The Union Cabinet has approved a 3% hike in Dearness Allowance (DA) for Central Government employees and Dearness Relief (DR) for pensioners. This decision will benefit nearly 1.18 crore people, including 49.2 lakh employees and 68.7 lakh pensioners.
The hike will be effective from 1st July 2025 and will give a direct boost to the salaries and pensions of lakhs of families.
Key Highlights of Cabinet Decisions
| Decision | Details | Beneficiaries / Impact |
|---|---|---|
| DA/DR Hike | 3% increase effective from 1 July 2025 | 49.2 lakh employees, 68.7 lakh pensioners |
| New Kendriya Vidyalayas | 57 new schools to be set up with ₹5862 crore investment | 87,000 students, 4,600 teaching posts |
| Pulses Mission (2025-31) | ₹11,440 crore scheme to boost domestic pulses production to 350 lakh tonnes by 2030-31 | 2 crore farmers |
| MSP Hike for Rabi Crops (2026-27) | Safflower MSP up by ₹600/qtl, Lentil (Masur) up by ₹300/qtl | Farmers across India |
| Highway Project (NH-715 Assam) | 85 km Kalibor–Numaligarh stretch to be widened to 4 lanes under EPC mode with ₹6957 crore investment | Faster transport, better connectivity in Assam |
3% DA Hike – Relief for Employees and Pensioners
The 3% hike in DA and DR will provide extra financial support to government staff and retirees, helping them fight rising inflation. This is a regular revision that the government does twice a year based on inflation and price rise.
57 New Kendriya Vidyalayas Across India
The Cabinet has approved the opening of 57 new Kendriya Vidyalayas (KVs) with an investment of ₹5862 crore.
- 20 KVs will be opened in districts where no KVs currently exist
- 14 KVs in aspirational districts
- 4 KVs in Left-Wing Extremism (LWE) areas
- 5 KVs in Northeast and hilly regions
This will benefit 87,000 students and also create 4,600 new teaching posts.
Aatmanirbhar Pulses Mission
To reduce dependence on imports, the government has launched the Mission for Aatmanirbharta in Pulses.
- Duration: 2025-26 to 2030-31
- Budget: ₹11,440 crore
- Target: 350 lakh tonnes production by 2030-31
- Beneficiaries: 2 crore farmers
The mission will focus on better seeds, post-harvest facilities, procurement support and development of climate-resilient and pest-resistant varieties of pulses.
MSP Hike for Rabi Crops
The Cabinet has also increased the Minimum Support Price (MSP) for all Rabi crops for the marketing season 2026-27.
- Safflower: Hike of ₹600 per quintal (highest)
- Lentil (Masur): Hike of ₹300 per quintal
This step will ensure that farmers get fair and profitable prices for their produce.
Assam Highway Project – Better Connectivity
The Cabinet has approved the widening of the Kalibor–Numaligarh section of NH-715 in Assam into 4 lanes.
- Length: 85 km
- Cost: ₹6957 crore
- Mode: EPC (Engineering, Procurement, and Construction)
This will improve road connectivity in Assam, reduce travel time and boost economic activity in the Northeast.
Conclusion
The latest Cabinet decisions bring relief for employees and pensioners, new education opportunities for students, and support for farmers and infrastructure growth. These steps are aimed at boosting the economy, creating jobs and making India more self-reliant.