The state will incur an additional expense of Rs 2,367Cr annually CM announces 4% DA hike for govt e

Tamil Nadu Chief Minister MK Stalin on Wednesday made an announcement hiking the Dearness Allowance (DA) from the existing 38% to 42% for government employees and teachers. The 4% hike in DA would come into effect from April 1.
The move would benefit about 16 lakh government employees and teachers in the state. 
The state would incur an additional expense of Rs 2,367 crore on an annual basis.
Stalin, in a statement, said, “The state government has been working towards safeguarding the interest of government employees and teachers who have devoted themselves in ensuring that the government projects reach the public. 
Despite the financial crunch incurred due to Covid-19 pandemic and excess loan obtained by the previous government, the state government has been fulfilling the poll promises.”
Considering the request of the government employees and teachers, Chief Minister Stalin had hiked the DA by 4% and it would come into effect from April 1. As per which, the DA for the employees and teachers has been increased from the existing 38% to 42%. The move would benefit over 16 lakh government employees, teachers and pensioners. 
This would lead to an additional expense of Rs 2,366.82 crore annually. Considering the welfare of the government employees and teachers, the state government has decided to increase the DA whenever the union government announces the hike, the statement added.