New Delhi, Oct 10: Government on Wednesday virtually ruled out any Dearness Allowance Freeze and set at rest speculation about reduction in retirement age of its employees by two years to 58 as part of cost cutting measures. Official sources said that the finance ministry had not moved any proposal for DA freeze nor had the issue come up before the cabinet.
The proposal, however, came up during last month's meeting of state finance ministers as a step to improve the financial health of state governments and many of the finance ministers, not very enthusiastic about the proposal, said Chief Ministers would have to be consulted before taking any view as it would have to be a political decision.
But the proposal is slated to come up during Prime Minister Atal Bihari Vajpayee's meeting with Chief Ministers scheduled for Oct 18, the sources said adding it is unlikely to meet with favour as it would be an unwise decision.
On the issue of lowering of retirement age to 58, the sources said it made no sense as it would only rob the government of experienced and senior officers without any tangible cost cutting. Bureau Report