Kerala Approves DA and DR Hike for Employees and Pensioners

Rapid Summary

• The Kerala government has sanctioned one instalment of dearness allowance (DA) for government employees and teachers, as well as dearness relief (DR) for service pensioners, ahead of the Onam festival.
• Employees under University Grants Commission (UGC), All India Council for Technical Education (AICTE), and Medical Services are also eligible for the DA and DR benefit.
• Finance Minister K.N. Balagopal announced that these payments will be disbursed with salaries and pensions on September 1.
• The decision will incur an additional expenditure of ₹2,000 crore by the State government.
• This is the second instalment of DA/DR released this year. Previously, Chief Minister pinarayi Vijayan had informed the Legislature about seven pending instalments and committed to releasing two rounds annually, starting in 2024.

Indian Opinion Analysis
The sanctioning of dearness allowance (DA) and relief instalments reflects a necessary step by Kerala’s government to address inflationary pressures on its employees ahead of Onam-a culturally significant period in Kerala’s calendar that frequently enough entails increased spending needs among households across sections of society. While this measure prioritizes immediate financial support for salaried personnel and pensioners, it also comes with a high fiscal cost-₹2,000 crore-which highlights ongoing budgetary challenges stemming from arrears accumulated over multiple years.

The gradual approach chosen by Kerala’s administration-releasing two instalments annually to address pending dues-is structured but may face criticism if fiscal constraints delay further releases or hinder other developmental priorities within its governance framework.For more details: Read More.