The Union cabinet on Friday approved four per cent hike in dearness allowance (DA) for central government. With this increase, the DA has now reached 21 per cent, and will benefit 48 lakh government employees and 65 lakh pensioners.

“The Union Cabinet has approved four per cent hike in dearness allowance (DA) for central government employees,” Union minister Prakash Javadekar said at a press conference with Finance Minister Nirmala Sitharaman. The hike in DA will be applicable from January 1, 2020.

He further said the government will incur Rs 14,595 crore additional expense on account of this hike.

Talking about the other proposals cleared by the cabinet, Javadekar said, “The Cabinet has approved building 780-km ‘green’ National Highway project at a cost of Rs 7,660 crore.”

The project pertains to rehabilitation and upgradation of various national highways covering a total length of over 780 kilometre in four states – Himachal Pradesh, Rajasthan, Uttar Pradesh and Andhra Pradesh.