New Delhi, March 19
In a major development that is sure to bring a smile on the faces of over 50 lakh central government employees, the Union cabinet today approved an eight per cent hike in dearness allowance (DA), which will also be applicable for the pensioners. The move will also come as a relief to government employees trying to cope up with spiraling inflation and price hike.

“The cabinet has approved an eight per cent increase in the dearness allowance of government employees and dearness relief of pensioners with effect from January 1, 2010,” Information and Broadcasting Minister Ambika Soni said. “This is over and above the existing rate of 27 per cent (of basic pay),” she said while briefing reporters after a cabinet meeting chaired by Prime Minister Manmohan Singh.

The cabinet also approved a proposal from the Ministry of Youth Affairs and Sports for providing a budget of Rs 687.06 crore for ‘Overlays’ -- to be provided to the organising committee handling the Commonwealth Games. This proposal is being made in the context of the decision of the government to organise the Commonwealth Games 2010 (in Delhi) and its assurance that all facilities and infrastructure will be provided as per the Commonwealth Games Federation (CGF) and international norms and keeping in view the benchmark set by Melbourne Commonwealth Games 2006 and Beijing Olympics 2008.

Overlays are temporary fittings, fixtures and equipment which are required to make the competition, training and non-competition venues operationally ready for the games.