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Indian Express
6 days ago
- Business
- Indian Express
HC order to make Sixth Pay Commission report public triggers new row over DA
A FRESH controversy has erupted over Dearness Allowance (DA) for West Bengal government employees, after the Sixth Pay Commission report was made public by the state government on Wednesday. This comes after a Calcutta High Court directive that the report should be published online by July 1. The controversy centres around a key recommendation made in the report — specifically in paragraph 12.4 — pointing out that the state is not bound to follow the All India Consumer Price Index (AICPI) to determine DA increases. The Commission, chaired by economist Abhirup Sarkar, said the state may determine DA on the basis of its own financial capacity. The court order was issued by Justice Amrita Sinha in response to a petition filed by government employee Debaprasad Halder. The petitioner had argued that while the state cited the Sixth Pay Commission in its defence in the ongoing DA litigation, the report itself had never been made publicly available. The court instructed the government to upload the document on the official website of the State Pay Commission. The Commission, chaired by economist Abhirup Sarkar, said the state may determine DA based on its own financial capacity. 'In view of the above, the Commission recommends that the State Government may from time to time decide the quantum of Dearness Allowance to be given to the employees, taking into consideration the financial resources available to the State Government. The State Government shall not be required to adhere to the prevailing All India Consumer Price Index for the purpose of granting/or fixing and /or enhancing the quantum of Dearness Allowance,' the report states. This has drawn sharp criticism from employee organisations, who allege that the recommendation legitimises the state's reluctance to align with central DA rates. They also allege that it formed the basis for the government's decision to reduce House Rent Allowance (HRA) from 15% to 12% of basic pay. 'It was our long-standing demand to make the report public. Now, it is clear why the government has been saying it is not bound to match central DA rates or maintain earlier HRA levels,' said Malay Mukhopadhyay, leader of the Confederation of State Government Employees, West Bengal, which is one of the petitioners in the legal battle. Dearness Allowance is extra money given to government employees and pensioners to help them deal with rising prices, calculated as a percentage of the basic salary or pension. The DA issue has been a long-standing point of contention in West Bengal. The state currently pays 18 per cent DA, following a 4 per cent hike announced by Chief Minister Mamata Banerjee in this year's budget. In contrast, central government employees receive 55 per cent DA. 'The revised House Rent Allowance of the employees… may be fixed at 12 per cent of the revised Basic Pay,' the Commission report states. The matter gained renewed urgency after the Supreme Court, on May 16, ordered the state to release 25 per cent of outstanding DA arrears within three months. A bench of Justices Sanjay Karol and Sandeep Mehta passed the interim order while hearing the state's appeal against a 2022 Calcutta High Court ruling that had directed parity with central government DA rates. The Supreme Court specified that the interim relief would apply to arrears accumulated between 2009 and 2019, affecting nearly 10 lakh state employees. 'We are of the considered view that the petitioner-State should release at least 25% of the amount due and payable… within a period of six weeks from today,' the court said in its order. Meanwhile, the deadline for this payment ends on Friday, June 27, but the state government has not yet made any announcement. 'The Sixth Pay Commission has misled the government. Our fight in court will continue,' Mukhopadhyay said. Atri Mitra is a Special Correspondent of The Indian Express with more than 20 years of experience in reporting from West Bengal, Bihar and the North-East. He has been covering administration and political news for more than ten years and has a keen interest in political development in West Bengal. Atri holds a Master degree in Economics from Rabindrabharati University and Bachelor's degree from Calcutta University. He is also an alumnus of St. Xavier's, Kolkata and Ramakrishna Mission Asrama, Narendrapur. He started his career with leading vernacular daily the Anandabazar Patrika, and worked there for more than fifteen years. He worked as Bihar correspondent for more than three years for Anandabazar Patrika. He covered the 2009 Lok Sabha election and 2010 assembly elections. He also worked with News18-Bangla and covered the Bihar Lok Sabha election in 2019. ... Read More
The Hindu
21-06-2025
- Business
- The Hindu
Industries demand reduction in power tariff as consumer price index registers a decline
With the Consumer Price Index (CPI) for April 2025 declining compared with last April, industries in Coimbatore are demanding that the Tamil Nadu Power Distribution Corporation (TNPDCL) retain the electricity tariff for industries at the same level or reduce it. Based on the multi-year tariff revision introduced in 2022, industries will see 6% increase in power tariff from July 1. The Tamil Nadu Electricity Regulatory Commission (TNERC) order says that the control period under the multi-year tariff frame work shall be five years. The year preceding the first year of the control period shall be the base year where the Commission desires to fix multi year tariff. A formula based on Consumers' Price lndex (wholesale Price lndex (or) a quantum (Percentage / value) required to meet the Aggregate Revenue Requirement of the licensee shall be prescribed. Industry sources here said the All India Consumer Price Index for April 2025 is 3.48 % as against 4.83 % in April 2024. Since there is a decline in the CPI, the Commission and the TNPDCL should not implement the annual 6 % annual hike in tariff this year. They urged the TNERC also to issue orders to either retain the tariff or reduce it. Electricity consultants said if the CPI has reduced in April this year, the TNPDCL and the TNERC should not hike the tariff from July 1.
