The new rates will be applicable retrospectively from July 1, 2023, Union information and broadcasting minister Anurag Thakur said after the Cabinet meeting. The decision will have an annual impact of ₹12,857 crore on the exchequer.
The Cabinet, chaired by Prime Minister Narendra Modi, took the decision in the view of the three-month long festive season that includes Navratra, Diwali, Chhatt Puja, Gurupurab and Christmas, an official said requesting anonymity.
The decision to raise DA comes week after the Election Commission announced assembly polls in five states - Mizoram, Chhattisgarh, Madhya Pradesh, Rajasthan and Telangana starting from November 7 and lasting through the month.
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