AGARTALA, June 10 (TIWN): No Dearness Allowance (DA) for state government employees was allowed in the crucial meeting of the state cabinet on Tuesday. The meeting was expected to deliver on DA or grade pay from several quarters. Finance Minister Bhanulal Saha, however, stated later this afternoon that the government would maintain the tradition of giving DA for state government employees in July.“We are not in a position to allow DA to the employees right away. The government recently announced a healthcare assistance scheme for people from the poor section incurring an additional expense of Rs. 27.5 crores annually”, Finance Minsiter Saha said.

He added that a recent introduction of mustard oil and lentil pulses in the essential commodities list distributed through public distribution system is estimated to incur an annual expenditure of Rs. 40.5 crores. “With all these extra expenditure, the state government is not in a position to consider DA and other legitimate demands of the employees right away”, Saha said.

The Finance Minister, however, confirmed that the Department is committed to maintain the tradition of allowing DA to employees in January and July. “The Finance Department is considering the financial situation to figure out viability of DA allowance to the employees. We are hopeful of allowing DA to state government employees”, the minister said.

Tripura is currently allowing 57 percent DA to the state government employees including 10 percent DA allowed in December last year. The state is still lagging behind the central government DA rate by 43 percent

The central government notified its decision to raise dearness allowance (DA) from 90 percent to 100 percent with effect from January 01 2014, benefiting its 50 lakh employees and 30 lakh pensioners.

A recent exercise found that Tripura would need an additional annual financial involvement of Rs. 1,300 crores to provide DA to state government employees at par with the central government.