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Updated: Apr 25, 2020 18:58 IST

The Uttar Pradesh government has put on hold as many as six allowances payable to officers and employees in the current financial year and also frozen the dearness allowance (DA) up to June 30, 2021. The measures will lead to a saving of about Rs 12,000 crore till June-end next year, officials said.

These steps were prompted by a decline in the state government’s revenue following the Covid-19 lockdown and the need for funds to fight the pandemic.

The six categories of allowances that have been deferred from April 1, 2020 to March 31, 2021 include city compensatory allowance, secretariat allowance, special allowance given to CB-CID, anti-corruption department, economic offences wing, vigilance establishment, security and special investigation wing, the special allowance paid to junior engineers, research allowance, orderly allowance and design allowance paid in the public works department, along with investigation and planning and orderly allowance paid to officers and employees working with the irrigation department.

None of these allowances are paid to central government employees.

“A sum of about Rs 1500 crore will be saved in 2020-2021 by the decision to defer payment of six categories of allowances. A sum of about Rs 7500 crore is likely to be saved in 2020-2021 on payment of DA (if calculated on the basis of 4% increase). If the same rate of DA increase is calculated for the remaining months of 2021-2022 (up to June 30, 2021), the total saving is likely to cross the Rs 12,000 crore mark following the decision to freeze DA,” said a senior officer.

In an order dated April 24, 2020, additional chief secretary, finance, Sanjiv Mittal, said that the Uttar Pradesh government’s revenue has come down following the Covid-19 lockdown and deferment of allowances was being done to ensure the availability of funds for the containment efforts to check the spread of the Covid-19 pandemic.

In another order with regard to payment of DA to state government employees and dearness relief to pensioners, Mittal said no additional installment of DA and dearness relief will be paid from January 1, 2020, July 1, 2020 and January 1, 2021.

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He added that no arrear of DA or dearness relief will be paid from January 1, 2020 to June 30, 2021.

Meanwhile, UP State Employees’ Joint Council has opposed the state government’s move. Council chairman JN Tiwari said the decision would affect about 20 lakh state government employees.

He urged the chief minister to cut a day’s salary of government staff every month as a contribution to the UP Covid Care Fund, instead of deferring the payment of allowances.

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