The first cabinet meeting of the newly formed PS Tamang (Golay) government in Sikkim has approved a hike in dearness allowance (DA) of government employees and dearness relief for pensioners by four per cent.

Golay took oath as the chief minister for the second consecutive term on Monday, along with 11 ministers.

“The chief minister convened his first cabinet meeting at the state secretariat soon after taking oath,” said a source.

During the meeting, the cabinet approved the hike in DA for government employees and dearness relief for pensioners from 42 per cent to 46 per cent effective from July 1, 2023.

“This increase will have a fiscal impact of Rs 174.6 crore in the current financial year,” said a source.

The cabinet also directed relevant departments to conduct a comprehensive review of the state’s Own Tax and Non-Tax revenue collection.

The cabinet decided to improve the functioning of the education department by subdividing it into two sections — school education, and higher education, technical and medical education.

“Each division will be headed by a secretary under the overall charge of the additional chief secretary,” said the source.

The new government directed the home department to prepare and meticulously execute a calendar of activities to celebrate the 50th year of Sikkim's statehood. On May 16, 1975, Sikkim became the 22nd state of India.

The cabinet recommended the appointment of MLA Sanjeet Kharel as the pro-tem speaker and the commencement of the first session of the new Assembly on June 12 for administering the oath to MLAss and electing the new Speaker.