New Delhi. Four major decisions were taken today in the Union Cabinet meeting chaired by Prime Minister Narendra Modi. The government has announced a 3 percent increase in the Dearness Allowance (DA) of central employees across the country. Dearness allowance of employees has increased from 60 to 63 percent. The increased dearness allowance will be applicable from July 1, 2026. The arrear number from July to October is likely to be added to the salary and received in November. Increasing DA will increase the financial burden on the government exchequer by approximately Rs 10,016 crore.
About 48 lakh central employees and 68 lakh pensioners will benefit from this decision of the Central Government. Giving information regarding the decisions taken in the cabinet meeting, Union Minister Ashwini Vaishnav said that out of the four major decisions taken today, two decisions will greatly strengthen the manufacturing sector of the country, generate employment and boost the economy through manufacturing. The Cabinet today approved 'Container Manufacturing Programme' and 'Sports Goods Manufacturing Scheme'. Both these big programs are part of the Prime Minister's mission, whose objective is to strengthen each sector individually by understanding the specific problems of each sector and eliminating them.
Delhi: Union Minister Ashwini Vaishnaw says, “Four major decisions were taken at today's Cabinet meeting. Two of these decisions will significantly strengthen the country's manufacturing sector, generate employment and boost the economy through manufacturing. The Cabinet approved the Container Manufacturing Program today. Prime Minister Narendra Modi also approved the Sports Goods Manufacturing Scheme. These two major programs are part of the Prime Minister's mission to strengthen manufacturing sector by sector, understanding and addressing the specific problems faced by each sector. The third decision. concerns capacity building in rural areas and promoting development based on local planning, local problems and local resources…”
— IANS (@ians_india) October 28, 2026
The third decision of the Cabinet is related to capacity building in rural areas and promoting development on the basis of local planning, local problems and local resources. 'Pradhanmantri Vikas Gram Yojana', has been designed keeping in mind the actual needs of the grassroots level. Regarding the fourth decision regarding increase in DA of central employees, the Union Minister said that this is a Diwali gift from the government to the employees and pensioners.