"The DA hike will modestly increase the disposable income of the government employees and pensioners. The timing of the announcement may boost festive sales of small ticket durables", Aditi Nayar, Principle Economist ICRA told IANS. The Union Cabinet raised dearness allowance by 5 per cent in a move that will benefit 50 lakh government employees and 65 lakh pensioners. Finance Minister Nirmala Sitharaman has also said that the government will "front-load", or expedite, infrastructure spending to boost consumption. The economy fighting slowdown, has been given a fiscal push of ₹1.45 lakh crore by the government recently through corporate tax cuts.

Source: Mint October 10, 2019 10:18 UTC