6% DA enhancement for AP employees
The Cabinet also approved the zero-interest loan scheme for farmers up to Rs one lakh each.
Hyderabad: Andhra Pradesh Cabinet on Monday approved enhancement of dearness allowance (DA) to state government employees by 5.99 percent with retrospective effect from July 1, 2011.
The Cabinet met here under the chairmanship of Chief Minister N Kiran Kumar Reddy after a gap of more than two months and discussed various issues.
Consequent to the decision, the DA component for the employees will increase from the present 29.96 percent to 35.95 percent, according to Information and Public Relations Minister DK Aruna said.
The DA enhancement would cost the exchequer Rs 6015 crore per annum, the Minister told newspersons after the Cabinet meeting.
The Cabinet also approved the zero-interest loan scheme for farmers up to Rs one lakh each. Over 95 lakh farmers would benefit from the scheme while the financial
burden on the state would be Rs 1,500 crore per annum, the minister added.