and dearness relief for Central Government employees and pensioners during the Covid-19 were withheld for 18 months but not seized;
b) If so, the details thereof and the reasons for its seizure by the Government;
c) Whether the Government would release the same to ensure spending by the Government employees and thereby help in boosting the faltering economy of the Country;
d) If so, the details thereof ;
e) If not, the reasons therefor?

ANSWER

(a) & (b) The decision to freeze three installments of Dearness Allowance (DA) / Dearness Relief (DR) to Central Government employees/ pensioners due from 01.01.2020, 01.07.2020 & 01.01.2021 was taken in the context of COVID-19, which caused economic disruption, so as to ease pressure on Government finances.
(c) No.
(d) Does not arise.
(e) The adverse financial impact of pandemic in 2020 and the financing of welfare -measures taken by the Government had a fiscal spill over beyond FY 2020-21. Therefore, arrears of DA/DR were not considered feasible.