August 12, 2025

The story behind the frozen Dearness Allowance (DA) instalments during the COVID-19 pandemic is now clear and hot in Parliament! The central government hit the pause button on three DA and Dearness Relief (DR) payments to its employees and pensioners. Why? To battle the harsh storm of economic disruption caused by COVID-19 and keep the government’s wallet steady. MP Anand Bhadauria raised an eyebrow over this freeze and questioned the government about the pending DA arrears. On August 11, 2025, the government responded in Lok Sabha with solid facts and figures. What exactly is Dearness Allowance, you ask? It’s a cost-of-living adjustment paid to government employees and pensioners to fight rising inflation. Dearness Relief is the similar allowance pensioners get. The government confirmed that the decision to freeze the three instalments starting January 2020, then July 2020, and January 2021 was a direct response to the financial crunch during COVID-19. This freeze eased pressure on public finances when the economy was jolted. But what about now? Is the government’s bank balance still shaking? The finance minister revealed some good news: the government’s fiscal deficit has dropped dramatically—from a whopping 9.2% in FY 2020-21 to an estimated 4.4% in FY 2025-26. So, the country is on its way to financial recovery, but it was a bumpy ride. When will employees get their frozen DA arrears? Unfortunately, the government said the pandemic’s heavy cost and extra welfare spending meant settling these arrears was just not possible in the budget. The pandemic’s financial impact spilled far beyond the first year. In short, the freeze was a tough but necessary chop to keep the country’s finances from collapsing during the pandemic storm. Now, with the fiscal health improving, eyes are on when these arrears will finally reach the employees’ pockets. Stay tuned!

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Tags: Dearness allowance, Da arrears, Covid-19 impact, Central government employees, Government finances, Lok sabha,