New Delhi, April 18 -- The Union Cabinet's decision on Saturday to increase DA allowance of central government employees and Dearness Relief (DR) for pensioners by 2 per cent will cost the exchequer Rs 6,791 crore.

It represents an increase of two per cent over the existing rate of 58 per cent of the Basic Pay/Pension, to compensate against price rise.

Briefing about the cabinet decisions, Information and Broadcasting Minister Ashwini Vaishnaw said the decision will benefit over 50 lakh Central Government employees and over 68 lakh pensioners.

"Another very big decision was taken today. I would like to extend my heartiest congratulations. DA and DR have been increased for all our central government employees and pensioners, which will ...