**Summary:**
This document summarizes the Indian government's response to Lok Sabha Unstarred Question No. 3638, posed on August 11, 2025, regarding the Dearness Allowance (DA) and Dearness Relief (DR) arrears for Central Government employees and pensioners during the COVID-19 pandemic.
The Minister of State in the Ministry of Finance, Shri Pankaj Chaudhary, stated that the decision to freeze three installments of DA/DR due from January 1, 2020, July 1, 2020, and January 1, 2021, was a measure taken due to the economic disruption caused by COVID-19, aimed at easing pressure on government finances.
While the fiscal deficit has narrowed from 9.2% in FY 2020-21 to a budgeted 4.4% in FY 2025-26, the adverse financial impact of the pandemic and the financing of welfare measures resulted in a fiscal spillover beyond FY 2020-21. Consequently, the release of the 18 months DA/DR arrears was deemed not feasible.
Key Entities Referenced
Ministry of Finance: A department of the Government of India responsible for financial matters.
Department of Expenditure: A department under the Ministry of Finance, Government of India.
Lok Sabha: The lower house of the Parliament of India.
Shri Anand Bhadauria: Member of Parliament who raised the question about DA arrears.
COVID19: The coronavirus disease 2019 pandemic that caused economic disruption.
Dearness Allowance (DA): A cost of living adjustment allowance paid to Central Government employees.
Dearness Relief (DR): A cost of living adjustment allowance paid to pensioners.
Shri Pankaj Chaudhary: Minister of State in the Ministry of Finance who provided the answer.
Government of India
Ministry of Finance
Department of Expenditure
Lok Sabha
Un-Starred Question No 3638
To be answered on Monday, 11th August, 2025
Sravana 20, 1947 (Saka)
DA Arrears for Central Government Employees during COVID-19
3638. Shri Anand Bhadauria :
Will the Minister of FINANCE be pleased to state :
(a) whether the decision to freeze 18 months dearness allowance and dearness
relief for Central Government employees and pensioners during COVID-19
were taken due to economic disruption and to ease pressure on Government
finances;
(b) if so, whether fiscal condition of the Government is still under pressure and is
on the verge of bankruptcy;
(c) if so, the details thereof and the reasons for failure of the Government to keep
the robust fiscal condition of the country upto the mark which it inherited in
legacy in 2014; and
(d) if not, the time by which the Government would release the arrears of 18
months DA/DR?
Answer
Minister of State in the Ministry of Finance
(Shri Pankaj Chaudhary)
(a) The decision to freeze three instalments of Dearness Allowance (DA) / Dearness
Relief (DR) to Central Government employees / pensioners due from 01.01.2020,
01.07.2020 & 01.01.2021 was taken in the context of COVID-19, which caused
economic disruption, so as to ease pressure on Government finances.
(b)& (c) The fiscal deficit of the Government of India has narrowed from 9.2 per cent in
the Financial Year (FY) 2020-21 to 4.4 per cent in the FY 2025-26 (Budget
Estimates).
(d) The adverse financial impact of pandemic in 2020 and the financing of welfare
measures taken by the Government had a fiscal spill over beyond FY 2020-21.
Therefore, arrears of DA/DR were not considered feasible.
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