Business Standard
12-06-2025
- Business
- Business Standard
Consumer Price inflation falls to lowest since Feb-19
Ministry of Statistics stated in a latest update that year-on-year inflation rate based on All India Consumer Price Index (CPI) for the month of May, 2025 over May, 2024 is 2.82% (Provisional). There is decline of 34 basis points in headline inflation of May, 2025 in comparison to April, 2025. It is the lowest year-on-year inflation after February, 2019. Year-on-year inflation rate based on All India Consumer Food Price Index (CFPI) for the month of May, 2025 over May, 2024 is 0.99% (Provisional). Corresponding inflation rate for rural and urban are 0.95% and 0.96%, respectively. All India inflation rates for CPI(General) and CFPI over the last 13 months are shown below. A sharp decline of 79 basis point is observed in food inflation in May, 2025 in comparison to April, 2025. The food inflation in May, 2025 is the lowest after October, 2021. The sharp drop in headline inflation and food inflation during the month of May, 2025 is mainly attributed to decline in inflation of Pulses & products, Vegetables, Fruits, Cereals & products, Households goods & services, Sugar & confectionary and Egg and the favourable base effect. Rural Inflation: Significant decline was noted in headline and food inflation in rural sector observed in May, 2025. The headline inflation is 2.59% (Provisional) in May, 2025 while the same was 2.92% in April, 2025. The CFPI based food inflation in rural sector is observed as 0.95% (Provisional) in May, 2025 in comparison to 1.85% in April, 2025. Urban Inflation: Significant decline was noted from 3.36% in April, 2025 to 3.07% (Provisional) in May, 2025 is observed in headline inflation of urban sector. Sharp decline is also observed in food inflation from 1.64% in April, 2025 to 0.96% (Provisional) in May, 2025. Housing Inflation: Year-on-year Housing inflation rate for the month of May, 2025 is 3.16% (Provisional). Corresponding inflation rate for the month of April, 2025 was 3.06%. The housing index is compiled for urban sector only. Education Inflation: Year-on-year Education inflation rate for the month of May, 2025 is 4.12% (Provisional). Corresponding inflation rate for the month of April, 2025 was 4.13%. Health Inflation: Year-on-year Health inflation rate for the month of May, 2025 is 4.34% (Provisional). Corresponding inflation rate for the month of April, 2025 was 4.25%. Transport & Communication: Year-on-year Transport & communication inflation rate for the month of May, 2025 is 3.85%(Provisional). Corresponding inflation rate for the month of April, 2025 was 3.67%. It is combined inflation rate for both rural and urban sector. Fuel & light: Year-on-year Fuel & light inflation rate for the month of May, 2025 is 2.78%(Provisional). Corresponding inflation rate for the month of April, 2025 was 2.92%.
