Assam’s 60% DA Hike to Add Rs 49.82 Crore Monthly Burden

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State Debt Rises to Rs 1.62 Lakh Crore

KRC TIMES Assam Bureau

Guwahati | The Assam government will incur an additional expenditure of Rs 49.82 crore every month following the enhancement of Dearness Allowance (DA) and Dearness Relief (DR) to 60 per cent for state government employees and pensioners, the Legislative Assembly was informed  .

Replying to a question raised by Congress MLA Jakir Hussain Sikdar, Finance Minister Jayanta Malla Baruah said the revised DA and DR rates came into effect from June 2026 and were paid along with June salaries and pensions disbursed in July.

The Finance Department had issued the notification for the increase on June 16. According to the minister, the revision will lead to an additional monthly financial burden of Rs 49.82 crore under salary and pension expenditure.

Responding to queries on why the enhanced DA was not implemented from January in line with the Centre, Baruah said decisions regarding salary revisions and employee benefits are taken by the state government based on recommendations of the State Pay Commission and Assam’s fiscal position.

He noted that Assam is among a handful of states that have raised DA and DR to 60 per cent. The minister also updated the House on the government’s proposal to extend the Old Pension Scheme (OPS) to employees whose recruitment process commenced before February 1, 2005.

He said the Finance Department had sought detailed information from all administrative departments in March 2025 following a Budget announcement made under the state’s Astadash Mukutar Unnoyonee Mala initiative.

However, verification of recruitment records dating back more than two decades has proven to be a lengthy exercise. While departments have submitted relevant details, discrepancies have reportedly been detected in several cases involving sanctioned posts, recruitment notifications, declaration of results and dates of joining service.

Baruah said the Finance Department is currently holding consultations with departmental heads and senior officials to verify the records before moving ahead with implementation. “The government remains committed to implementing the proposal and will proceed further after completion of the verification process,” he said.

On the state’s finances, the minister informed the Assembly that actual revenue collection figures for the current financial year would be available only after the Principal Accountant General publishes the annual Finance Accounts.

He added that while details of fund releases under the ceiling system have already been furnished before the House, figures relating to releases under the non-ceiling system would be available only after verification by the Accountant General.

Meanwhile, in written replies to separate questions raised by Opposition legislators, Baruah disclosed that Assam’s outstanding debt has increased substantially over the past decade.

According to the latest figures from the Accountant General, the state’s total liabilities stood at Rs 1,61,761 crore as of March 31, 2025, compared to Rs 35,690 crore on March 31, 2016. The minister clarified that Rs 18,582 crore of the total liabilities comprise interest-free loans with a repayment period of 50 years, reducing the state’s effective interest-bearing debt to Rs 1,43,179 crore.

He further informed the Assembly that Assam paid Rs 9,467.75 crore in interest to various lenders during the 2024-25 financial year.

The disclosures come amid discussions in the Assembly on the state’s fiscal position, employee welfare measures and long-term financial commitments, with the government balancing increased expenditure on salaries and pensions alongside rising debt obligations.

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