New Delhi, Mar 15 (UNI) The Union Cabinet today gave its approval for release of an additional instalment of dearness allowance to Central Government employees and dearness relief to pensioners, as due from January 1, 2007, in cash at the rate of 6 per cent over the existing rate of 29 per cent.

Minister for Information and Broadcasting Priya Ranjan Dasmunsi told newspersons here that the rate of dearness allowance and dearness relief from this date will be 35 per cent for all Central Government employees and pensioners and family pensioners of the Central Government, which constitutes an increase of 6 per cent over the existing rate of 29 per cent.

Mr Dasmunsi said the additional financial implications on account of this increase of Dearness Allowance has been estimated at Rs.

2,265.12 crore per annum; and Rs. 2,642.64 crore in the financial year 2007-08 ( that is for a period of 14 months from January 2007 to February, 2008).

The additional financial implications on account of this increase of Dearness Relief to pensioners have been estimated at Rs 1,079.08 crore per annum, and Rs. 1,257.78 crore in the financial year 2007-08.

Thus, the total impact on the exchequer on account of both dearness allowance and dearness relief would be of the order of Rs.

3,343.2 crore in a full year and Rs. 3,900.425 crore in the financial year 2007-08.

Dearness Allowance to Central Government employees is revised twice a year from January 1, and July 1. This is payable with the salary for the months of March and September respectively on the basis of the recommendations of the Fifth Central Pay Commission.

UNI