News18
12-06-2025
- Business
- News18
India's CPI Inflation In May 2025 Falls To 2.82%, Lowest Since February 2019
Last Updated: India's retail inflation in May 2025 declines to a 6-year low of 2.82%; food inflation falls to 0.99%, attributed to lower prices of pulses, vegetables, fruits, and cereals. CPI Inflation In May 2025: India's retail inflation, based on the Consumer Price Index (CPI), in May 2025 declined to 2.82%, which is the lowest YoY inflation after February 2019, according to the latest official data released on Thursday. The CPI inflation had stood at 3.16% in the previous month of April 2025 and 4.75% in May 2024. 'Year-on-year inflation rate based on All India Consumer Price Index (CPI) for the month of May, 2025 over May, 2024 is 2.82% (Provisional). There is decline of 34 basis points in headline inflation of May, 2025 in comparison to April, 2025. It is the lowest year-on-year inflation after February 2019," the Ministry of Statistics & Programme Implementation said in a statement on June 12. Food inflation was at 0.99 per cent in May, significantly down from 8.69 per cent in the year-ago month, according to data of the National Statistics Office (NSO). 'The significant decline in headline inflation and food inflation during the month of May 2025 is mainly attributed to a decline in inflation of pulses & products, vegetables, fruits, cereals & products, households goods & services, sugar & confectionary and egg and the favourable base effect," NSO said in a statement. The food inflation in May 2025 is the lowest since October 2021. Last week, the Reserve Bank of India (RBI) revised its retail inflation projection for FY26 to 3.7%, down from its earlier estimate of 4%. This marks the lowest average retail inflation forecast by the central bank in recent years. The downward revision came alongside a surprise 50 basis points repo rate cut, bringing the key policy rate down to 5.5%, and a 100-bps CRR reduction as the RBI signalled confidence in the easing of price pressures amid a supportive global and domestic backdrop. However, RBI Governor Sanjay Malhotra said, 'While food inflation outlook remains soft, core inflation is expected to remain benign with easing of international commodity prices in line with the anticipated global growth slowdown. The inflation outlook for the year is being revised downwards from the earlier forecast of 4.0 per cent to 3.7 per cent." First Published: June 12, 2025, 16:12 IST
Indian Express
03-06-2025
- Business
- Indian Express
Why SC ordered West Bengal govt to pay Dearness Allowance arrears worth Rs 11,000 cr
The Supreme Court on May 16 directed the West Bengal government to release 25% of the outstanding Dearness Allowance (DA) arrears to its employees within six weeks. This would amount to Rs 11,000 crore and benefit nearly 10 lakh employees, sources said. The interim order offers partial relief in a long-standing dispute over pay parity with central government employees. However, it would also significantly burden the state government's finances. What is the issue, and why has the West Bengal government opposed increasing the DA in the past? We explain. Dearness Allowance is paid to government employees and pensioners in addition to their salary to manage the impact of inflation. It is calculated as a percentage of the basic pay or pension. Typically, the All India Consumer Price Index-based inflation rate is used for calculating increases in the cost of living. For greater effectiveness, the DA is revised twice a year. In West Bengal, state government employees receive 18% DA, following Chief Minister Mamata Banerjee announcing a 4% hike during her Budget speech this year. In comparison, central government employees receive 55% DA. The Supreme Court was hearing the state government's appeal against a 2022 Calcutta High Court ruling (The State of West Bengal & Ors. Vs Confederation of State Government Employees, West Bengal & Ors.). The HC had directed West Bengal to bring its DA disbursal in line with central government rates. An apex court bench comprising Justices Sanjay Karol and Sandeep Mehta has now said the interim relief would apply to DA arrears accumulated between 2009 and 2019. The next hearing in the case is in August. Among other things, the court will consider whether the right to receive Dearness Allowance is a fundamental right. What is the case? The legal battle between the state government and its employees began with two leaders of the West Bengal Confederation of State Government Employees, which is affiliated with the Indian National Trade Union Congress (INTUC). In 2016, Malay Mukhopadhyay and Shyamal Kumar Mitra sent a notice to the Chief Secretary, demanding outstanding DA. They later filed a petition with the State Administrative Tribunal (SAT). 