The Union Cabinet on Saturday approved a 2 per cent increase in Dearness Allowance (DA) for central government employees and pensioners, offering relief amid rising inflation. The hike, which is linked to the Consumer Price Index for Industrial Workers (CPI-IW), will result in a modest increase in salaries and pensions.
Dearness Allowance is revised twice a year—typically in January and July—to offset the impact of inflation on earnings. However, this time the announcement saw a delay, drawing concern from employee unions, including the Confederation of Central Government Employees and Workers, which had flagged the deviation from the usual schedule.
Alongside the DA hike, the Cabinet cleared several key decisions aimed at boosting infrastructure and economic resilience. Among them is the approval of a ₹13,000 crore Sovereign Maritime Fund, designed to provide stable and affordable insurance coverage for Indian-flagged vessels and ships operating to and from the country. The move is expected to strengthen India’s maritime sector and reduce dependency on foreign insurers.
The Cabinet also approved the extension of the Prime Minister Gram Sadak Yojana (PMGSY) till 2028, with an additional allocation of ₹3,000 crore to accelerate rural road connectivity across the country.
During the meeting, the Prime Minister also took aim at the Opposition over its stance on the Women’s Reservation Bill, criticising its refusal to support the legislation and warning of political consequences.
The decisions are seen as part of the government’s broader push to balance welfare measures with long-term infrastructure and economic priorities.
