By how many percentage points did the Union Cabinet raise Dearness Allowance in its decision of 28 October 2026?
- A.2 per cent
- B.3 per cent
- C.4 per cent
- D.5 per cent
Correct answer
Explanation
The correct answer is 3 per cent. The Cabinet cleared an additional instalment of Dearness Allowance for serving employees and Dearness Relief for pensioners representing a rise of three percentage points over the rates already being paid. Those rates stood at 60 per cent of basic pay or pension, so the revision carries the figure to 63 per cent. Option A understates the rise; a two point increase was not what the Cabinet sanctioned. Option C and option D overstate it, and neither matches the quantum in the decision. A useful check for the aspirant is the arithmetic itself: if the old rate was 60 per cent and the new rate is 63 per cent, the difference can only be three points, so any option other than B contradicts the pair of rates that the same decision records.
Read the full article: Dearness Allowance Raised 3% to 63% From 1 July 2026
Practice Questions
From which date does the revised Dearness Allowance rate apply?
- A.1 January 2026
- B.1 April 2026
- C.1 July 2026
- D.1 October 2026
Show answer
The Cabinet approved the release of the additional instalment with effect from that date, which is why the employees and pensioners covered by the order also become entitled to arrears for the months that have already passed between the effective date and the date of the decision.
Read the full explanation →What is the combined annual burden on the exchequer from the Dearness Allowance and Dearness Relief revision?
- A.7,540.20 crore rupees
- B.10,016.10 crore rupees
- C.12,480.75 crore rupees
- D.15,220.50 crore rupees
Show answer
This is the figure the Cabinet put on the combined effect of the higher Dearness Allowance for employees and the higher Dearness Relief for pensioners, counted for a full year.
Read the full explanation →The formula used to work out the Dearness Allowance increase rests on the recommendations of which body?
- A.The 6th Central Pay Commission
- B.The 7th Central Pay Commission
- C.The Sixteenth Finance Commission
- D.The Reserve Bank of India
Show answer
The Cabinet described the increase as being in accordance with the accepted formula, which is based on that commission's recommendations, so the percentage is arrived at mechanically rather than by negotiation.
Read the full explanation →For applicants approved under Round 4, the tenure of the PLI Scheme for Textiles has been extended up to which financial year?
- A.2029-30
- B.2030-31
- C.2031-32
- D.2033-34
Show answer
The extension is deliberately limited to companies approved under Round 4, and the reason given is practical: a manufacturer entering now needs a longer investment and operational horizon to build a plant and then scale up its capacity, which a shorter tenure would not allow.
Read the full explanation →The application portal for Round 4 of the PLI Scheme for Textiles will remain open during which period?
- A.1 October to 30 November 2026
- B.1 November to 31 December 2026
- C.1 December 2026 to 31 January 2027
- D.1 November 2026 to 31 March 2027
Show answer
The Ministry of Textiles has set a two-month window in which the online portal will accept fresh applications under Round 4, and eligible companies have been asked to apply within that period in keeping with the scheme guidelines.
Read the full explanation →