'We realised then that the government is not in the mood to pay our outstanding DA, and the courts are the only way to get it. So, we went to the SAT, which gave an order against us. We challenged the order and went to the Calcutta High Court. After that, our journey began, and the West Bengal government has lost every case against us,' said Mukhopadhyay. On May 20, 2022, the HC directed the West Bengal government to release the DA and corresponding arrears to its employees. A bench of Justices Harish Tandon and Rabindranath Samanta said the allowance should be released within three months. The order said the arrears were to be calculated based on the All India Consumer Price Index, commensurate with their pay according to the West Bengal Services (Revision of Pay and Allowance) Rules, 2009. The rules provide for DA, medical allowance, house rent allowance and non-practising allowances. They were formulated based on the recommendations of the 5th Pay Commission in 2008. 'Owing to unabated pressure of inflation, the real value of salary fixed periodically by the Pay Commission gets continuously eroded with the passage of time. The cost of price living index is the basic factor for consideration of the Pay Commission for determination of Pay and Dearness Allowances to be paid to the employees. The State Government followed the same principles for computation and payment of D.A on basic pay fixed under 5th Pay Commission as has been done by the Central Government under 6th Central Pay Commission,' the order said. The Advocate General (arguing for the government) said that the effects of inflation vary from one place to another, and it is not imperative on the part of the state government to adopt the central government rates. However, the court held that compared to the DA paid to the central government employees, state government employees were lagging far behind. It pointed out that the state government had accepted the pay commission's revisions, and even paid DA twice in a year. This was discontinued after 2010, and the government has since 'delayed payments of DA to its employees in most arbitrary manner'. The court also said that receiving DA is a legally enforceable right, and the government's argument of 'financial inability' was not acceptable. 'Such right of the employees to sustain their livelihood with dignity has been fructified or elevated as a fundamental right as enshrined in Article 21 of the Constitution,' the ruling noted. Challenging the order, the state government appealed to the Supreme Court on November 28, 2022, but it saw multiple delays. From December 1, 2024, the hearing was postponed 18 times. What will be the financial burden on the state government? A senior finance department official said, 'We already have some rough calculations, indicating the government will have to give Rs 11,000 crore to pay the arrears as ordered by the Supreme Court.' Existing schemes also add to the government's bill. The Lakshmir Bhandar scheme for financial assistance to women from economically weaker sections costs Rs 25,000 crore. The Banglar Bari housing scheme stands at Rs 40,000 crore. Women-focused schemes, Kanyasree and Lakshmisree, aid for puja committees, and other social security schemes' spending totals more than Rs 10,000 crores. The 2025-26 state Budget was for Rs 3.89 lakh crore. The revenue deficit estimated for the period is Rs 35,314.95 crore, the fiscal deficit is more than Rs 73,000 crore, and outstanding debt stands at around Rs 7.71 lakh crore. A government official also pointed out that the debt will likely touch Rs 8 lakh crore this year. 'Last year, we increased the Lakshmir Bhandar monthly payment from Rs 500 to Rs 1000, which increased total expenditure.' What have the state's political leaders said? The ruling Trinamool Congress has so far not reacted to the issue. CM Mamata Banerjee said, 'I don't speak about the court cases. I proceed legally.' Leaders of employees' organisations expressed hope for the order to be implemented. Convenor of Sangrami Joutha Mancha, Bhaskar Ghosh said, 'We want that the Chief Minister should act legally and give us the due DA.' General Secretary of State Steering Committee Sanket Chakraborty said, 'We expect the Chief Minister will obey the order of the apex court and will give us our dues.' The opposition parties, the BJP, Congress and CPI(M), all said the order had to be implemented and that it came after several attempts by the government to block similar directives. Atri Mitra is a Special Correspondent of The Indian Express with more than 20 years of experience in reporting from West Bengal, Bihar and the North-East. He has been covering administration and political news for more than ten years and has a keen interest in political development in West Bengal. Atri holds a Master degree in Economics from Rabindrabharati University and Bachelor's degree from Calcutta University. He is also an alumnus of St. Xavier's, Kolkata and Ramakrishna Mission Asrama, Narendrapur. He started his career with leading vernacular daily the Anandabazar Patrika, and worked there for more than fifteen years. He worked as Bihar correspondent for more than three years for Anandabazar Patrika. He covered the 2009 Lok Sabha election and 2010 assembly elections. He also worked with News18-Bangla and covered the Bihar Lok Sabha election in 2019. ... Read More
