[image: http://im.rediff.com/money/2009/sep/10home.jpg]The government on Thursday announced a 5 per cent increase in the dearness allowance for the central government employees and pensioners, with effect from July this year, entailing an outgo of about Rs 2,904 crore (Rs 29.04 billion) this fiscal.
The Cabinet also approved a one per cent interest rate subsidy for housing loans up to Rs 10 lakh (Rs 1 million). The government also reduced interest subsidy to two per cent for this fiscal on farm loans by public sector banks, from 3 per cent last year. Announcing the decision taken by the Union Cabinet, Information and Broadcasting Minister Ambika Soni told reporters that the combined impact on the exchequer on account of hike in dearness allowance and relief would be of the order of Rs 4,355.35 crore (Rs 43.553 billion) for a full year. The impact for the current fiscal would be Rs 2903.55 crore (Rs 29.035 billion), as the increase would be effective for nine months only from July to March. The 5 per cent increase in the DA for the employees and dearness relief for pensioners would be over the existing rate of 22 per cent of the basic pay or pension, the minister said. *Govt approves interest rate subsidy scheme for houses* The government also announced interest rate subsidy of one per cent for housing loans up to Rs 10 lakh (Rs 1 million) and earmarked Rs 1,000 crore (Rs 10 billion) for the scheme. The subsidy of one per cent will be available for first 12 EMIs (equated monthly installments) on loans up to Rs 10 lakh for houses costing less than Rs 20 lakh (Rs 2 million), Soni said after a meeting of the Cabinet. The Cabinet approved the scheme for providing interest rate subsidy on houses in pursuance with the announcement made by Finance Minister Pranab Mukherjee [ Images<http://search.rediff.com/imgsrch/default.php?MT=pranab+mukherjee>] while replying to the debate on the budget for 2009-10 in July. The interest subsidy will be routed through the commercial banks and the housing finance companies registered with the National Housing Bank, the minister said. http://business.rediff.com/report/2009/sep/10/subsidy-on-small-home-loans-da-hike-for-govt-staff.htm --~--~---------~--~----~------------~-------~--~----~ You received this message because you are subscribed to the Google Groups ""GLOBAL SPECULATORS"" group. To post to this group, send email to [email protected] To unsubscribe from this group, send email to [email protected] For more options, visit this group at http://groups.google.com/group/globalspeculators?hl=en -~----------~----~----~----~------~----~------~--~---
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