New Delhi, April 1 -- Central government employees and pensioners are eagerly waiting for the Dearness Allowance (DA) hike from 58% to 60%. Generally, this revision is announced in March; however, the government is now expected to issue the notification in the first week of April. Whenever notified, the revised DA will be effective from 1 January 2026.

What is important to note here is that this decision impacts over one crore beneficiaries with arrears to be paid to them retroactively for the consequent delay. Let us hence look at a few fundamentals and understand the basic reasons for this delay.

According to the PRS India analysis of the Union Budget 2026‑27, the central government has estimated pension expenditure at Rs.2,96,2...