DA Arrears: How Much Will the State Spend to Settle Arrear DA? Know the Detailed Calculation
DA Arrears: The lengthy legal battle concerning the Dearness Allowance (DA) of West Bengal government employees took a significant turn following a recent directive from the Supreme Court. While this verdict brings a glimmer of hope for a section of employees, it simultaneously indicates a substantial financial pressure on the state exchequer. Here is a detailed analysis of Thursday’s judgment and the subsequent administrative and political equations.
Supreme Court’s Directive and the Financial Equation
The Supreme Court has explicitly ordered that 25% of the arrear DA due to state government employees from August 2009 to December 2019 must be paid immediately. The central topic of discussion in administrative circles now is: exactly how much will this cost the Nabanna (State Secretariat)?
According to estimates, clearing this 25% arrear could cost the state government slightly less than ₹10,500 crore. The magnitude of this amount becomes clear when compared to the state budget. For instance, the allocation for the entire agriculture sector in the last budget was ₹10,079 crore; the amount required for this 25% DA payment exceeds that figure. If the total arrears (100%) are calculated, the liability stands at approximately ₹42,000 crore, which is more than double the annual expenditure of the ‘Lakshmir Bhandar’ scheme (₹19,285 crore).
What About the Remaining 75%?
While the court has ordered the immediate payment of 25%, questions remain regarding the remaining 75% of the arrears. The Supreme Court has taken a specific step in this regard. The apex court has directed the formation of a four-member committee headed by a retired judge to decide on the method of payment and the number of installments. This committee will deliberate and decide how and over what period the state government will clear the remaining dues.
Political and Legal Interpretation: Win or Loss?
Political debates have intensified surrounding this verdict. Opposition leaders view this as a major defeat for the state government and pressure on the Mamata Banerjee administration, especially right before the elections.
On the other hand, within the Trinamool Congress and among a section of legal experts, this is seen as a partial ‘relief’ for the government. This is because the Calcutta High Court had previously ordered the payment of the entire arrears within just three months. The Supreme Court’s verdict offers some relaxation regarding the timeline and the immediate quantum of payment. By paying 25% now and forming a committee for the rest, the state government is perceived to have gained some valuable time.
Budget Announcement and Current Scenario
Coincidentally, on the same day the Supreme Court delivered this verdict, State Finance Minister Chandrima Bhattacharya presented the interim budget in the Assembly. The budget announced a fresh 4% hike in DA for state government employees. However, it is important to note that this 4% hike has no direct relation to the arrear DA (under the 5th Pay Commission) ordered by the court. Even after the new announcement, the gap between the state and central DA rates stands at 36%.
