As the time of Budget 2025 comes closer, a relief to employees of central and state governments grabbed headlines. Deferment of Dearness Allowance (DA) arrears has borne the centre stage of debate with millions of people still yet to be paid. Latest indications are that an announcement about Budget may offer some relief to paused arrears of 18 months, giving people a financial bailout in light of increased cost of living.
Central Government DA Arrears
Employees of the central government did not receive payment of DA between January 2020 and June 2021 due to increased pressure on the government finances owing to the pandemic. That 18-month suspension amounted to arrears that are close to more than Rs 20,000 crore. The unions of employees are also waiting to see the Union budget approve this backlog in recognition of their tolerance amid the economic instability.
State-Level Update
Four instalments of DA are even overdue in the past 14 months in the state of Andhra Pradesh. The AP Government Employees Federation says that the total amount of dues payable including DA and PRC arrears and leave bills eat up 21,800 crores of rupees. It has had its leadership pressuring the state cabinet meeting on August 6 to clear at least 2 instalments that have been pending.
Government Stance
The Finance Ministry has made it clear even though the pressure is rising, it is not possible to clear 18 months of central DA arrears within the present financial limits. In a Rajya Sabha reply, authorities cited budgetary constraints and promised to look at gradual relief measures rather than a one time outlay.
Financial Impact
It has the potential to inject massive liquidity into the household budgets by disbursing long due DA arrears, provided it counters the flow of inflation. Central employees and pensioners will get lump sum payments in addition to an impending DA increase, likely to end up in better morale and discretionary purchases before the coming festival.
Focused Dates in the Future
During the late 2025 Union Budget presentation, there will be keen interest on whether the arrears of DA will be mentioned. Partial releases may also be determined by the state assemblies such as the August 6 assembly in Andhra Pradesh. The staff members are encouraged to subscribe to official OMC web sites and employee union banners to read up to the minute information.
Comparison of DA Arrears Status
| Category | Arrears Period | Approx Amount (Rs crore) | Status |
|---|---|---|---|
| Central Government Employees | Jan 2020 – Jun 2021 | 20,000 | Under Budget consideration |
| Andhra Pradesh Employees | Jul 2024 – Jun 2025 | 21,800 | Federation demands immediate release |
| Pensioners | Jan 2025 – Mar 2025 | – | Awaiting retrospective benefits |
Tracking developments on DA arrears will help you to be ready any time there is a set announcement. To maintain your legitimate dues updated and accordingly on your financial plans, keep yourself abreast to developments in terms of Budget relases and official state government announcements.