Expected DA was minimum

 Expected DA was minimum

50  to  60 slab From Nov- 2020 as per 2001 base year calculations. But declared only 43 slabs as per changed base year 2016 series calculations. 


Reasons for short slab declaration:


1- base year changed

    From 2001 to 2016


2- some other changes, which has caused adverse effect on calculation are:


1-Collecting centers 

Increased from 78 to

88(lower centers included) 


2- markets increase

     From 289 to 317

 ( lowest rate market included) 


3-consumer items 

   Increased from 392

  To 463(max non

   Food articles include) 


4- weightage of food

     And beverage items     reduced To  39.17℅ from 46.2%. 


5- Inclusion of non foods article Healthcare, housing, 

 Education, transport Communication, 

Recreation

 & weightage of

 these items increased

 From 23℅ to 30℅


5- petrol and electricity

     Weightage decreased

     From 6.43℅ to 5.50℅


As Result of above changes consumer price

Index for industrial worker increased marginally

 for sept-20 and stood at 339 only, which would otherwise

 expected around 344, if calculated with base year 2001 old weightage. 


Above changes were made hurriedly on 22.10.2020 putting negative effect on CPI for sept-2020, which was otherwise due for declaration  on last working day of October 2020.



So, sept-20 index

Stood marginally at 339 (which was likely around 344) and same declared on

Same day on 22 oct

These all decisions were

taken very fast. 

Effective month could have been after sept-20, 

after major changes. 


Thus, I afraid that In future index Increase will be very marginal under new weightage ratios as per base year 2016.


Labour minister said

These changes are

Very balance to

Maintain

'INFLATION' control. 


New index is 118

Of base year-2016

And conversation factor

Is 2.88 to convert it into

Old. 

118×2.88=339.84

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