Friday, December 21, 2012

West Bengal considering hike in Dearness Allowance

Update on 31.12.12 : D.A. order released
West Bengal finance secretary to attend Cabinet meet
UPDATE : D.A. ANNOUNCED - CLICK FOR DETAILS
Reeling under acute financial crunch, chief minister Mamata Banerjee has set a precedent by instructing the state finance secretary to remain present at the first cabinet meeting of the New Year. It is learnt that the chief minister wants to review the revenue status and focus on generation of non-plan funds to disburse the fresh installment of dearness allowance (DA).
Following Mamata's instruction, chief secretary Sanjay Mitra has asked finance secretary H K Dwivedi to attend the cabinet meeting on January 2. Until now, the chief secretary has been the only bureaucrat attending cabinet meetings in his capacity as the cabinet secretary.
The government is all the more under pressure because of its commitment to release an installment of the pending 27% DA. Mamata wants to clear at least 6% now and another 7% by March. This would add a burden of Rs 100 crore next month. At the end of the current fiscal, the total debt burden will soar to Rs 2,31,203 crore.Since the government can't defer the obligatory payment of DA to the next fiscal, it finds itself in a fix. The government, according to officials in the know, has already been tapping chunks of funds earmarked for developments.
Click here to view the full article published in The Times of India

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