Why is the Dearness Allowance for Central Government Employees Lagging Behind Inflation?
2014, the Dearness Allowance (DA) for central government employees in India stood at a respectable 100%. However, projections suggest a starkly different reality by 2024, with the DA plummeting to just 50%. This raises a crucial question: **why is the DA increase lagging behind inflation and other cost-of-living factors impacting the lives of ordinary citizens?** While the period between 2006 and 2014 saw moderate inflation, things have shifted significantly since then. From 2016 to 2024, inflation has been considerably higher, putting a strain on household budgets across the country. This begs the question: **if inflation is rising, shouldn't the DA be rising too?** Several possible explanations contribute to this puzzling scenario: * **Change in Base Year:** The 7th Pay Commission (CPC) implemented a crucial change: shifting the base year for DA calculation from 2001=100 to 2016=100 as base year.This seemingly technical adjustment resulted in a lower initial DA compared to the 6t