Hike Of Dearness Allowance
Hike of Dearness Allowance to all Central Government employees is passed, but Indian economy is suffering from Current Account Deficit [CAD]. The hike will be 10% for the employees which will be boosting purchasing power to 8 million employees. This increase will be with related to basic salary what he/she will be earning it.
The main side is that it will be reaching 5 million ongoing employees and 3 million retirees. What will happen after this increase in Dearness Allowance?
First thing, It will be creating inflation which is already increasing.
Second Thing, It will create more gap in the Current Account Deficit[CAD].
Third Thing, Prices of goods will increase, but what about people who live below the poverty line.
Fourth Thing, This is considered to be just a menu to hitch the vote bank in the ruling favour.
Fifth Thing, Dearness Allowance must be kept at least 50% in the saving account.
CAT 2013; Yahoo News
The main side is that it will be reaching 5 million ongoing employees and 3 million retirees. What will happen after this increase in Dearness Allowance?
First thing, It will be creating inflation which is already increasing.
Second Thing, It will create more gap in the Current Account Deficit[CAD].
Third Thing, Prices of goods will increase, but what about people who live below the poverty line.
Fourth Thing, This is considered to be just a menu to hitch the vote bank in the ruling favour.
Fifth Thing, Dearness Allowance must be kept at least 50% in the saving account.
CAT 2013; Yahoo News
