Union Cabinet Approves DA Hike and Major Infrastructure Projects

Union Cabinet announced a 2% hike in Dearness Allowance for Central Government employees and Dearness Relief for pensioners. This starts from 1st January 2026. This change makes the new rate 60% of basic pay or pension. It will help over 50 lakh employees and 68 lakh pensioners. The yearly cost to the government is around 6,791 crore rupees.

New Cabinet decisions

Cabinet also approved Bharat Maritime Insurance Pool. It has a government guarantee of 12,980 crore rupees to help secure maritime trade. Also, Pradhan Mantri Gram Sadak Yojana (PMGSY-III) is extended until March 2028. This comes with a budget of 83,977 crore rupees. Lastly, officials cleared two rail projects. These cover 15 districts in Uttar Pradesh and Andhra Pradesh. The projects cost 24,815 crore rupees and will help rail travel and lower traffic.