The Madhya Pradesh government is preparing to make its millions of employees special. Currently, state employees are getting dearness allowance (DA) at the rate of 55%, which will reach 74% directly in the next financial year. That is, an increase of 19% in just one year! This is estimated to have the biggest annual growth ever.
2026-27 budget ready
The government has started work on the budget of 2026-27, although the current financial year has not spent even half. This time the government has simultaneously assessed the budget requirements of three years. All departments have been ordered to take into account the rate of 74% dearness allowance for calculating installation expenses.
Coordination with central government
According to the Finance Department, the Government of India can increase DA by 3% in the remaining period of 2025-26. This will make the Center’s DA 58% and the employees of the state will also get benefit in the same proportion. However, pensioners are still being given only 53% inflation relief, as the Chhattisgarh government has not agreed to increase 55%.
Displeasure in pensioners
Ganesh Dutt Joshi, patron of Pensioners Welfare Association, said that injustice is being done to pensioners. They are getting 2% less inflation relief than employees and old arrears have not been found.
Expenditure of 85 thousand crores
The installation expenditure in the state is about 30% of the budget. In 2023-24, this amount was about 72 thousand crores, which is estimated to reach 75 thousand crores in 2024-25 and 79 thousand crores in 2025-26. In 2026-27, this figure can cross 85 thousand crores.
Preparation of eighth pay scale
The Central Government has formed the 8th Pay Commission. Subsequently, preparations for new pay scale for 7.5 lakh regular employees and 4.5 lakh pensioners of the state have also started. The last time the basic salary was increased by 2.75 times in the seventh pay scale, due to which the monthly salary increased from Rs 7,000 to Rs 18,000.
