Government staff to get 5.13 % hike in DA

HYDERABAD: The State Cabinet which met here on Tuesday has approved increase in Dearness Allowance (DA) by 5.13 per cent to all the government employees with effect from January 2011.Briefing the media on the decisions taken by the Cabinet, minister for information and public relations D K Aruna said the increased DA will be paid to all the government employees from January this year. With this hike, the DA has been increased to 29.96 per cent from the earlier 24.82 per cent. The additional burden on the government exchequer on account of the hike will be around Rs 1,194 crore per annum, she said.She further said that the increased DA from January to April this year will be credited into the GPF account of the employees. From May onwards, the employees will be paid the DA along with the salaries. Extension of reservations in Services and Educational Institutions to Backward Classes for a further period of 10 years with effect from June 1, 2011, request for more cash credit from RBI for purchase of paddy, Amendment of Andhra Pradesh Payment of Salaries and Pension and Removal of Disqualification Act-1953 for Enhancement of accommodation of allowance were among the other decisions.The Cabinet has decided that the government will take up Indira Jala Prabha scheme to bring 10 lakh acres of land under cultivation belonging to weaker sections. The scheme would be taken up in two phases during 2011-15 with an estimated cost of Rs 1,600 crore. A fund of Rs 800 crore each would be provided through NREGS and NABARD schemes.The Cabinet has decided to promulgate an ordinance to amend the Andhra Pradesh Payment of Salaries and Pension and Removal of Disqualifications Act 1953, enhancing the accommodation allowance from Rs 3,000 to Rs 10,000 per month for the MLAs, and MLCs who have not availed government accommodation. They would get additional allowance of Rs 1000 each towards power and water charges.With regard to paddy procurement in the Rabi this year, the Cabinet has decided to request RBI to increase the cash credit limit for paddy purchases in June this year.