In a festival bonanza for central government employees and pensioners, the cabinet approved a 4 per cent increase in dearness allowance and dearness relief, respectively.

The additional instalment represents an increase of 4 per cent over the current rate of 42 per cent of the basic pay or pension, whichever is applicable. The government said the decision will help people “compensate against price rise” and is in line with the formula based on the recommendations of the 7th Central Pay Commission.

The DA/DR is paid to central government employees/pensioners to adjust the cost of living and to protect their basic pay/pension from erosion in the real value. These are revised twice a year from January 1 and July 1.

Ahead of the assembly polls in key wheat-growing states, the government on Wednesday announced an increase in the minimum support price of wheat by Rs 150 to Rs 2,275 per quintal for the 2024-25 marketing season.

This is the highest quantum of increase in MSP for any marketing season since the Modi government came to power in 2014.

Besides, MSP for five other rabi crops — gram, barley, lentil (masur), rapeseed-mustard seed and safflower — have been hiked.

The government has also extended restrictions on sugar exports beyond October 31 this year. Earlier, the restrictions were imposed until October 31.