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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